Whenever someone decides to sell their home, the
first thing you do is usually sit down with a calculator and factor in the
price of hiring a Realtor. Fees for real estate brokers are sturdy and cut into
our equity or profit margin, especially in difficult times such as a recession
cycle. Many sellers think the idea of trying to do a fair sale by owner -
nicknamed FSBO (pronounced "fizz-bo"), by real estate professionals - as an
alternative to reduce costs. Of course, there are pros and cons to be weighed
before deciding, as well as a variety of factors to consider so that you can
make an informed choice.
Whether you go alone or you use the services of a
professional broker will depend on your particular circumstances and your own
experience level. But before you choose which way to go, always helps to
consider these five main points that Dean Graziosi took the time to compile in
his adventure of helping people in the real-estate jungle.
1. Pricing & Co-op Cons
When crunching numbers regarding brokerage
commissions, keep in mind that most sales involving both a listing agent and
buyer agent - in other words, Realtor whose sign is in the yard, plus another real estate agent who brings a
buyer. Instead of finding a qualified purchaser standard search fee or
"co-op board" is usually paid second estate agent.
As a FSBO if a qualified real estate agent brings a
buyer and a successful purchase offer will still have to pay a finder's fee. So
even selling your home on your own will usually involve some sort of pay
brokerage commission. The cost would be about 3 percent of the selling price,
and should be considered in preliminary calculations before deciding whether to
do a FSBO or hire a professional. Of course, you can refuse to work with
Realtors, but may be handicapping your marketing efforts because they have
access to the most qualified and willing buyers.
2. Inclusion in MLS
Multiple listing service (MLS) is the definitive
source for buyers in the residential real estate business in the United States.
If you decide to market and sell your home by yourself - not including it in
the MLS - will eliminate most potential buyers.
There are other options, however, because some
Realtors offer flat-fee, fixed price plans that offer a limited menu of services
but do not include a list, photographs, and descriptions of goods in the MLS.
The cost of including the MLS is well worth the added expense and can easily be
added to the final sales, so it pays for itself eventually.
3. Negotiations
Many sellers - especially first timers - fail to
recognize the value of paying for negotiations of professional experts but this
is one of the most compelling reasons to hire a real estate expert. The value
of an expert negotiator is underlined by the fact that many experienced and
highly trained real estate professionals recruit
other agents to represent them when they sell their homes.
That may sound rather strange and ironic when you
first look at it, but third party sales are generally more successful, more
objective and more easily accepted by buyers - which means that achieving
better results in terms of higher prices and more favorable conditions. In addition,
if you paid a professional to do your home selling, it will be his
responsibility to mitigate wrinkles or solve unforeseen problems that may arise
before the sale is completed successfully.
4. Time is money
Those buyers who are on a serious house hunting
expedition is expected to tour the property according to their schedule,
instead of yours. And if they schedule an appointment and then fail to appear,
your loss, not theirs, even if you had to jump through hoops and a short-term
hire household to make it happen. Realtors are able to work evenings and
weekends, you cannot ask, so consider how the role FSBO will affect your
lifestyle before opening your home to strangers and get to the imposition of
phone calls, e-mails, and appointments broken.
5. Special Alternative
Brokerage firms offer several types of programs and
services as alternatives to those typically associated with real estate. As
mentioned above, there are real estate brokers who offer a limited menu of
services for a low price but will put your home in MLS. Others will provide
assistance with contracts and negotiations, if you have your own bookings and
excursions, and there are a number of variations on this service for a fee
partially reduced.
Sit down with a legal pad and create a list of
advantages and disadvantages of a partial page on the other. By taking a visual
inventory of the process before, it may help to imagine how things will
develop, and if you go it alone sacrifices are worth it in terms of time,
stress levels, and financial rewards. One thing to keep in mind - no matter
which way you go - is that you can change your mind if things do not go as
expected.
For example, when you contract your agent to sell
your home listing expires, you can try to do it yourself. Selling it yourself
can be fun - and can give you extra confidence and tons of experience that
would not otherwise receive. This experience will carry over into other aspects
of your real estate investment career and
pay back in dividends that could be worth thousands of dollars.
Or if you start as a FSBO and it seems too difficult,
you can always choose your phone and start interviewing real estate brokers
eager. Creating a working partnership with an expert real estate agent can be a
great way to not only sell houses, but also have access
to a network of information about good deals coming into the market. Realtors you
are able to trust and rely on are also a great resource for managing properties
they already own. They can help you rent, supervise tenants new lease, or
things such as repairs, if you invest in other cities and cannot personally be
there to attend
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