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Real
Estate Selling Methods
In today's market you need a REALTOR
that is both aggressive and flexible. You need a full service
Real Estate company that understands the market and can give
you accurate and up to date information in order to help you
make the right decision about selling your house or property.
For Sale by Owner (FSBO) - Most home owners at first
don't realize what their up against when selling their own
home or property. The first big hurdle is correctly pricing
the property. In many cases FSBOs are sold under value and
the owner gives away considerably more than they would have
paid in a commission. I know of cases that homes were sold
for $100,000.00s less than it was worth because the seller
was taken advantage of by unscrupulous clever investors. The
second is qualifying potential buyers, knowing they can afford
to buy the home in the first place.
One of the first things you will notice is how many buyers
want you to finance the home and what you will charge them
for monthly payments. That's usually their first question.
That's because 90% of buyers that try to purchase a FSBO are
not qualified to buy a house.
One other thing to consider is, are they really interested
in buying the home or just casing the place so they can come
back later and rob you. The third thing to consider is if
you do find a buyer then you have to write up your own contract
and if the contract is not executed properly, it can leave
either the buyer or the seller in a predicament they don't
want to be in, then who do you call.
95% of all homes sold in America are sold by Realtors and
90 % of homes for sale by owner in the first thirty days switch
to using a Realtor. One reason to consider is that REALTORS
produce 95% of the buyers qualified to buy a home. So do you
want a 95% chance to sell or do you want a 10% chance to sell
your home.
Properties that are priced at fair market value within
3% sell in 30 to 45 days. If your home is priced between
3 to 7%, 60 to 90 days over that, who knows.
A Real Estate agent that takes a listing at an above market
price or inflated price just to get the listing, or as its
called in the business buying the listing is not doing the
seller justice, as the property sits longer and longer the
agent will keep coming back telling the seller that he needs
to reduce the price. The home has missed out on the initial
excitement and the first money and in the auction business
we have a saying your first money is your best money.
When potential buyers look at how long a property has
been on the market they lose interest or they think something
is wrong with it. Then you have to lower the price and put
it in a different market, in order to attract new buyers that
were looking in a lower price range. When people search they
do so with in a price they feel they can afford. If you have
over priced your home or property people will pass on it.
They want the most home for the money. If your home is priced
at the high end of a range but competes with other homes that
are larger or have more amenities your home will go stale.
Then you have to lower your price to attract buyers in a different
price category that have not already seen the listing.
You need a REALTOR that knows the fair market value of
your home or property and can assist you in correctly
pricing your home. (For more information watch the video by
clicking on the video link) Remember you only get one chance
to make a good first impression.
Discount realty is not full service - If you list
with a discount broker at 2% he will only put the listing
on there company web site and service is limited. In order
for a listing to be put on the MLS the listing broker must
split the commission with a buyer's agent. Lower splits do
not leave enough commission to cover proper advertising in
trade magazines, newspapers, flyers, MLS, multiple web sites
etc. Consider one small classified add in a news paper runs
$400.00 + a week. So the exposure to your property is very
limited. Service is another area that generally is lacking
in discount realty. If you run into problems the amount of
time a discount broker is available to help you overcome these
hurdles is very minimal or nil. So in other words you get
what you pay for.
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