Home sales is all about affordability, the lower the cost (price of property + interest paid) of ownership, the more sales there will be.
We have been pounding the table that the bottom is in and interest rates will rise by Spring. Here is more information to back that up:
In an effort to stimulate home sales, the Federal Reserve, in an unprecedented move, has purchased of $1.25 trillion of mortgage securities and plans to stop as soon as March, driving up interest rates on new home loans. Analysts at BNP Paribas SA, Credit Suisse Group AG and JPMorgan Chase & Co. say the extra yield over benchmark rates that investors demand to hold the securities will widen as much as half a percentage point as the Fed stops purchasing. The 11- month-old program has reduced yields, which guides lending rates, by about 1 percentage point, BNP estimates. Along with the Federal Tax credit incentive, which ends April 30th, sales number should keep increasing for the next several months, then hit a ‘brick wall’.
If you are planning to sell in the Spring or Summer, you should move up your marketing schedule to as early as possible. If you are planning to buy, right now is time.
FSBO.com just wanted to clear up any confusion that there may be about a recent press release from yesterday claiming YOU can list a property on Realtor.com without an agent.One of the most popular questions www.FSBO.com receives is “Can I list my property on Realtor.com without using an agent and listing in the MLS?”.The answer has always been, and still is “NO”!
There is absolutely no way to list your property on Realtor.com without first having it listed in the MLS.There is absolutely no way to list your property in the MLS without using a licensed Realtor.The only thing you can control is the actual amount that you pay to have your property listed on the MLS and Realtor.com.
FSBO.com and similar companies have services that allow you to do this for a flat fee as opposed to a commission.Any company claiming to be the only, or first to offer this type of service has been mistaken.
It has been said that Real estate listings online with photos receive 300% more traffic than listings without photos. I know that no matter what I am searching for online (houses, cars, couches on Craigslist, etc..), I skip right over any listing that does not include a picture. So why are there still so many listings out there without photos (FSBO.com is happy that approximately 85% of its listings contain at least one photo)?
Some owners will say they do not own a digital camera, or do not know how to post photos online. Others may cite privacy issues, or not having enough time to do it themselves. No matter what the excuse, it is crucial that you post photos to your listing online. It will first get buys to stop and view your listing, and it will then let them know that you are serious about selling since you made the effort to create a complete and professional listing online.
Listings without photos send a message to everyone viewing it that you possibly have something to hide… my suggestion is to take that guess work out of their hands, and post as many photos as you are allowed. FSBO.com currently allows for unlimited photos on every FSBO.com listing.
I am happy to say that Video Number 4 is now ready. In this video I show you the steps I took to prepare the outside of the home. They say that curb appeal is the most important part to preparing your home for sale. If the buyers do not like what they see from the outside, they will most likely not waste their time looking at the inside. Below the Video Player are details on each project that I completed, as well as an update on the new idea I had that is mentioned in the last part of the video. Enjoy…
Projects: Pressure Wash House and Vinyl Siding: Due to current water restrictions in Georgia, I was not allowed by law to do this myself. I was forced to hire a professional. Total cost was $120.00 to clean and pressure wash the entire outside of the house, driveway, and back patio. Had these water restrictions not been in place I could have done this myself for free, since I have access to a pressure washer, and it would have taken me about 3 hours.
Mulch Front Yard and Tree Bed: I bought 8 bags of red mulch at Home Depot for $3.33 each. Even though the mulch that was there was fine, new mulch just has a richer color to it, and looks much better.
Trim Bushes: Most experts will tell you that your bushes and trees should never touch the house. This was a simple and free job that did not take very long, but make a huge difference in the curb appeal of the home.
Pine Straw and Lawn Mowing: For this I did hire a professional. This did two things for me, saved me a lot of time, and allows me to advertise that the house is professionally landscaped. Before they laid the pine straw, they sprayed special chemicals that I would not have any access to that will prevent weeds from growing back up through the straw in a week or two. Second, they got a much better price on the 25 bales of pine straw that they used for the job. The cost, and time it would have taken me to lay 25 bales would have been a much bigger burden than paying the $250.00 it cost me.
Window Washing Pretty straight forward and free, but must be done.
So, that is all for my landscaping and curb appeal tips. It’s now time to get to the marketing. My home has been on the market for 11 days now, and as promised in the video, I have not shaved / trimmed my beard since then. (Disclaimer: Mike reserves the right to shave his beard at anytime he deems necessary, but will try his best to get the home sold before that happens)
I only had one family come through during my Open House this past weekend. They seemed interested, and stayed in the house for at least 20 minutes. I gave them a blank Purchase Agreement that I purchased from the FSBO.com Real Estate Contracts section, a business card, and contact info for a mortgage broker in the area. They thanked me for my time, and for all of the information I provided. I reminded them that the asking price was negotiable, and that I can give them the code to the combination lockbox at any time if they needed to get a second look. I plan to follow up with them later this week just to remind them about the house, and to invite them back for a second look. (Please note I did not post my Open House Info online until late Tuesday night.)
So, I am curious how the rest of you did. I know we had over 225 people participate in the Open House day last weekend. What are your thoughts?
Our professional photo affiliate will compile a professional slide show using YOUR photos (up to 20) that includes nice graphics and music. The unique FSBO.com player allows you to share this as a link, or as an embedded code (like I have done above) on any other website or webpage you might have access to. The player will include Contact and Property details. Once you order the Gold Plus Package from FSBO.com, our affiliate will contact you with further instructions on how to submit your photos. FSBO.com will automatically add this tour to your listing once it is complete.
I am happy to announce that we have added the Most Recent listings (with photos) back on the homepage. We received plenty of feedback after it was removed, and due to popular demand have given it back to you. Please note that these listings will now be from all around the world, and not just from the United States.
Just so you know, each “state” has its own set of Most Recently Added listings. Simply search only the state to see these listings. As always, please let me know if you have any comments or questions regarding the new site.
This third video takes you behind the scene of what every FSBO seller should be doing while they get prepared to sell their home For Sale By Owner. I believe it is important for sellers to be as prepared as possible so that they in no way delay the buying/selling process, or lose a potential sale because they did not know what the next step is, or waste time with a non-qualified buyer. Enjoy the video, and scroll down to see a copy of all of the questions/answers Kal and I spoke about that were not captured on Film.
A big thanks to my good friend Kal Wayman, National Sales Director of Amerisave Mortgage for taking the time to sit with me. If you need a Mortgage or Refinance “You Owe it to Yourself” to visit Kal at www.gotkal.com (Nationwide).
Q & A: Mike Malkasian and Kal Wayman
Mike: Before you read the info below, I wanted to give my opinion on why it is important for you, as a seller, to speak with a Mortgage company first. If the answer to your first question to the buyer, have you already been pre-qualified, is NO, you want to be able to refer them immediately to someone you know and trust before getting into any further negotiations. Give them two people to call, and tell them to get back to you after they have their pre-qualification letter. This will save you a lot of hassle.
Ok, full interview below:
As a seller, why is it important for me to talk to a Mortgage Broker even though I am not the one that will be seeking financing?
As a seller you want to make sure that you are spending your time efficiently. The more people you can get in and out of that home the more likely you are to sell it. The last thing you want to do is to go into intense negotiations with a prospect that may not be qualified. Even worse than wasting your time negotiating with an unqualified prospect, what if you actually signed a contract with that person! You then would be stuck in a position where you can’t accept offers from other possibly more qualified buyers. You may lose an offer because of that and all because of what…. If the initial person you signed a purchase agreement with never closed you have wasted your time and resources and may have even lost a sale. You should always have a reliable mortgage broker ready to qualify any potential buyers. You see this every day now in the current market. If you buy a bank held property it is very common nowadays for the bank to require you to be prequalified by them (not an outside source) before they will sign an agreement. Once you build that relationship with a mortgage broker, he or she should be happy to sift through the potential buyers and tell you who’s qualified and who’s not qualified so you can properly focus your selling efforts.
Should I accept an offer from a buyer that has not been pre-qualified/approved?
No, absolutely not! You should always make sure that a buyer is pre approved before accepting an offer. The last thing you want to do is waste your time and resources and possibly lose a bid from a more qualified buyer.
Once I have an accepted offer from a pre-qualified buyer, do I need to hire my own attorney, or will the mortgage company’s attorney handle everything?
Typically the seller chooses the closing attorney. Sometimes the buyer negotiates to use their closing attorney but not often. If neither the seller nor buyer has a preference, the Mortgage company can help both parties select one.
As a buyer when and why should I contact a Mortgage Professional when searching for my next home?
You should contact a mortgage broker before you even start shopping! The reason for that is simple Mike…. Before you know what type of house to look for, you need to know what kind of house you can afford! If you were on a budget and were planning a date, would you not look at the menu first before scheduling a reservation?!? With all the different loan programs out there nowadays, a lot of people don’t even realize how much home they really can afford! Of course, as a buyer you always want to make sure you don’t overextend yourself and that you will accomplish your correct goals at the end of the mortgage as well.
What information would you require to get me pre-qualified/approved?
In order to get pre approved you need to provide proof of employment, income, and assets. Employment is confirmed by copies of recent pay stubs. Income is confirmed by copies of last 2 years w-2’s or tax returns. Assets are confirmed by copies of last 2 months bank statements (checking, savings, retirement)
What is the benefit of getting pre-approved/approved before making an offer?
Well, as noted before…. First off you know that you can afford the home and that you are not overextending yourself. 2nd and also very important…..It helps strengthen you offer when presenting your bid to a seller. A lot of times, sellers won’t even accept an offer until they see a pre approval letter. If they see one at the very beginning, they will probably take you more seriously and probably be more willing to negotiate on the front end.
Does it cost any money to get pre-qualified/approved?
Typically no. It should not.
Once my offer is accepted, what happens next?
The buyer should then start the loan process. Within 30 days of the estimated closing date the buyer should lock a rate, and fill out the loan paperwork. The mortgage company will then order title and appraisal. The mortgage company will also submit the file to be processed and underwritten before the buyers funds are released to the closing attorney to distribute accordingly to all parties.
What concerns should I have if no Real Estate agents are involved?
You should be concerned with what you are going to do with the extra 3-6% you saved!
So, from your point of view, what is the major difference when you are doing a FSBO deal compared to a traditional one with agents involved, and what can the FSBO parties do to make the process go smoother?
Well, the main difference is you save a lot of money! Yes, you give up the hand holding that an agent provides, but let’s be real here. Times are changing. People use to use stockbrokers to trade their stocks and pay excessive commissions. Now everyone does it themselves online for pennies a share or flat rates. Technology has allowed us to be more efficient with mortgages and securities. Why not use technology in the home buying and selling process. By eliminating agents you are able to save money because 6% of commissions are eliminated from the transaction. That money is then able to be put in the pockets of the most important people involved with the transaction…… the buyer and the seller!
As much as you want to feel like you are still at home while your home is on the market, many experts would agree that it is not a good idea. Take down and pack all personal memorabilia and photos, and store them in the garage, basement, or attic.
Besides eliminating clutter from the home which is more attractive to buyers, it will also take the emotional aspect out of it too. Walking them by the Family Hall of Fame will only make them feel like they are “taking” your home away from you, or “kicking” you out of the home that belongs to you. Buyers want this to be their home, not yours, so do yourself a favor and take it all down.
This will also help ease your pain of selling the home you have lived in and loved for so long. The benefits are on both sides of the fence.
Ok, we have a winner. Dahlia of North Pole, AK successfully guessed that it took me 23 takes to shoot the intro portion of my First video. So far the feedback from the 2nd video has been that it was much better, so at least I am improving.
Since Dahlia’s listing is current “Under Contract” she will not be needing the Virtual tour. I have decided to simply reimburse her for her Gold Package Listing ($99.95) for her participation and for winning my first ever contest.
Since I can’t help to promote her listing (because it is Sold), I have asked if she was willing to answer a few questions for me regarding her experience with FSBO.com. I have in no way modified her answers:
1. Did your buyer find you on FSBO.com, if so, by phone or email?
Our buyer is our friend from church, but we were contacted a lot this spring from potential buyers via the fobs website.
2. What other methods of advertising did you use: Other websites, newspaper, word of mouth, etc…?
We used (unsuccessfully) the newspaper on Sundays, and we posted flyers at the air force and army bases, as well as posted our house on ahrn.com (a military housing service) and also on baseforsale.com (a free classified website for the military). Here in North Pole, AK, we are surrounded to the north and south by military, and they were our target market. The other websites and flyers always had our FSBO.com listing, so the other forms of marketing always brought them to our website on FSBO.com
3. How long was your property on FSBO.com before going under contract?
We posted it in July, which, is the tail-end of house-hunting season here in Alaska (winter will be setting in and families usually don’t want to move in freezing, snowy weather) so we were late in doing that, but by February, we had an accepted offer!
4. Briefly describe your experience with FSBO.com, from the sign up process, uploading photos (did you do it yourself), receiving your supplies via UPS, leads received, etc…
It was the best site that we found for the “bang for our buck”. It was very simple to make our site - we started uploading photos and had it going in probably less than an hour! We received our sign and flyers very quickly (thank you UPS!). We were very pleased with the customer service: we posted a photo of our house just to get one on the site, but it wasn’t the “keeper” photo. We had asked for our flyers to not be printed until we got an acceptable photo of our house on the site and because they had already been printed, we received another set of flyers with the correct photo on them! Thank you!! We will definitely use FSBO.com again - we saved so much by NOT using a realtor! Great idea and keep up the excellent work!!
Thanks again for everyone who participated, and as promised, I will be sending all of you a consolation prize via email shortly.
