The biggest question is, "Are we in a bubble, and ready to crash?" No! With such a deficit in needed homes, coupled with low-interest rates, we are not seeing a crash anytime soon. Current
HOME FOR SALE BY OWNER----BEWARE!!
Dated: November 9 2019
HOME FOR SALE BY OWNER, Beware!!
I was recently reading a Facebook thread where agents were asking how they could assist or convert a “For Sale by Owner” to an active listing. For sale by owner affectioning referred to as home being sold by the homeowner who is not really wanting to work with agents. Some do. Some don't....
One person piped in and stated that Real Estate Agents don't do anything but mount a sign and cash an oversized commission. The responses from controlled and unhinged agents were epic. Like the black plague unleashed in biblical proportions, she is probably in some kind of witness protection program now.
I believe the unwitting person sharing her perspective was just not smart enough to know how dumb that statement was. We don't know, what we don't know. Right!?
I didn't think much about it until I was going through my voice messages for the day to make sure I didn't miss any details that needed attention. After listening and thinking out loud, “Mount signs and cash checks!? Not Even!!”
Many agents do many things, but I will just keep to what I do.
When I have a Buyer call, the first step is to see if they are qualified, or have they ever talked to a Lender.
So like most agents, I connect potential Buyers with Lenders. If they are ready to go, I get their 5-25 must have's and start a search for the best home and become a master mapper and scheduler. Drive from home to home and then when the ONE hits their heart, the real work starts to make an offer with a dozen parameters controlled by the specific loan and if it works for the home they want to make an offer.
Right there, with the Offer is a key document that all licensed realtors use. REPC, or Real Estate Purchase Contract. As a For Sale by Owner, you are risking so many areas for it to go into litigation not using a Licensed agent and his knowledge of this document.
The Real Estate Purchase Contract is a list of checks and balances to protect Buyer and Seller, and lines out performance dates that all parties sign onto to do in a timely manner. It also states consequences if one or both sides don't follow the agreed contract.
With a “For Sale by Owner,” every look-ee lou could be casing through your home, walk-in without prequalification. An experienced agent won't even put a potential Buyer in their car until they know they are qualified and ready to buy, and not waste everyone's time.
What is the Offer price and how much is the Earnest money? When is the Earnest money non-refundable? What comes with the house and does the Buyer have to Sell their home first to purchase yours? You better know or your wasting more time.
Are there any Leins or unpaid Hoa fees tied to the home? Back taxes? What if there are repairs that need to be done before the bank will lend? Who pays? Who repairs?
What if the Seller isn't honest in the Property Condition Disclosures about the home or misses something costly, and what recourse does the Buyer have?
What if the home doesn't appraise for the price listed? Can you save the deal and how?
What are the rights of the Buyer to cancel?
What are the rights of the Seller to cancel?
What penalties are leveled to the party that doesn't complete the transaction as agreed by both sides?
Agents monitor and keep both parties inline to complete Sellers Property Condition Disclosures, Due Diligence, Finance & Appraisal and then Settlement deadlines.
The REPC outlines all of this and explains in detail if the Seller or Buyer defaults. Plus there are over 40 other Real Estate documents and potential Addendums to an Agents disposal to navigate nearly every scenario that could come up.
And this is only the tip of the iceberg in the negotiating arena where agents are trained to produce a smooth and uneventful transaction. Unlike For Sale by Owners where 87% end up in Litigation.
My point is not to tell you why you shouldn't sell yourselves. But if you are in the same position to think that Real Estate agent doesn't do anything, think again.
From the beginning to negotiating the offer with another skilled negotiator to get the best price, to work out home repairs and have the resources and subs at your disposal to do them.
Where trained agents work with each other it takes out the emotion of it all when you receive a low ball offer on your beloved, green shag carpet, popcorn ceiling, an outdated home that has history. Let's face it. Talking about someone's home is next to dissing their kids. An agent doesn't get offended or emotionally warped over someones else decorating décor, snubbed by a potential buyer. They have done this hundred of times and work through it to get a win/win with all parties.
I can't tell you how many times I and the other agent saved a deal that if the Buyer and Seller were directly involved would have ended up on the 5-0, clock news.
Then there are the things that are not listed as an Agents responsibility. But if you are like me, I have the attitude there is NOTHING that is NOT my Job!
What about many of my Senior clients that need extra help because they have no one else or the anxiety of such
a task to pack and move is overwhelming. Sometimes just extra moral support will make a world of difference. Picking up extra moving boxes and supplying names of reliable movers and home cleaners make the difference of a home run agent loved and referred to many, as opposed to the turn-and-burn agents who are already on to the next deal.
I have included a short video https://youtu.be/oNBeWZHt4g4 and audio of going through my messages where working on the final details of substantial completion with a client who's new Construction is wrapping up.
Another agent who is sending a repair addendum on items that the buyer wants repairing.
The other messages where my electrician is calling with an update to an electrical issue and a roofer giving me his assessment of the roof tiles and repairs.
Also, my Sellers wanting updates on closing and final documents from Title and coordinate the Seller moving out and the Buyer moving it.
Maybe there are some agents that do the minimal. Not me. My business is run by repeat referrals and friends that know I get my hands dirty and assist in all the details of Buying, Selling, or new construction.
A good Realtor will be a life long friend. They understand the entire scope and stresses of the buy and sale process. Do your research, interview and get referrals from your family and friends.
Your Realtor will be your best investment.
Oldest of 6 kids, Born & Raised on the Oregon Coast. Stayed in Oregon until 19 years of age, Graduated high school there and then served a LDS Church mission in San Diego for 2 years. Returned to San ....