Oct 7, 2011 | For Sale By Owner, Homeowners, Real Estate, Sellers
Colby Sambrotto, one of the founders and former COO of ForSaleByOwner.com recently spent six months trying to sell his condominium himself through online listings and classified ads before turning over the condo listing to a New York broker. The broker told Sambrotto that he had actually priced the condo too low and was not attracting the right buyer for the condo. At first Sambrotto would not let the broker increase the price, but finally gave in. The condo soon attracted multiple offers and ended up closing recently for $150,000 more than the original asking price and Sambrotto paid a 6% commission on the $2.15 million sale. While this story is very ironic, it details a typical scenario that happens everyday.
Each year less sellers take the risk of navigating the real estate market on their own. In 1991 19% of sellers sold their home For Sale By Owner (FSBO), but the total number of FSBO sales have decreased dramatically since then. In fact, the National Association of Realtors reports that in 2010 the number of FSBO sales decreased to 9% of total homes sold and only 5% of those were sold on the open market (the seller did not know the buyer).
The number one reason that people try to initally sell For Sale By Owner is to save money, but statistics show that 90% of all FSBO sellers end up turning to a real estate professional for help. In these times we all understand trying to save money, but statistics show that FSBOs actually end up saving more money by having professional advice which sells the home faster, for more money and also greatly reduces monthly carrying costs (and frustrations).
FSBOs report that the most difficult task in this real estate market is setting the price correctly as demonstrated by Sambrotto’s story as well. There are a number of other factors to consider when determining how you will approach the real estate market with your home.
TIME: Selling a home is a full-time job and requires answering multiple phone calls, showing buyers, following up with interested parties, writing offers, negotiating contracts, coordinating appraisals, inspections, surveys, keeping up with lenders and brining everyone to the final closing which also requires understanding and answering numerous questions. Another factor of time is ensuring you are only spending your time dealing with serious, qualified buyers.
MORE COMPETITIVE MARKET: All sellers are not just competing with their neighbors, but also foreclosures and short sales and the difficulty of positioning a home correctly on this market is why 23% of FSBOs report that setting the price is the most difficult task. Remember REALTORS® see and sell hundreds of homes over the life of their career while most sellers sell only a handful and most likely have not seen their current competition when they put their home on the market.
MARKETING: While there are websites that cater to FSBO properties, they have no access to major online marketing avenues in a time when a large majority of buyers are selecting their homes online. Sellers also have no avenue to advertise their homes to other real estate agents who are guiding the majority of buyers on the market.
SAFETY: Safety should always be a factor when letting someone unknown into your home whether you are alone or your family is in the home.
LEGAL PITFALLS: Today there are more disclosures and legal requirements for sellers than ever before.
The Marr Team helps FSBO sellers with required disclosures and consulting or if you are ready tolet someone else do all the work and get your homes sold let us put our aggressive and successful marketing plan to work for you today!
Jul 28, 2011 | Homeowners, Property Valuation, Real Estate, Sellers, The Marr Team
YOUR REALTOR® can be a great resource even when you aren’t currently buying or selling real estate.
Home Renovations, Add-ons, and Thinking of making some changes to your home? Even if you won’t be selling for a few years, you might want to know what current trends are so you can ensure your updates will add value to your home in the long run. You may also want to ensure you are not overbuilding (upgrading beyond the standard) for the neighborhood. Sometimes the question may be as simple as whether buyers favor wood or tile floors, what types of pools are popular or as in-depth as determining whether a room addition would be a good investment. YOUR REALTOR® can provide advice and information.
Neighborhood Information Your neighborhood has an enormous effect on the value of your home. Sometimes you want to know the price your neighbor received for his home or who is the owner of record for the vacant home with the overgrown grass. It is great to be updated with facts, not just neighbor gossip. Just ask YOUR REALTOR® for the information you want. We offer websites that provide up-to-date information on any real estate matters in your neighborhood or call for specific information.
Comparative Market Analysis (CMA) Thinking about refinancing, upsizing, or downsizing in the future? Want to know what your home would sell for in today’s market. YOUR REALTOR® can compare the specific amenities in your home to comparable homes that have recently sold to provide you the information you need to make an informed decision about your family’s future. If you or someone you know is facing difficulty in these tough times we can consult on various options for homeowners who may be “under water” on their mortgage or are facing difficulties making mortgage payments.
Protesting Homeowner Taxes In May, when you open your tax bill you may first be elated to see the value of your home rising, then you remember you have to pay taxes based on this new assessed value. Is this a true current appreciation on your home or has the county overshot their numbers? Let YOUR REALTOR® know you are questioning the numbers and have them do an analysis to determine whether you might successfully protest your taxes. YOUR REALTOR® can prepare you with facts to show the appraiser when you meet with them. (Remember tax values are not a true indicator of market values as they vary widely in neighborhoods based on whether some homeowners have protested while others have not. Tax values should not be used as a basis of determining the sales price of a home so protesting your taxes will save you money and should not affect your market value.)
Finding an Agent in Another Area Let YOUR REALTOR® do the work to connect you with a real estate expert in any location across the country to ensure you get excellent service and information at your new location.
For Sale By Owner Thinking of trying to first sell it yourself? Contact YOUR REALTOR® to provide you with some important documents and disclosures that you, as a seller, are required by law to provide to any buyer.
Let us be YOUR REALTOR® we provide no-obligation consultations, market analysis and neighborhood information to all our clients, neighbors and friends and we would be happy to do the same for you!
May 9, 2011 | Real Estate, Sellers
The April/May 2011 REALTOR magazine (a trade magazine for REALTORS from the National Assocation of Realtors) published an article titled “6 Worth the Price Fix-Ups”. The list comes from HomeGain’s annual home improvement and staging survey who asked 600 real estate professionals to see what DIY home improvement projects give sellers the biggest return for their money. These six projects under $1,000 investment made the list.
- Cleaning and Decluttering ($290 Cost, $1,990 Return) Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling clean.
- Brightening ($375 Cost, $1,550 Return) Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
- Smart Staging ($550 Cost, $2,194 Return) Rearrange furniture, bring in new accessories and furnishings to enhance rooms, incorporate artwork, and play soft music in the background.
- Landscaping Enhancements ($540 Cost, $1,932 Return) Punch up the home’s curb appeal in the front and back yard by adding bark mulch, bushes, and flowers and ensuring current plants and grass are well-cared for and manicured.
- Repairing Electrical or Plumbing ($535 Cost, $1,505 Return) Fix leaks under the sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home’s electrical with new wiring for modern appliances, fix any lights or outlets that don’t work, and replace old plug points with new safety fixtures.
- Replacing or Shampooing Dity Carpets ($647 Cost, $1,739 Return) Steam-clean carpets, replace any worn carpets, and repair any floor creaks.
This is a good list to show how sometimes it doesn’t take much money to increase your home’s value. In this very competitive real estate market pricing and condition are critical to successfully selling your home. We always tell our clients (and potential clients) to get us involved in the process early to make sure you spend the money where you will get the most return for your house. For one home cleaning the carpets may be the most important item, but in another the landscaping may need the money – get a professional’s opinion before you spend a dime. We also offer staging to each of our clients because sometimes with the help of our crafty and creative stager it may not cost anything to rearrage the furniture you already have or you may just need a few accessories to make your house look great.
Again, the key to the whole process is to have a professional that can guide you through the process and help you get that home sold. The Marr Team has great results getting homes sold quickly and for more money so let’s talk about how we can do it for you too!
Apr 26, 2011 | Buyers, Homeowners, Property Valuation, Real Estate, Sellers
Frequently when showing buyers properties or discussing making an offer on a particular property a buyer will want to know the tax valuation on the home. Of course we always provide the answer, but remind them that the tax assessment on the home is not related to the market value, the two figures are mutually exclusive. Market valuation is the price currently set for a home based on recent neighborhood sales and the overall real estate market, it is what a buyer would pay to purchase the property. Property tax valuation is the basis for which an owner will pay property taxes.
The appraisal district for a county assesses homes based on an exterior analysis along with general market knowledge as of January 1st each year. Since Texas is a non-disclosure state (meaning the price you pay for a property is not public knowledge) the appraisal district is not able to use an actual sales price of a property unless a new property owner replies to the appraisal districts optional purchase price survey giving them that particular information. Homeowners will receive the districts assessment in May each year with their valuation for the year. In order to save money on property taxes owners will want the tax assessment value to be as low as possible and have the option protest the valuation if they believe it to be too high.
Market valuation is determined through an analysis of similar properties that have recently sold. The information used to determine this value is not public information so you will need a real estate agent or an appraisers to share the information and how your home fits into the market.
To further demonstrate the disconnect between these two numbers, consider two home owners in the same neighborhood with the same floor plan and amenities. Owner A has consistently and successfully protested to keep his tax valuation lower for several years while Owner B has accepted the ever increasing tax valuation each year without protest. When these owners put their homes on the market should it really matter what the property tax valuation is? In fact as a buyer you may prefer the home with the lower valuation so your taxes will also be lower, but it does not mean the property is worth any less on the real estate market.
Tax valuations will be coming out in May so if your home goes down in value, just breathe a sigh of relief for a lower tax bill and if you need a market valuation on your home contact us to provide you with our solid, market information and knowledge without any obligation.
(Of course, this information is most relevant to to the North Texas area where I specialize. If you live in another area, please consult a local REALTOR(r) for information about tax assessments and valuations in your area.)
Apr 13, 2011 | Foreclosures, Sellers, Short Sales
Sometimes selling your home may not be the only (or the best) option for you depending on your long and short-term real estate goals. When you have a knowledgeable, experienced real estate consultant we can help show you all the options that are available to you and how they could benefit you.
Options May Include:
Selling Your Property. Sometimes you just need to sell your property, and unfortunately that may not happen the first time you list it for sale. Let’s visit about why it may not have sold, make necessary corrections and get it back on the market with a customized marketing plan to get it sold.
Short Selling Your Property. If you are having trouble making the mortgage payments, facing foreclosure, owe more than you can sell your home for or must relocate immediately whether your home sells or not then you may be a candidate for a short sale, also referred to as pre-foreclosure sale. Your lender does not really want to own your home, that’s not their goal, so they may agree to accept less than what is currently owed on the note to not have to incur expensive foreclosure costs. Currently in the financing world lenders look at short sales more favorably on your credit report than a foreclosure and say you may be able to reapply for another mortage in as little as two years as opposed to the seven usually required for a foreclosure. I am a certified Short Sale and Foreclosure specialist with the coveted SFR designation meaning I have had the most up-to-date training available currently for the real estate industry in this new and specialized area. Even if the foreclosure is looming close – it still may not be too late!
Leasing Your Property. Maybe your neighborhood has experienced a recent decline in property values so now is not the best time for you to sell. The leasing market is very hot right now and may allow you to “cover” your mortgage and wait for a better time to sell in the future. Or maybe the investment option of gaining equity in a property without making the payment yourself is appealing to you. Our team can help with our leasing and/or property management services.
These are some of the most common options used by sellers to achieve their real estate goals, but it is not all of them. Call me to schedule an appointment to discuss your specific situation and goals and let’s see what we can do. How will you know if we can help, unless you call?
Apr 5, 2011 | Sellers
Spring has sprung and the real estate market is moving. I need some more sellers! 2 listing under contract in the last few days with multiple offers on both properties – I need more great homes to sell. If you are thinking of selling this year – let’s talk
