FSBO Jane

This post is especially for you first-time home buyers (or would-be first-time home buyers). Sometimes the best thing is to be able to hear the stories of someone who’s gone before you, right?

Enter the Johnsons.

This artist couple blogs over at ReadyMade about the entire process that led them to buying and now owning their Victorian home in California.

Interesting read. Go check it out!

Image source: ReadyMade.com

A few weeks ago, I came across a great article at FrontDoor.com, entitled They’re Just Not That into Your House. It made me laugh, partly because I’d seen the movie with some girlfriends a few weeks ago and had had similar thoughts myself but also because the writer explains the parallels so well.

I’ve often said job-hunting is like first-dating. Well, so is home-selling. Every potential buyer, every attempt to woo them—it can feel like continual rejection or, worse, a spark that turns out to, well, be just the opposite.

In Geoff Williams’s article, he points out that this isn’t something to take personally. Just as in dating (or job-hunting, I’d add), you’re going to meet potentials that don’t work out. That’s part of the process.

Anyway, it’s an interesting, encouraging, funny read, and I’d recommend anyone selling a home (or wishing to) to read this piece.

I just came across this list, good for a laugh. It’s not original to me, but I have to admit I’ve thought a lot of these things before. What do you say?

Here’s what real estate descriptions actually mean:

Spacious - average
Charming - small
Comfortable - very small
Cozy - very, very small
Low maintenance - no lawn
Walk to stores - nowhere to park your car
Prestgious - expensive
Bright and sunny - venetian blinds not included
Townhouse - former tenement
Modern - 30 to 40 years old
Contemporary - at least 15 years old
Sprawling ranch - inefficient floor plan
Natural setting - forget about planting, the deer will eat everything
Secluded setting - far away
Executive neighborhood - high taxes
Near houses of worship - fanatical denomination next door
Park-like setting - a tree on the block
Unaffected charm - needs painting
Starter home - run down
Hurry! Won’t last - about to collapse
And much, much more - nothing else comes to mind

Have you read Freakonomics? Are you familiar with the chapter that shows a parallel between the tactics of clans like the KKK with the practice of today’s real estate agents?

Consider this interesting clip, about a real friend of the author’s:

“K. wanted to buy a house that was listed at $469,000. He was prepared to offer $450,000 but he first called the seller’s agent and asked her to name the lowest price that she thought the homeowner might accept. The agent promptly scolded K. ‘You ought to be ashamed of yourself,’ she said. ‘That is clearly a violation of real-estate ethics.’

K. apologized. The conversation turned to other, more mundane things. After ten minutes, as the conversation was ending, the agent told K., ‘Let me say one last thing. My client is willing to sell the house for a lot less than you think.’

Based on this conversation, K. then offered $425,000 for the house instead of the $450,000 he had planned to offer. In the end, the seller accepted $430,000. Thanks to his own agent’s intervention, the seller lost at least $20,000. The agent, meanwhile, only lost $300–a small price to pay to ensure that she would quickly and easily lock up the sale, which netted her a commission of $6,450.

So a big part of the real-estate agent’s job, it would seem, is to persuade the homeowner to sell for less than he would like while at the same time letting the homeowner know that a house can be bought for less than its listing price.”

I’ve said it before: Buy Owner delivers on their promises in a way no other FSBO company has done for me.

Last night I was talking with a friend of mine who just closed on his first FSBO, which it just so happens he used Buy Owner for. In the beginning, he’d priced a little high, so he had a total of two calls. After listening to my advice, though, he lowered his price and saw a lot of feedback.

I asked him if he’d like to comment on the experience here. He e-mailed me this when he got home last night. From Gary:

“I’m really happy I went with Buy Owner because they got me the exposure I needed. More than that, they held my hand by showing me what to do. From virtual tours to in-depth descriptions, the advertising met my needs and then some. I have no complaints and would definitely use Buy Owner again!”

Thanks for sharing, Gary!

I just got off the phone with my cousin, and she was telling me that her daughter is looking for a job. The daughter (K) just finished a summer trip to Europe, where she backpacked through France, Spain and Italy. It was very exciting, I’m told, and pictures are coming soon. K has a degree in a Liberal Arts field, and she’s unsure of her future career goals. Right now, she just needs something. I remember how that was.

K is spending today registering with a variety of staffing agencies, hoping they’ll have the connections she needs to get placed somewhere. I asked my cousin what her other strategies were.

“None,” she told me. “She’s just betting on these agencies.”

I told my cousin what I would tell anyone in that situation: that’s just plain stupid, and I hope she tells K so. Why expect someone else to find the job for you? Job-seekers need to get out there, be sending resumes proactively. In a staffing agency, lots of people are competing for those jobs, and the agency is getting a cut of the salary (a cut the company can afford and that you should be getting!).

It hit me a few weeks ago how similar staffing agencies are to real estate companies. Both pride themselves on having the inside information. Your staffing rep will find out about jobs that meet your criteria, tell you about them and give you a chance to interview. Your real estate agent will find out about homes that meet your criteria, tell you about them and give you a chance to view them in person. Sounds good, right?

Well, sure. Good, that is, if you’re OK with waiting until the rep finds you something, OK with having to settle for something–anything–because the rep tells you you should, OK with paying a big chunk of money to this rep for doing the dirty work for you.

I’m not OK with that, and you shouldn’t be either. You, as a thinking human being, have the ability to search classifieds, be proactively searching, putting the word out and networking. Whether you’re buying or selling, you have the ability to be your own agent.

The longer I am involved with real estate, whether it’s through buying/selling myself or through discussing issues with students, friends and family, I see how common certain fears are.

These concerns are normal for first-time buyers, especially. However, even veterans can get nervous when certain problems arise. Here is my list of the most common fears and my responses on how to deal with them:

TOO MUCH INFO

When you’re in the market, you may feel like there are a million things to know about before making a commitment to buy. And every one of your friends is suddenly an expert, telling you exactly what you must do. Take heart: everyone’s been new at this before, and everyone’s felt a little unsure about the market. Try to remember that the more information you have, the more in control you will feel. Absorb the advice and then follow your gut.

TOO EXPENSIVE

You’ve found the house of your dreams, but its price tag is way too steep. You’re discouraged, thinking you’ll never find one in your budget. This is normal. I say, Try expanding your horizons a little: put the word out to your friends, visit more online sources, consider a different neighborhood or try to let go of certain requirements. There’s a house out there for you; don’t worry.

BIDDING TOO LOW

Maybe you want to make an offer on that pricey dream home, but you’re afraid to make an offer because it’s low. If you’re really interested in the home and you are making a fair bid, go for it. The worst thing that can happen is that the seller says no. Most likely, they’ll counteroffer. If they don’t, at least you tried.

UNSATISFIED WITH AGENT

People often feel they should go with a realtor when they’re buying a home, as if the realtor has secret knowledge of properties that are newly on the market. Let me burst that bubble: go online, review listings, call buyers. It’s that simple. All your agent would be doing is looking through the homes for you, telling you which ones meet your criteria. You can do that! Ditch the agent and look on your own.

TRAPPED IN PAYMENTS

Once you purchase the home, you’ll be locked into monthly mortgage payments, and you’re not sure you’re ready. What if you get fired or sick or transferred? It’s good that you’re planning ahead. Now take that fear and transfer it into something constructive. Start setting aside money for emergency situations. Then, if a crisis arises, you’ll be prepared.

I’ve spent a lot of time here posting about disappointments I’ve had with FSBO companies. Today, I want to tell you about the company that met all my expectations and then some: Buy Owner. A while ago, I posted about the things to look for in a FSBO company: Buy Owner provided every one. I have not a single complaint about their service.

In addition to quality photos and text, I was looking for: attention to professionalism, a website with a large readership, ads that bring buyers to me, available customer service and assistance with getting the right buyers. Again, Buy Owner did all these things, too.

SUPERIOR PHOTOS/DESCRIPTIONS
If you use a good FSBO company, you should be getting assistance with marketing your home–including stunning photographs and great descriptions. Let’s face it, you’re not a photographer. I know I’m not. So why would I trust myself to take the best photographs? Buy Owner sent over professional photographers to take showcase-worthy pictures. The same goes for descriptions. Ok, so maybe I have some writing ability. But not everyone does. Buy Owner had their professional writing staff create my properties description. Not just four lines of text saying “great view”, they wrote a multi-paragraphed indepth description of my property.

VIRTUAL TOURS
The photographers go through these pictures with you, including virtual tours, to make sure you’re happy. Buy Owner also uses professional writers to create clear, feature-filled descriptions of properties. The rep I met with took very detailed notes about every aspect of my property-from the floors in my kitchen to what shopping malls were nearby.

EXCELLENT WEBSITE
Plus, Buy Owner’s website is the best I know of. Their marketing campaign includes national television commercials, frequent billboards and other things to bring millions of people from all over to their site. These visitors look for properties–your property–meaning that the buyers are coming to you. Of course, I still marketed my home, too: that’s the FSBO way. But Buy Owner made everything simpler, easier and better.

ADS THAT BRING BUYERS TO ME
Unlike byowner.com and some other disappointing FSBOs, Buy Owner puts your phone number up with your advertisement. They’re not trying to steal interested parties, getting them to buy a more expensive property like a real estate agent does. They have every reason to make sure you sell YOUR home.

Also, unlike other companies, Buy Owner doesn’t squeeze tons of ads into one spot. Your ad is your ad. You have your own section in the magazine and your own page on the Website. You also won’t see Google ads popping up all over.

AVAILABLE CUSTOMER SERVICE
The people I dealt with at Buy Owner were always helpful and on top of details. If I called with a question or to update something, they got it done right away, helpfully.

INFORMATION OVERLOAD
Your ad with Buy Owner contains so much information that it really works to prequalify interested parties. What do I mean? When your advertisement gives tons of quality photos, virtual tours, detailed community information, room dimensions, lengthy descriptions, square footage, features, listed schools in the area and more, the buyer looking at your ad has all the information to know if they’re interested. A simple listing in the newspaper may bring a few calls, but of those few calls, the majority will be calling to find out if they’re interested; not because they’re interested.

TOOLS FOR YOU
Buy Owner has a special section for sellers that gives you statistics on your property’s activity online. It also allows you to print flyers, add photo captions, schedule open houses and more! The seller tools give you control over your advertising.

A really great feature of the seller tools is that you can pause it. Right after I started my ad, I had a family crisis to take care of. I was able to put my advertising on hold until I got back–there’s no time limit at all. When I called Buy Owner to ask them about pausing my ad, they told me I can do it online myself, or they can do it for me. They also said that the property is listed until its sold… so no matter what the real estate market is doing, you’re covered!

STEP BY STEP GUIDANCE
Once I found a buyer for my property, I called Buy Owner. They put me in contact with their transaction team who offered to help write up the contract. As an ex-real estate person, I didn’t really need the help, but hey, why not: One less thing I have to do. They also told me about their title department and how they could assist me with the closing. It was then I realized what they said was true, start to finish, Buy Owner is there to help. I know a lot of people who want to sell their homes FSBO are scared of the contract and title part of the process. Its normal, but you’re not alone. Unlike other services, Buy Owner was there to help, whenever I need them.

From beginning to end, each transaction I had with Buy Owner was smooth and successful. I have no complaints!I highly recommend them, and I always tell my real estate classes this. My students are surprised to hear someone so passionate about a FSBO company, but trust me: this is for real! Don’t take my word for it; try Buy Owner and see for yourself. You too will be saying Thanks, Buy Owner and you’ll be hooked on the FSBO way.