fsbo

I found this great video on You Tube and I think anyone thinking about selling their home "for sale by owner" should view it.

I agree with the video on many aspects. You need to be ware of "For Sale By owner Companies", especially if they are charging large fees up front.

On the other hand I do believe you can sell it yourself if you have a good plan and know where to get support.

Listing your home on the internet is a good thing but not if you are contracting them to do the work for you, they are charging high fees, or are trying to persuade you to pay to be put in an "MLS". Many of those on line "MLS" services are internet only and used as lead generation for Agents. They capture the information on buyers looking at homes and then solicite the buyers with offers or other homes on the market. It is not a good thing for you.

However, you should list you home with pictures on lagit or free sites. One good free site is http://www.fsbobasics.com. There are others too I am sure. You can also take a short video of your home yourself and put it on You Tube and google video. That is also free.

The best thing that you can do is team with a Mortgage Broker that has a free FSBO program. Many people don't realize that after the contract is signed it is the lender or broker that controls the rest of the transaction.

Many Mortgage brokers are happy to work with you and pre-qualify your potential buyers so you don't get stuck in a contract with people that cannot get financed. They will usually provide you with signs, contracts, and disclosures you may not know need to be signed by buyers and sellers. They can teach you the ins and outs of the contract and explain things you may not understand.

They can show you the best financing options to use in your advertising, teach you about seller concessions and how it can impact your selling price. They can show you how much more you will pay in closing cost if your buyer gets a FHA loan or VA loan instead of a Conventional loan.

Well, whatever. This is a great video put together by a news station in Atlanta.



You may also want to view the video I have on For Sale By Owner Manual if you are a broker.


Always,

Connie

Why For Sale By Owner?

Everyone has their own personal reasons to sell their real estate "by owner" but we all have one major reason in common: The Real Estate Market absolutely sucks today and it doesn't matter if you are a buyer, seller, investor, agent, or some other real estate professional.

Does this mean you can't sell your home? No. Does this mean you can't find financing to buy a home? No. It does mean that you really need to be savy, informed and be watching out for your best interests at all times. Because real estate professionals are loosing their shirts right now they are much more willing to lend a helping hand at no charge. You should take advantage of this when ever you can.

You don't have to be a rocket scientist to sell your real estate "For Sale By Owner".

1. Decide on a selling price. To make sure you don't over price or even worse, under price, you should get an appraisal. Don't trust a real estate agent's market analysis. Agents can and will blow smoke up your skirt and tell you what you want to hear hoping to get your listing. Hire a HUD approved appraiser. The cost varies from state to state but it is well worth your money.
2. Understand closing costs and documentation. It is critical you understand how much your closing cost will be based on the type of loan the buyer procures. Your closing cost will be higher if the buyer gets a FHA or VA loan . This will impact your bottom line, cash out the door/in your pocket. If you think you are going to walk away with $10,000 but only get $8,200 I think you would be slightly upset. Go see a Mortgage Broker. He will sit down with you and run through closing costs based on different loan types. He can also explain what real estate documents and disclosures are required in your state and can probably supply you with them. He can also provide you with a sales contract and teach you how to fill it out. If he has a good fsbo program he could also make your home flyer and financing options flyer for potential buyers. Don't be afraid to talk to a broker. He will do all this for free in hopes of finding buyers that need financing.
3. Advertise. You need a home flyer and a financing flyer. Be really swift and do it all on one sheet. Home flyer on the front and financing flyer on the back. A yard sign is a must and of course place ads in the newspaper. Your ads will be much more effective if you mention the amount of down payment or mortgage payment amount based on different loan types. ($5,000 down will get you into this affordable 4 bedroom 2 bath home in beautiful Newbury Park.) Again, your mortgage broker can help you with this information.
4. List your real estate on the Internet. Wow! This topic makes me crazy. Yes, yes, ... list your home on a for sale by owner web site. BUT DON"T list it on one of those top of the search web sites that charge you a small fortune. You don't need all that stuff. There is so much information I want to give you about this I think I'll make it tomorrows topic. In the mean time, go to fsbobasics.com and list your home free.

See you tomorrow.