Facts About FSBO’s & Reasons to Hire an Agent Instead

As you’ve been driving around, I’m certain you’ve come across a few For Sale By Owner signs either in the yard or in the windows of some homes. These homeowners have decided to forgo the use of a real estate professional and attempt to sell the home themselves. Unfortunately according to the National Association of Realtors, FSBO’s accounted for only 8% of home sales in 2014 and the average purchase price of a home for sale by owner was $210,000 compared to $249,000 for agent assisted sales.

The process of selling a home can be an overwhelming one especially without the right knowledge and training that a real estate professional has. Here are some reasons why hiring a Realtor is something to consider before you stick that sign in your yard.

They Know How to Properly Prepare Your Home to Be Marketed

It’s important that your property is show ready as we’ve already discussed. FSBO’s don’t have the first hand expertise of a real estate agent who sells homes every day to know what works best for their home.

They Know the Qualified Buyers

Real estate agents spend countless hours with potential buyers and know what to look for in a qualified buyer. FSBO’s could be showing their home dozens of times to people that are just not ready to buy or can’t afford the price range.

They Get the Extensive Marketing Necessary

For Sale By Owner’s top marketing tools are their Yard Sign and Word of Mouth by Friends/Family when in the market, the top tool buyers used for finding a home was actually through a real estate agent themselves. Real estate agents are able to use their local MLS or Multiple Listing Service to market the property to all agents in their area. They also have the opportunity to share that property exclusively with agents at their brokerage. You can’t sell a house that people don’t know is for sale!

They Know How to Close the Deal

Real estate agents go through training on the escrow process and paperwork necessary to complete a real estate transaction effectively. FSBOs are not always prepared for the legal and financial stress of actually selling their home. Yes, you’ll save on commission, but you certainly won’t save on headache. Having the time and knowledge of paperwork and inspections to close the deal may be way more than a Seller bargained for.

They Save/Make You More Money

Now, the most common reason FSBO’s try to sell the home themselves is so they don’t have to pay a real estate agent, but if you saw the average sale price for a For Sale By Owner vs. Selling with an Agent was $39,000 less with the average commission of the $249,000 being only $7,500! You’re still making over $30,000 more than you would have without an agent! In combination with all of those reasons above, you could be finding the most qualified buyer by having a real estate market your property and negotiate on your behalf! You’ll save in any legal troubles with paperwork and you’ll probably be making more money and saving time.

These are just a few of the reasons why having a real estate agent will be much easier on your wallet and your time in the long run.

Making Your Outdoor Area Better Than Ever

Are you sick of the sight of your garden? Do you wish you had a better looking outdoor space? You can achieve whatever you want to achieve with your garden with the proper planning and help. Here are some of my favorite tips to make your outdoor area look better than ever:

Create a Pinterest Board

First off, start by creating a Pinterest board, so you know exactly what you want. You can refer back to this when you need inspiration, and you’ll never run out of ideas. If you just start doing your outdoor area without really knowing what you definitely want, it could end up a mess. An expensive mess. Make sure you make something to keep you focused on what you want it to look like and you’ll end up with something you’re really happy with.

Plant Flowers You Can Actually Maintain

Instead of planting your favorite flowers, choose varieties you can actually maintain. If you just plant any flowers and it turns out you haven’t got the time for them, it’ll be a total waste. Do your research so you know what will be in season, and how to care for them.

Get Some Privacy

It’s always nice having a bit of privacy in your garden. You can’t really relax there when you know that all and sundry could be watching you! Get some privacy by putting up a fence or maybe even planting some trees. Just bear in mind trees take a long time to grow and could impact the sunlight that’s let into your garden. Unless you want to completely shade your garden, in which case carry on.

Get Rid of Weeds

Get rid of weeds to tidy up your garden further and stop it looking unkempt. You may not be able to get rid of them forever, but you can definitely make a dent on them and stop them from coming back for a bit.

Include a Water Feature

Water features are extremely tranquil, and will help you to feel more relaxed when you spend time in the garden. You could go for a pond if you have the time for one, but a water fountain is just as effective.

Focus on Nice Seating

Having nice seating in the garden gives you somewhere to relax. Just remember it doesn’t have to be your standard seating – you can think outside of the box. Have a hammock, or even a garden swing. Turn this garden into your dream garden, but make it practical at the same time. If you always have friends over, they are going to need somewhere to sit.

Hopefully, these tips will help you to make your outdoor area look better than ever before. Try them out and leave a comment to let me know how they worked for you! Thanks for reading.

What Is That Realtor Talking About? Learn that Real Estate Lingo!

Does it ever feel like your real estate agent is speaking a different language talking about things like SPDS, fixtures, or due diligence? Real estate agents use a lot of acronyms or shortened phrases in their daily business, but typically forget that the consumer didn’t go to real estate school and never uses these words.

So if you’re in the middle of a real estate deal or maybe just about to start the process, here’s some words and phrases you’ll want to know and what they should mean to you. Don’t let these ones go over your head anymore, so the process can be a little less intimidating.

Addendum: A separate document from the original describing a change made to the initial form like changing the closing date or explaining HOA terms

Appraisal: The formal process of determining the value of a home required by the lender

ARMLS (Arizona Regional Multiple Listing Service): The website accessed by Arizona Realtors where listings by all other realtors are shared.

Closing: When all parties meet to sign documents and bring appropriate monies at the Title/Escrow Company to finalize the purchase/sale of a house.

CMA (Comparative Market Analysis): The process of determining the value of a property done by a real estate professional by comparing similar recently sold properties to your home.

Commission: The amount of money that is paid to the real estate agents after the closing of a transaction. It is typically a percentage of the purchase price paid by the seller.

Deed:  Legal document the proves transfer of ownership from buyer to seller

Down Payment: Percentage of the purchase price that the buyer pays in cash

Earnest Money: Deposit made by the potential homebuyer to show they are serious about purchasing the home, at closing it is typically applied to buyer’s down payment.

Fixture: Anything of value that is permanently attached to or part the property ie: carpet, landscaping, etc.

FSBO’s: Properties that are not listed with a real estate brokerage, but are “For Sale By Owner”

Recording (Recordation): At closing, the deed is recorded at the County Recorder’s Office and house is officially owned by the buyer.

SPDS (Seller Property Disclosure Statement): Document filled out by the seller disclosing all material (important) facts about a property from any known issues, repairs done, liens, etc

Under Contract/Pending: The seller of the property has accepted a buyer’s offer to purchase the property and they cannot accept any other offers.

Hope these words and phrases gave a little more insight into your real estate transactions and feel free to ask your real estate agent to clarify words or phrases you may be unfamiliar with. You want the process to be as smooth as possible and understanding the lingo will surely help!

What You’ll Need To Do Before Renovating Your Home

Most of us want to have a home we can be proud of. It can take us years to achieve this by scraping together our savings and slowly upgrading room by room. Once you’ve got the money in the bank, though, where do you start? Here’s my guide to transforming your house into the home you’ve always dreamed of:

Have A Clear, Concise Plan

Whether you are an avid Pinterest user or prefer the old-school scrapbook approach, have a plan in place. You should know exactly how you want your home to look before you even think about beginning to work on it. The first step is the same as if you were planning to redecorate your garden. Collecting inspiring pictures and keeping them all together will help you organize everything neatly. This eliminates the all too tempting impulse purchases we’re prone to when we opt just to wing it instead. It’ll also mean you never fall short of ideas. It would also be wise to keep backup options ready to go, just in case your preferred interior isn’t possible to achieve for whatever reason.

Consult A Specialist

You’ll need an expert opinion to guide you through the process of renovating your home. Although you have ideas in mind that you’d like to achieve, they may not always be feasible. For example, getting in touch with bathroom designers will help you sort the pipe dreams from the possible. It’s their job to put your ideas into practice by analyzing all of the practicality issues that you aren’t aware of. For this reason, it’s important not to let your heart be set on any styles in particular. Keeping an open mind will allow you to compromise on your favorite interior designs for the sake of function.

Save Money By Transforming Old Furniture

You may think that old coffee table’s best days are behind it, but a little love and attention can go a long way. Home renovations don’t come cheap, so you want to save money wherever it’s possible to do so. There isn’t much a good old lick of paint and sanding job can’t achieve. You never know, the ideal furniture for your newly designed home might have been right under your nose the whole time, just in need of some care.

Understand Your Limitations

Don’t get too carried away with changes. You still have to work within the confines of your existing home. Though you may be able to make some changes, such as knocking through connecting walls, your layout will have to remain largely the same. Coming to terms with this early on will help guide your decision-making process. You’ll be well aware of what will work within your existing structure, and how to make the best use of the space you have available. Remember, nobody knows the character of your home better than you. You’re the one that has to live there every single day. Use this knowledge to your advantage and you can make the most out of your new purchases.

I hope these tips help you in your renovating quest. It can be quite a stressful time without a good plan in place! Thanks for reading.

So You’re Ready to Sell Your Home?

It’s the beginning of the year and you’ve decided that it’s time to sell. Maybe it’s your first home and you have no idea what to expect or maybe you’re a seasoned pro in selling homes and you need a refresher! Selling your home can quickly become an overwhelming process especially without consulting a real estate professional. Here’s some tips to get started before you get anxious:

1. Interview, Interview, Interview!
   Don’t just hire someone because they’re your friend or referred by someone. Definitely sit down with multiple real estate agents to find the best fit for you. Do they know your area statistics? Are they equipped to market your home effectively? Do they do the things that are important to you? Are they willing to communicate with you every week about feedback, new marketing, new or just sold homes in your neighborhood and more? What do they want to price your home at and do they have comparables to back that price up? Get someone who is qualified because the process will be so much more tedious with an ill equipped real estate agent!
2. Declutter!
   You knew I was going to say it, but you absolutely need to start decluttering. You’re moving anyway, why not get a jump to put your house in the best condition possible for the best photos and showings? Use bins for Keep, Sell, Donate and of course trash cans/bags for things that just are beyond repair. You’ll thank yourself in the days before moving when you have less to pack because you’ve already done a lot of the dirty work!
3. Clean!
   It’s really important to get your home in tip top shape. You can hire a professional cleaning service or do it yourself, but all homes need a good deep cleaning especially before you’ll have people walking in to critique your home on a daily basis. Remember you want to keep it clean for the duration of the listing process, so if you have kids or pets, keep in mind what you can actually keep up with. Your home should always be in “show ready condition,” because you never know when you’ll get a call from a potential buyer only 15 minutes away.
4. Remove Personalized Items!
   One of the hardest (and necessary) next steps to do is de-personalizing. You want the buyer to walk through the home and envision themselves living there, not you. Remove family photos, calendars, kid’s art etc. As sad as it may be for you to do, you want to take the home out of your house.
5. Remember That a Little Goes a Long Way!
   You don’t have to completely change your house to get it ready for the For Sale sign out front especially if your real estate agent hasn’t suggested any major changes to paint, landscaping, or flooring. Remember all those things you said you were going to do? Fix a leaky faucet, replace a mismatched door knob, tighten the screws in the door hinges, etc? Finally take the time to do them. They won’t cost you much, but they will put your home in even better condition!

Try to relax through this process! It’s not easy, but consult with your real estate agent. They’re the professional and they’ll further advise you if you have questions! Hope you got some good tips for getting ready to sell your home!