FSBO Jane

Given the current market’s status, many Americans are wondering what to invest in. Is the stock market safe? Are banks? Does it make any sense to still consider real estate, especially with all the trouble in mortgages and the high rates?

According to a recent interview R. Donohue Peebles gave to Wall Street Journal’s June Fletcher, now, more than ever, real estate makes sense. Here’s a clip: 

Q: Under the current scenario, should you liquidate stocks to invest in real estate?

A: I have no money in the stock market. It’s too volatile, and it hasn’t had a leveling. If you have patient money, real estate gives you the ability to ride out bad times.

R. Donohue Peebles is Head of the Peebles Corporation, a Coral Gables, Fla.-based real estate investment and development firm. Read the rest of his interview here at WSJ.com.

It’s a common question facing many homeowners in today’s market: When your home isn’t selling, what should you do? You can get the word out, improve your curb appeal, update your advertising… but at the end of the day, a bad market is a bad market.

Your basic options are simple: (1) Keep waiting, possibly lowering the price (2) Take your home off the market & rent it instead or (3) Give up.

Option #1. Keep Waiting

Even in the face of plunging home values and an abundance of listed for-sale homes, many homeowners today remain blithely unaware of the realities. Of course, it’s always possible that the right buyer will come along. But leaving a property listed at a too-high price (too high = not similar to competition) means almost certain failure.

One of the smartest ways to grab buyers’ interest is to lower your home price. Let’s face it: buyers are just as worried about losing money by buying your home as you are in selling it. They are aware of the market’s leanings, so they’re not easily swayed into a big purchase. Knocking your price way down may be the best (if not only) way to get their attention.

Leaving your price as it is, waiting for the right buyer, may mean waiting for a very, very long time. Especially as many of today’s experts don’t expect home values to return to normal before 2010.

Option #2: Rent Instead

The obvious negative with this scenario is that you still own a property that may continue to decrease in value. Additionally, you’ll have renters to manage, and any problems/damages will be yours to deal with.

But there are also big positives: Renters can often compensate for your monthly mortgage payments, if applicable. They also can cover all utilities, meaning bills you will be freed from, at least while they live there. In a rough housing market, people will still need places to live, and, if people aren’t buying, they’re certainly renting. This is a good option if you’re looking to ride out the market and recap some of your losses. When things pan out, you can try selling again.

Option #3: Give Up

If you don’t have to move, you can keep living in your home while you wait to determine your next move. You could wait a year or two and try to sell again, or you could just decide to forgo moving altogether. Sometimes, realizing buyers don’t love your home as much as you do can make you want to keep it.

Whatever you decide, it’s important to weigh all the factors together carefully. Being informed about the market is the best way to equip yourself to make a wise decision.

“When Russ and Patty Hageman built in Princeton two years ago, their house was both a dream home and a great investment. Then gas prices doubled, food costs soared, and though they’d never missed a payment, they’re now two months behind.

‘This is not in our character to do this,’ Russ Hageman said. ‘But we have no real option.’

Their only choice, he says, is a short sale, selling the house for less than what they owe. Valued at $274,000, it’s now listed for $189,000, and most of their neighbors are doing the same.”

You can read the rest of the story here, at Minnesota’s Kare11.com.

It’s the story of many homeowners today, unforunately, who are either holding on to properties longer, renting out paid-off homes or selling for less than their homes are valued.

 Reading through the real estate articles on Yahoo!, I came across an article where just one paragraph jumped out at me:

“Advertising for an average agent costs almost up to $1,000 per month and can be much more. Just two real estate magazines’ page ads run over $400, and sellers always want their houses in print. And then there are the costs of signs, lockboxes, Web site fees, any kind of print media and mailers, etc. In our area, we are rural, and many of our homes here sell under $150,000, so these numbers are not a far stretch.”

This is why I have become such an advocate of Buy Owner! Rather than paying for a whole year’s worth of advertising month by month by month, you could choose an affordable advertising package on Buy Owner and pay a flat, one-time fee! Your listing stays on the website until the house/condo has been sold! Of course, it is up to YOU to show your own home, but you don’t ever have to pay a ridiculous amount of money to constantly advertise your property month after month. And if you want changes made to your text after a day, a month or a year, the writing department will be happy to do it, free of charge!

1. Oak and Maple and Pergo, oh my!
Hardwood floors give the home an elegant feel, while allowing for easy clean-up. They also let buyers add a decorative touch and extra comfort to any room with an intricately patterned throw rug. For those penny-savers, Pergo flooring boasts the same look and feel for less!

2. Included Appliances
Life is made a bit easier when appliances are included. Whether it’s a refrigerator and a microwave in the kitchen or a washer and dryer in the laundry room, a buyer is sure to be pleased with the appliances you leave in your home.

3. Pre-Organized Walk-ins
Walk-in closets are becoming somewhat of a standard, especially in newer homes. People are always looking for places to store clothing, seasonal items and everything else they have accumulated over their lifetime. Built-in organizers make the deal even sweeter!

4. Bright Lights
Lighted ceiling fans with remotes are great selling points. Decorative chandeliers that hang in the entry way and over a dining room table also appeal to a buyer. Especially if there is a lack of windows, lots of light fixtures brighten the home and give it a more comfy and cozy feel.

5. Water Works
Depending on your location, swimming pools and hot tubs add tremendous value to your home. For example, in snowy Chicago, a hot tub may be the most appealing. However, in sunny Orlando, a swimming pool is the best way to beat the heat. And don’t forget about the inside of the house! A Jacuzzi tub in the bathroom is very relaxing.

6. Phenomenal Fixtures
If you want an updated look in the kitchen, add new fixtures! Installing brand-new hardware for cabinets is an inexpensive way to dress up your kitchen. You may also want to look for ornate faucets for the bathroom sinks and tubs, as well as new shower heads. It’s the quickest way to give your kitchen or bathroom a makeover!

7. Fireplaces
Even if you live in a warmer part of the country, you are bound to experience some chilly nights. Fireplaces add flair to a room and they provide warmth on a cold night. The soft glow emanating from the intimate flames also gives a room just enough light! Whether its gas or wood-burning, stone, brick or tile, single or dual-sided… buyers are sure to be impressed!

8. Finished Basement
Some people may like the idea of fixing up an unfinished basement, but who wouldn’t like that the work has already been done for them! Finished basements offer new homeowners an extra place for storage or another space to entertain guests. Some notable features of finished basements include a spare bathroom, a laundry area, access to the backyard or a built-in wet bar!

9. Open Yard
Even if it is completely surrounded by a privacy fence, an open backyard is a true find! When you have a covered lanai or an open-air patio and additional land to boot, what else could you ask for! The land is especially worth while if there is plenty of space to add a swimming pool or a few storage sheds. Outdoor entertaining will be very easy, as well!

10. Turnkey Homes
Finally, if your home is in turn-key condition, the buy might be inclined to move in right after the showing! The living room comes with comfy couches and a stunning wood coffee table. The dining room boasts a full table set and a huge hutch. The master suite contains a king-sized bed and a dresser set. Not only does selling your home in turn-key condition allow you to sell the property for a bit more, but it also tells the buyer, “We’re ready to move out as soon as you want to move in!”

Still not convinced that selling your home by owner is the way to go? You’ll want to check out this study from Consumer Reports. 

According to this study, which evaluated the relative effectiveness of selling FSBO listings vs. those listed with an agent, “[Most of the] respondents who sold with the help of an agent received $5,000 less, on average, than their original asking price.”

The same study concluded that “Almost all of the 17 percent who sold their homes without an agent said they received about what they originally asked.”

What does this mean? Once again, it’s a reminder that now more than ever, it’s smart to be thinking about going the fsbo route for a home sale. In a down market, you can’t afford to throw 6% of your home’s value to an agent.

Selling your home yourself allows you to price your home more competitively, because you don’t have to compensate for agent commissions. That makes it better for you and the buyer.

Source: ConsumerReports.org

 Not everyone can afford to make a high six-figure investment. So rather than purchasing an entire apartment building or a complex of condos, why not invest in a vacation home? Buy a home — away from home — that can be a home for someone else, too! Vacation homes are worthy investments. Here’s why:

1. Your own getaway: Whether your vacation home is in the next state or half way across the continent, you will always have an extra place to go to where you can just get away from the stresses of every day life! No more driving to bed and breakfasts or flying to five-star resorts. You might even be living on a lake, next to a ski mountain or right on a beach! You’ll get to take a trip without ever having to rent another hotel room.

2. Extra income: While it may be costly to first invest in a vacation home, you will reap the benefits. If you are not retired, chances are you will not be staying at your vacation home all year long. Don’t waste that empty space! Make some money and rent out your cottage/condo/house! There are tons of services that specialize in vacation rentals. All you need to do is to investigate, choose a service and list your house!

3. Renter Perks - space and convenience: Renters are especially thrilled to stay in your vacation home for the weekend because of all the space! They don’t have to be cramped up in a small hotel room. Some houses have a bathroom for every bedroom! There’s even a living room, a kitchen and maybe even an extra family room. Getting a house near a beach or a lake is an added bonus. Renters will love the easy access to the water when the weather is warm. The same goes for the snow lovers. If the mountain is just a few minutes from the home, there’s no need to pay to ski at the expensive resort!