Blog :: 05-2018

5 Reasons You Shouldn't For Sale By Owner

Selling Your HomeIn today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale By Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

Here are the top five reasons:

1. Exposure to Prospective Purchasers

Recent studies have shown that 95% of buyers search online for a home. That is in comparison to only  17% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

Where did buyers find the home they actually purchased?

  • 49% on the internet
  • 31% from a Real Estate Agent
  • 7% from a yard sign
  • 1% from newspapers

The days of selling your house by just putting up a sign and putting it in the paper are long gone.  Having a strong internet strategy is crucial.

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find  some problems with the house
  • The appraiser if there is a question of value

FSBOing Has Become More and More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

You Net More Money When Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own.  Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

A study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases,  may be costing themselves more, by not listing with an agent. One of the main reasons for the price  difference at the time of sale is:

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6%.

Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?

Bottom Line

Before you decide to take on the challenges of selling your house on your own, let’s get together and discuss your needs.

Contact the Ternullo Real Estate Team today to learn how we can help you sell your home.

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5 Reasons Homeownership Makes 'Cents'

Home Ownership Makes CentsThe American Dream of homeownership is alive and well. Recent reports show that the U.S.  homeownership rate has rebounded from recent lows and is headed in the right direction. The personal reasons to own differ for each buyer, but there are many basic similarities.

Today we want to talk about the top 5 financial reasons you should own your own home.

1. Homeownership is a Form of Forced Savings

Paying your mortgage each month allows you to build equity in your home that you can tap  into later in life for renovations, to pay off high-interest credit card debt, or even send a child  to college. As a renter, you guarantee that your landlord is the person with that equity.

2. Homeownership Provides Tax Savings

One way to save on taxes is to own your own home. You may be able to deduct your  mortgage interest, property taxes, and profits from selling your home, but make sure to  always check with your accountant first to find out which tax advantages apply to you in your area.

3. Homeownership Allows You to Lock in Your Monthly Housing Cost

When you purchase your home with a fixed-rate mortgage, you lock in your monthly  housing cost for the next 5, 15, or 30 years. Interest rates remained around 4% all last year,

marking some of the lowest rates in history. The value of your home will continue to rise with  inflation, but your monthly costs will not.

4. Buying a Home Is Cheaper Than Renting

According to the latest report from Trulia, it is now 37.4% less expensive to buy a home of  your own than to rent in the U.S. That number varies throughout the country but ranges from  6.5% cheaper in San Jose, CA to 50.1% cheaper in Detroit, MI.

5. No Other Investment Lets You Live Inside of It

You can choose to invest your money in gold or the stock market, but you will still need  somewhere to live. In a home that you own, you can wake up every morning knowing that your investment is gaining value while providing you a safe place to live.

Bottom Line

Before you sign another lease, let’s get together to help you better understand all your  options.

For more information, please contact the Ternullo Real Estate Team.

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