You are probably wondering that if a person can buy a house on their own, then why can’t they sell one on their own as a For Sale By Owner (FBSO) . Homes for sale in Farmington Hills, Michigan deserve a great Real Estate agent to market, stage, arrange appointments and screen buyers to assure they are pre-qualified and able to purchase your home and get you the best price possible.
Houses that have the sign stating “FSBO” (for sale by owner) do not make much profit. According to the National Association of Realtors, in 2017, 89% of the sellers sold their house through a real estate agent and 87% of the buyers hired a real estate agent for the purchase. A house sale that was handled by a real estate agent went for $249,000, whereas one that was handled by the owner went for $190,000.
A few difficulties that FSBO houses face include:
- Inability to set the right price
- Unable to understand the paperwork
- Not being able to sell the house within the planned time
- Failing to stage the house properly for the sale
- Not having enough time for giving people a house tour
Now that you know what awaits you if you put up your home for sale in Farmington Hills, Michigan, on your own, let’s have a look at the following reasons why hiring a real estate agent is more beneficial:
1. They Have More Knowledge about the Real Estate Market
You won’t be able to make a sound deal on your home for sale in Farmington Hills, Michigan, because both the parties, you and the buyer, are not familiar with most of the real estate terms. A loophole might become visible in the future that will negatively affect you both. This is where a real estate agent proves his worth. Not only is he up to date with the current real estate market trends, but he also knows what documents are needed to make the transfer as easy as possible.
2. House Is Priced Competitively
The real estate agent knows more about comps than you will ever find out on the internet. Comps are necessary for setting the price. They are the key to multiple offers. Why would you pass up on such a good opportunity!
3. They Have Several Online Marketing Strategies up Their Sleeve
A real estate agent has several connections, which allows them to market your house to the right buyers. They are recognized in the industry, which gives them the power to sell your house within a month.
4. High Profits In Homes For Sale Farmington Hills, Michigan
When a trusted and reliable real estate agent handles home for sale in Farmington Hills, Michigan, you can be assured that you will receive a hefty profit. Clients with whom he has been working for a long time will trust his judgment and might even agree to the asking price without negotiations.
Convinced why hiring a real estate agent, who will ask for a small commission (did we mention small), is such a good idea? If you think about it, a real estate agent has magical powers—sort of— that help you sell your house easily. If you are looking for such a competent real estate agent who will help you with your house’s sale, then visit Homes2MoveYou or call me 248-790-5594 and get your house listed and beat the upcoming competition.
Are you thinking about taking the FSBO homes for sale in farmington hills route for selling your house? Here’s something you should know about before you make a big mistake:
A home for sale in Farmington Hills, Michigan with signs that say “For Sale by Owner” (FSBO) are always the last one to get sold on the block. Why? As soon as people find out that a real estate agent is not involved in the process, they stop themselves from placing an offer. They are concerned about who is the point of contact. In the back of their mind, they assume that something is wrong with the house and this is why the house is being sold by the owner.
The question is: as a homeowner, why are you doing this?
Are you trying to save on the real estate agent’s commission?
You might keep a few hundred dollars in your pocket but the money that you will pay throughout the process for transfer, deeds, and liens will have your mind reeling. Most important of all, you might not be able to draft a professional contract for your FSBO homes for sale in Farmington Hills, Michigan, which will leave you vulnerable to loopholes that the buyer can take advantage of.
FSBO vs. Realtor
According to National Association of Realtors, 30% of houses found are through real estate agents. In 2016, 8% of the houses were sold by homeowners themselves. Around 51% of the houses are found on the internet, which shows how important it is to market your house on the right platform.
With that being said, let’s take a look at why hiring a real estate agent for your home for sale in Farmington Hills, Michigan is better than taking the FSBO route:
1. Selling Price FSBO Homes For Sale In Farmington Hills
FSBO – A house that is put on the market by the owner is typically sold for $190,000. There are a number of reasons behind it such as a professional not being present at the time of negotiations and failing to understand the lingo used in such meetings. There’s also a problem of trust, as buyers think they might be getting scammed.
Realtor – A home for sale in Farmington Hills, Michigan being handled by a real estate agent is typically sold for $240,000. The reason behind this increase in sale price is because they are able to compare your house to comps and convince the buyer that all the features in the house are worth the asking price.
2. Time on Market
FSBO – It takes around 88 days for a homeowner to sell the house on his own. Usually, the house sits 18 days to 3 weeks longer on the market than a house being sold by a realtor.
Realtor – A house can be sold by a real estate agent in 2 months or less. The time frame also depends on the features of your house i.e. whether they are trending in the market or not.
3. Stress on Seller
FSBO – FSBO-ers are always worried about one thing or another regarding the documents of the house. They are 70% more stressed than people who work through a real estate agent. They have to tackle everything themselves; the packing, the staging, the sale and moving.
Realtor – Realtors have resources, which they recommend to homeowners. From legal paper work to repairs and finance, everything is taken care of by someone else.
This is why working with a real estate agent is a much better option than taking the FSBO route. Not only are you stress-free but you make a pretty profit on the sale too! Before putting up your home for sale in Farmington Hills, Michigan on the market, why not get it appraised by experts. Visit Homes2MoveYou now and get yourself a real estate professional like me to guide you through the process. 248-790-5594
How to Get a High Home Appraisal
The one thing that both sellers and buyers want is a successful and smooth transaction. Thanks to the real estate agent, this is possible but one thing always stands in the seller’s way: the home appraisal value. If the house is not appraised at the right value, the seller could be looking at a huge loss, no matter how recent or big the renovations.
This is why it is recommended that before making any major renovations on your home for sale in Novi, Michigan, consult a real estate agent and get to know about the current housing trends. If the house is not appraised as you expected, then the deal can spiral out of your control.
The appraiser looks at many aspects of the house before determining its value. However, if you are concerned that the appraiser might miss something and accidentally appraise the house at a low value, then we have some advice for you.
Following are three secret keys that will help you get a high home appraisal:
1. Do Your Homework – Information is King
It takes an appraiser around thirty minutes to check out the house and come to a conclusion. Since they have inspected so many homes, they can easily spot a repair at first glance. However, it is possible that they miss something. Same goes for the information about the comps. Since, you have been into your neighbors’ houses, you know more about how they are similar to your house. So, create a file that has all the documents of the house, the receipts of the repairs and renovations you got done and any DIY projects you did. Hand the file to the appraiser when he arrives, so that he knows every little detail about your home for sale in Novi, Michigan.
2. Repair is the Name of the Game
You see it’s broken then get it fixed immediately… no matter how small or big the repair is. Maintenance, also known as the “effective age” of the house, plays a huge role in the home appraisal. Little details such as a crack in the corner of the window, chipped tile in the bathroom, a crack in the foundation of the fire place, etc, all these can lower the value of the house by small amounts, which can quickly accumulate to a huge number. So, go over the house with a fine tooth comb and get all the repairs fixed before the appraiser arrives.
3. Clean, Clean and Clean
While a clean house doesn’t affect the value of the house but it sure can put the appraiser in a bad mood. However, things like soiled carpeting, overgrown lawn grass and marks on the wall can definitely affect the house value. So, better get to cleaning.
These three secret keys will not just help you in getting a high appraisal on your home for sale in Novi, Michigan but also a speedy sale. So, make sure that you are prepared when the appraiser arrives and don’t forget to hand him that file. Looking for a real estate agent to help with your house sale? Visit Homes2MoveYou or please feel free to call me @248-790-5594
How Comparable Sales are Use to Price Your House
Comparable sales are one of the biggest weapons in the real estate agent’s arsenal that he uses to set the sale price of your house. It involves looking at the previously sold neighboring houses and drawing comparisons based on its features. Of course, the current market value tells you a lot about how much the house can be sold for but if you want to find out the sale price to the last dollar, then looking at comparable sales will give you a clear idea on how high you can go on your asking price.
The reason why this step of the home-selling process is best handled by a real estate agent is because they have been inside hundreds of houses. They know what features impress buyers and what they see as frivolous and a waste of money. So, if you are planning to go the FSBO route to save on the commission, know this that you might lose a winning deal.
How Comparable Sales Help In Setting the Asking Price
Your home for sale in Oakland County, Michigan is valued on many factors, which include:
Location: The closer the comparable sale is to your house, the better the chances are that it has the same layout.
Home Type: From the square footage to the construction material, home style including the number of rooms, basement and attic… everything is taken into account.
Upgrades: Any upgrades that you have made in the past year are included in the comparable sale. However, if these renovations do not match the basic requirements of the buyer, you might not see any ROI.
Date of Sale: When using comparable sales, make sure the house was sold within the 90-day window.
Sale Sweeteners: If the comparable sale offered sale sweeteners such as paying for the closing costs or low down payment, then you will have to lower the asking price of your house or offer the same benefits.
Insider Insights Allow Real Estate Agents to Settle on the Price
Subdivisions present a problem when selling your home for sale in Oakland County, Michigan because they are different than the comps. However, since the real estate agent has insider knowledge about the comps in your areas, they will be able to negotiate on the asking price with the buyer based on other factors such as land value and major repairs.
This way, even if the buyer comes back with a counteroffer, you will be able to show him the comps as proof that the house is in fact valued just right. Of course, at this point you can use sale sweeteners to entice the buyer. However, even this should be done keeping in mind that you are not giving away something that will cost you more.
In such cases, what you can do is offer home insurance or kitchen appliances for free. These big gestures will show the buyer that you are willing to offer something in return for the high asking price on the house.
They Pick the Right Home Listing Price
Say, there are about four comps in your neighborhood. Some of them were sold cheap and some of them were sold at a high price. At this step, the real estate agent evaluates each and every feature of the house from the quality of the paint to the durability of the roof and more to set the right asking price to the last dollar.
So now you know why having a real estate agent is so important when it comes to setting the asking price on your house. Looking for a real estate agent to help you put up your home for sale in Oakland County, Michigan? Visit my website Homes2MoveYou or you can reach me at 248-790-5594 for the right listing price.
Before you even think about buying a home for sale in Northville, Michigan, why not have a look at your financials. Most people believe that the mortgage loan they will apply for will cover all the costs but there are few fees that you will have to pay out of your own pocket. For this reason, you need to have enough savings, so that you can cover the service charges and the real estate agent’s fees.
We like to call these extra costs as fee myths, which buyers think are not real. So, what is the first payment that you need to have on hand to make an offer?
The down payment!
Here’s some good news: you don’t have to pay a 20% down payment when buying a home for sale in Northville, Michigan. Most lenders ask for a 3.5% down payment that is if you have a clean credit card statement. If your credit score is below 600, then be prepared to pay a minimum of 10% down payment.
Following are the fees explained briefly in order:
1. Appraisal Fee
The appraisal fee is the assurance which the lender needs before giving you the loan. It’s insurance against the proof that the loan amount you are asking for matches the house’s value. This fee costs somewhere between from $200 to $425.
2. Home Inspection Fee
The most important thing to keep in mind is that never let go of a home inspection in return for an incentive. The few dollars you will be saving now will cost you thousands in the future. From assessing leaks and molds to plumbing problems, the HVAC system, roof and gutter, everything comes under this. Do not send an offer until you have the home inspection report in your hand. This fee costs somewhere between from $300 to $500.
3. Application Fee
The application fee is the fee the real estate agent needs to run your credentials for the credit report. It also involves a few other fees, which is why it is important to ask your real estate agent for a final cost and its breakdown. This fee costs somewhere between from $75 to $300.
4. Lender’s Origination Fee
The amount charged on the loan is known as the lender’s organization fees. It includes charges for underwriting the loan, funding the loan and loan application. This fee is usually 1.5% of the loan.
5. Titles Services
A title search allows you to make sure that the home for sale in Northville, Michigan you are looking to purchase is not owned by someone else. Through this process, you can make sure that you are not being scammed. This fee costs somewhere between from $150 to $400.
6. Survey Costs
Want to know about the house’s major features and dimensions then you need to pay fees that’s somewhere between $150 to $400.
7. Tax Service Fee
Taxation fee cost is $50 and is paid to make sure that the tax payment documents are in order.
8. Private Mortgage Insurance
Buyers, who are lucky enough to pay a 3.5% down payment, are subject to pay private mortgage insurance, which can be from 0.3% to 1.5% of the loan. This is an assurity that if you fail to pay back the loan and your house forecloses, the lender will be safe.
So, there you go… home-buying fees that up until now you considered a myth. Before placing an offer on the home for sale in Northville, Michigan, visit Homes2MoveYou. Get in touch with me 248-790-5594 and get the house appraised from experts.