Are you in the process of selling your home or condo in St Petersburg? Most people are lost when they are faced with what's coming in the process of selling. We as Realtors are dealing with this on a daily basis and decided it might be a helpful tool for all sellers and buyers to write about the transaction process from start to finish. When you have made the decision to sell, you first need to find out how to sell your property. Do you want to hire a Realtor, do you want to sell yourself or do you want to hire a discount broker? All of those options are valid and each have there pros and cons.
Some people decide to sell themselves, which is understandable considering saving all that money that they would have to spend in commission. There are a lot of things you need to be aware of such as how do I market the property right? Will I be available and "Johnny on the spot" for showings, can people reach me via phone all day long? Potential buyers are only calling once! In this kind of Market if they don't get an immediate response, they are moving on to the next property. How do I pre-qualify potential buyers? Once we have an offer, do you fully understand the purchasing contract? What do you do when the buyer is in default? What does that mean? What if the inspections reveal damages, how do you negotiate the part you are liable for? We could go on and on and on. Statistics proof that 80% of all For Sale By Owner realize within a few weeks, that is does take more than a sign in the yard and hire a Professional Realtor. It is always good to do your research in advance to prepare yourself.
Selling with a discount brokerage is another way a lot of sellers are taking. And depending on the market and your personal situation, that might be the right choice for you. Again, do your home work in advance, ask questions such as: Will the property be in the MLS? If so, how much compensation do you need to offer to the Realtor who is bringing the buyer? What is the Broker charging? Where will the property be advertised? Who will take the calls? Who is pre-qualifying the buyer? Who is answering questions regarding offers and counter offer, contingencies in the offer? Will I have an Agent on my site at all times if I need answers? Who is doing the closing? Again, we could go on and on and on.
Of course we are recommending to go with a Professional Realtor. You have do your research in advance. And here is why we are saying that this is the most successful way to go. We are doing this for a living on a daily basis. We have years of experience and believe it or not, we have to take a state exam, in order to get a license and do continuing education. It is a profession just like any other profession. When you have problems with your roof, you automatically call somebody who knows what they are doing. So why not hire a professional to sell your home? The only reason why a lot of sellers don't do that, is the commission, which is understandable. Yes, we are charging a percentage for our services, but in the end it will be money well spent. Having a reliable professional on your site will make the entire transaction actually enjoyable, stress free and gives you the piece of mind you need in order to move on.
That leaves the question how you find the right Realtor for your? Not all Realtors are the same, just like every Roofer is not the same. So, how find the right one? Again, do your home work in advance, ask questions! How well does he/she know the area? How many properties have they sold there? Where will your home be advertised? Can they be reached at all times? Who will show the house? What if you don't want a lockbox? Are they serving as a single agent or a transaction broker? The best advice we can give you here is, Google their Names - if you can't find them online, how will potential buyers find your property? Check what their web presence is. The reason for that is, 90% of all buyers will search the internet first, before actually contacting a Realtor. Also, call a couple of Realtors, see if the answer right away, if not, how long does it take them to call you back? That will give you a good idea of what the buyers will experience.
Now you have decided to hire a professional Real Estate Agent - so what are the next steps? The first is always the negotiation of the commission, not always is the cheapest one the best. Remember "You get what you pay for" - just like your Roofer. You have to consider the time and money your agent will have to spend to sell your property. When you do sign the listing agreement, get a list of advertisement the Realtor will do for you. Check before, if those sites include his or her listings. Also get a list of things to do, so you will know step by step where you stand in the process. Also a list of "things to do" for yourself. Take the advice of the Realtor, who is looking at your property with the eyes of a buyer. Some of those things to do might include to stage your home, remove clutter and too many personal items. Start working on the outside and the entrance way. First impressions are vital! When showing your home, light some candles, put on some soft music. All those little details really do work!
Copyright (c) 2008 Anna Hensel
As of this writing (2008), the subprime mortgage rate meltdown has made homes a drag on the market; unlike three years ago, when housing prices were going up, and selling a home was easy, now you have to be a bit cannier about it.
Your three principle options for selling your home are selling it yourself, selling it with the assistance of a flat rate or discount broker, or selling it through a real estate agent, with a negotiated commission. Past advice was to tap into the then-current hot market and see about selling it yourself for a few months before trying to enlist the aid of a broker.
When looking into these three sales options, there are some basics you should do before engaging a professional or starting this journey. The first is market research. Look carefully at what home prices are really selling for in your area, and set your expectations accordingly. Look also at how nice the other homes in your area are; the nicer they are, the likelier it is that you can post a sale of yours.
The second are the basics of any home showing cycle: Put a fresh coat of paint on the exterior, clean up the house, remove clutter, and clean up windows. Make sure to fix whatever's absolutely broken before trying to sell the house, and try to present it in the best light possible. We know that's almost impossible with children in the house, but it's often times the difference between selling a home and getting passed over.
While it's still possible to do 'for sale by owner' home sales, it's gotten a lot less likely. If you're going to go this route, all the burdens are on you ? scheduling the showings, marketing the home in the region, and handling all the federal and state disclosures, title transfer and paperwork. Plus, you have to identify potential buyers, and differentiate between well and poorly qualified ones. If you do go this route and get to the point of signing papers, be sure to retain an attorney to look over the title transfer papers. When looking at marketing your own home, get three 'market comparisons' from experienced agents. They know what they'd sell the home for. Be up front with them ? if you're going to try to do an owner-sale, most will still help you. More than 80% of home owners who try to sell their own homes give up ? and in down housing markets, that's closer to 95%.
The big benefit of having a broker comes with the first and second issues mentioned in the last paragraph. You have to schedule all the showings, you have to do all the marketing, and those are tasks that take a certain number of hours per day to make happen. One of the reasons why brokers are generally worth their commissions is because you're paying them to do things you don't have time for, or you're paying them to do things that they can do better than you can ? like get the home out into listings, line up home buyers and show them multiple homes, and knowing the ins and outs of title transfer paperwork. All of these are exacerbated in a down housing market.
Your second choice is a flat rate or discount broker. Aside from the benefits mentioned above ? of paying someone else for their time and expertise, a discount broker can tap into resources you don't have access to, like the multiple listing services used by real estate pros. This one change can reduce sales times by half or more. While both discount and full service brokers have access to this service, the discount brokers generally charge less for them. Furthermore, a lot of discount brokers have a flat rate package (between $2,000 and $5,000, depending on services bundled) to help walk you through the federal and state disclosures.
Not all discount brokers are identical ? some are flat fee brokerages (as described above), others try to work as a full service broker, but charge a lower commission rate to stay on top of the market. While these (like full service brokers) are negotiable, you should remember that the broker is going to work as hard as they think they're going to get paid.
That last piece of advice is the key to getting a winning relationship with a full service agent. While some agents try to tell you that commission rates are graven in granite, the truth is that there's always room for negotiation. In general, the stronger the housing market, the more readily you can talk down commission rates. Full service brokers are exactly that ? you are, just like with any broker, paying a premium to use someone else's experience.
Should you be dealing with foreclosure, traditional methods of selling your home might not be the best way to facilitate the sale. You may not have enough available equity in your home in order to cover the fees of even a discount broker. And waiting for a few weeks, or even a few months, for your home to sell can have a major impact on both your credit, and the situation with your lender.
In scenarios like these, you should consider selling your home to a real estate investor. Real estate investors will often purchase homes from owners that are facing foreclosure, or behind on mortgage payments. Investors are also interested in homes that need to be sold fast, but perhaps require repairs or renovations in order to be sold using traditional methods. A reputable investor can work with you to sell your home with no commissions and no closing costs, saving time and money, and allowing you to move on.
If you are facing foreclosure, have multiple mortgages on your property, or are several payments behind on your mortgage, you need help fast. Vivid Properties is a group of real estate investors that specializes in buying houses from people like you. You'll receive a fair price for your property, and a simple, no-hassle closing with no costs to you.
Both Anna Hensel & Jeff Divers are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Anna Hensel has sinced written about articles on various topics from Sell Home. Real Estate Advise from your local Real Estate Professional in the Tampa Bay Area