FSBO Jane

I read this recent post at the Buy Owner Blog about home selling and thought it was worth pointing out here. The jist of the article is this: When your home isn’t selling, that’s not the time to get discouraged. It’s the time to get proactive.

Citing five tips for maintaining your can-do attitude this year, the article points out the best weapon you have in home selling: yourself.

Here’s a clip:

“In a slow real estate market, it’s standard for a house to be on the market for up to a year or longer. So instead of getting discouraged, change your game. Take it to the next level. There are always new tactics for home sellers to try, such as these five:

• Visit open houses in your town or surrounding towns. Act like a potential homebuyer and gain perspective on what else is out there, and how other home sellers are trying to spark the interest of buyers. Also, take note of what areas of the house you notice first, and remember this when it comes to your own house.”

Read the rest of the post here.

As a FSBO (for sale by owner) seller or buyer, the Internet offers an arena of information for you to acquire the tips and knowledge you need to be successful. But does it ever frustrate you when you’re trying to find an answer to a question, like the steps to making a bid, and all these realtor and agent websites show up? “We’ll do all the work for you” doesn’t exactly help when you’re trying it the FSBO way.

That’s why I find and save a multitude of FSBO blogs in my Favorites folder. And as you know, the Buy Owner Blog tops the list. This blog only covers topics that are helpful to FSBO buyers and sellers, with topics so widespread, you’re sure to find what you’re looking for. I almost always do.

Two recent blogs that I found to be helpful included one about how to accept a bid, as a seller, and one about how to make an offer, as a buyer. Each article covers the questions that a buyer or seller would have without help from an outside agent. But they also make it clear that the process is possible alone, and you’ll come out of the process with a lot more money and pride.

To check out these particular articles, read 8 Tips for Accepting a Bid and Making an Offer.

Homebuyers are always contemplating how much to negotiate the price of a house. This article from Inman News blatantly points out that the asking price is not the real price. Like with all things in life, whether it is a new big-screen TV or a new house, you have to intelligently negotiate the price.

First, you need to find out how many people are interested in the house. You can’t commit to a major negotiation if others are offering a higher price. Don’t bid a price that you can’t really pay. If the interest is high among numerous buyers, and the bids are higher than what you can afford, move on.

If you are the only one or one of few interested buyers, and a negotiation seems probable, do some research on a fair amount to offer. If the asking price seems high, research what other houses are going for in the surrounding areas. If no other houses are up for sale, search for houses that are close in size and similarity. Use this information to back up your negotiation.

The truth is, with real estate, few home sellers actually expect to receive their asking price, especially in this current market. A truly interested buyer is not someone that they’ll let easily escape, so be prepared to offer an intelligent negotiation. The idea is not to snatch the house out from under the sellers, but to negotiate a fair and reasonable price for both of you.

I recently came across a helpful article, which, though written last summer, has a lot of sound advice for buyers today. We all know buyers are leary these days, feeling a little unsure about buying something in the midst of a down economy and a real estate market that doesn’t seem to be rebounding.

If you’re a buyer, though, here’s what you should know: Buying a home right now could be one of the smartest decisions you can make. As long as you go into it prepared, heeding advice like the four steps from this article, you’ll take advantage of the market we’re in.

These are the four tips recommended:

1) Don’t expect appreciation.
2) Beware of negative cash flows.
3) Don’t overextend yourself.
4) Avoid overpaying for a property.

To learn more about these tips and the reasons behind them, visit the original article here.

In today’s market, you hear a lot of advice, some of it good and some of it bad. Some experts will tell you to sell your house and run; others, to buy more houses. One thing is true, though, no matter which way you lean: hard times present new opportunities, and it’s up to you to make the most of them.

I caught this recent article at the Buy Owner Blog: Why You Want to House-Hunt Now. It points out reasons that spring, historically, is a time for renewed interest in the market, which is good news for sellers and a big reminder to buyers who’ve been sitting on the fence.

What’s your take on the issue? Do you think this spring will keep up with averages? Will home sales be down… or up? Or does it all depend on local neighborhoods? If you were going to give one piece of advice to potential buyers, the ones who just aren’t sure what to do, what would you say?

What’s a “strong” neighborhood? As the saying goes, “Location, location, location!”

A premium location could be defined by the amenities that your community offers, the proximity to local beaches and fine dining or the numerous methods of commuting that are right down the road. But when it comes to hitting close to home, it means a strong, healthy community.

A recent article at MSN defines strong neighborhoods as those that “nurture safe, healthy families” and “keep real-estate prices stable.” In this market, what happens in your neighborhood is vital in keeping your home’s value high.

This article lists key points that create a bonding, nurturing neighborhood that anyone of any age should feel safe and comfortable in.

Here are some interesting points that I took from it:

• A healthy, strong neighborhood (good parks, schools; low crime) significantly increases the value of every home in that neighborhood!
• Ways to increase the connection in a neighborhood could include potluck dinners, block parties, neighborhood garage sales and public picnics at the park! Get creative!
• Food tends to always bring people together, right? Camp out in your front lawn while barbecuing and offer your neighbor a burger or a beer! If a new neighbor moves in, go ahead with the cliché of bringing over freshly baked cookies. This small gesture can warm the hearts of all.
• Hang out in the front of your yard instead of the back. Many homes contain front porches, front lawns or at least driveways and garages to set up lawn chairs. By spending time in front of your house, neighbors are more apt to communicate with you!
• Enjoy writing, like me? Start a neighborhood newsletter! Stay updated on who lives where, what activities are coming up and any exciting tidbits that neighbors offer up! (Make sure to include everybody in these fun little tactics.)

Many more ideas are available here.

According to the article, it’s important to keep safety and kids in mind, while not leaving anyone out. Have fun with it, and most importantly, talk it up when trying to sell your home!

When I talk to home owners who are ready to sell, I go over the same basic information with them, emphasizing that advertising is #1 in terms of priority. If you can’t get the word out about your home, you might as well hunker down for the next year or so - no one is going to buy it. And I mean that.

Beyond 1) NOT ADVERTISING, what are some other surefire ways not to sell your home? Well, I’d say any of the following will get you home overlooked and ignored:

2) MAKING IT HARD FOR BUYERS TO CONTACT YOU: Wherever you choose to advertise, it’s imperative that your phone number or e-mail address be listed and that they be working addresses/numbers!

3) BEING INFLEXIBLE ABOUT SHOWINGS: Now is not the time to be stubborn. Try to work around the buyers’ schedules and do your best to be accommodating.

4) NOT MAINTAINING CURB APPEAL: First impressions count, and you only get one chance to make yours!

5) LEAVING A MESS INSIDE: Today’s buyers are looking for move-in-ready, so that’s what your home needs to be. Get everything clean and organized - it needs to be easy for them to imagine living there!

The University of Illinois at Urbana-Champaign just recently created a very helpful website for people going through tough financial times right now. It is so needed! They offer advice on how to cut everyday costs, how to relieve stress after a job loss, and lots of helpful ways to reduce costs in your home or how to deal with foreclosure. If you feel like you aren’t too knowledgeable in that area (most people are unfamiliar with their homeowner or rental rights and how a foreclosure process works) then you should definitely check out this website.

Here are some samples of their advice that I found to be the most helpful advice for homeowners:

*Definitely talk to the people you pay your bills to. Whether it is a landlord, a lender or a utility company, it’s always a better idea to discuss your current situation than to just fail to pay a bill.

*When talking with these people, have a financial plan ready. Show them how you plan on cutting costs and that it will be possible for you to pay this money at a later date. Believe it or not, this way is easier for them too than putting together a foreclosure!

*If you can’t pay your mortgage for months to come, plan ahead. Move in with family or friends in order to save on energy bills and food. Move to a cheaper home and rent your current home out for extra income. This site offers tons of ideas!

*You can save on insurance costs by making little changes like installing security systems. The same goes for utility costs.

*Check out all the advice this website offers by clicking here.

As working adults approach their golden years, one thing seems to stand out: we want to retire. To be honest, I remember feeling that way in my thirties. (Yes, that early!) I wanted to enjoy life a little more. That—enjoyment, I mean—is essentially what retirement promises. For me, a semi-retired state came much earlier than I’d expected, largely thanks to the FSBO way of real estate that I discovered while busy in my real estate career (and the great people at BuyOwner.com, who helped me save a bundle!).

But for you, preparing for retirement may involve different steps. You may need to have a certain-sized nestegg, pay for your kids’ college education or get rid of lingering debt first. Whatever the case, at some point, whether in your thirties or your eighties, it will be your time.

If you’re at that time now, or even if you just like to dream about it, what are your plans? Where will you retire? Will you live in one place year-round or transport between climates? Will you buy a simple condo or a fancy estate? What are your dreams, and what can you afford?

I’ve compiled a list of the top five things you should look for in a retirement destination, based on my own experience and the experiences of my friends. If you have any thoughts to add, please do so!

1. A Place Worth Enjoying: Unlike your working years, retirement affords you a lot of free time. Wherever you choose to spend that time, then, should be filled with opportunity. If you love the beach and could see yourself spending afternoons lounging by the ocean, Florida might be right. If you like the desert, Phoenix may be up your alley.

2. People to Enjoy It with: If you’re retiring with a significant other, make sure your retirement destination appeals to both of you. If you’re retiring alone, and companionship is important to you, you might want to look into an active adult community filled with activities and clubs to join.

3. Affordable Prices: Look, even if you’re a millionaire, you want to get the most for your money, don’t you? Compare the costs of living in different cities that interest you. What’s the average home value? What are taxes like?

4. Natural Beauty: It’s true that this may be specific to personal preference, but there’s something to be said for gorgeous views and fresh air. It’s why people retire to beautiful locations: leisure time works best against a stunning backdrop. It’s just a fact.

5. Location: I mean this last point solely in relation to your needs. Will you want to see your family or loved ones often? Do you have grandchildren that you’ve always been near to? If so, factor the costs of traveling into your move. If the distance will be too much of a strain, look for a location that would work better.

Photo: Ilovetrees

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