There is a certain benefit that comes along with being a For Sale by Owner. Instead of paying a commission to realtors, you get to use a Multiple Service Listing (MLS). Multiple Listing Services, once the exclusive privilege of realtors, now are available in online, public forums. You get the same promotional benefits for your property that you would attain through a realtor for a fraction of the cost.
The typical costs of using an MLS are somewhere between $150 to $800 for professional hosting sites such as Yigdigs.com, but there are sites out there that offer free hosting, however the quality of your listing will depreciate with the cost. Often, buyer brokers won’t consider a house without a professional looking listing.
Archive for March, 2010
Reason of the Week #4: Multiple Listing Services (MLS)
Wednesday, March 31st, 2010How to Shop Smart for a Mortgage
Tuesday, March 30th, 2010Some people probably think that being a For Sale by Owner is a somewhat stressful occupation. You’re worried if you’ve priced right, if your house will ever move off the market, if the market won’t just collapse under your feet again…
But many times, we overlook the buyer’s aspect. They have a lot of pressure of picking the right house to live their lives in—not to mention that they’re making a long-term financial commitment.
That’s where I come in. Today, I’m going to offer a few tidbits of the best way to shop for a mortgage if you’re a new homebuyer. The information you get here is in no way the foolproof plan to getting the right mortgage, but it is a start. Do as much research as you can to figure out what bank and what mortgage will work for you. (Here’s a website to help you start.)
Your best bet as a new buyer is to get as much information from as many lenders as you can. If you’re working directly with lenders, it’s best to get several quotes. Different lenders will quote different prices so your safest bet is to obtain as many options as you can. Mortgage brokers obtain loans for you from lenders and their access to several lenders could open up more options for you as far as a mortgage goes—but not always necessary.
One thing to be aware of is that when you use brokers, there is usually a fee attached to your interest rate, called points, so ask and inquire as to whether you’re working with a broker or directly with a lender.
The bottom line is that the more research you do and brokers/lenders you look into, the better grasp you’ll have over what you pay and what you get. Like I said, get quotes from a bunch of different lenders to ensure that you’re getting the best deal possible.
Reason of the Week #3: More Control Over Choice
Wednesday, March 24th, 2010By buying For Sale by Owner, you can avoid agents who are only showing houses within their own brokerage. Many times, agents can only offer you the choice of homes that their agency manages. They’re not trying to fit the house to the people, they’re trying to fit the people to the house.
Yes, they do have fiduciary responsibility to their client to do what is in their best interest, but sometimes that is subverted because they have to work within their agency. Perhaps the best houses in their agency aren’t the best for you. Buying for sale by owner avoids that kind of selective selling.
Shout Out To Yigdigs
Monday, March 22nd, 2010On a Google FSBO newsletter, Yigdigs.com got a hearty shout out!
So instead of my usual site plugging and industry news updates, I figure I’d just let you guys read what this generous gentleman had to say about our humble abode, here.
The Fair Housing Act
Saturday, March 20th, 2010Selling a home for sale by owner isn’t always a walk in the park. You’ve got to do your research so that you know what you’re doing right, and what you could be doing better.
One thing that’s not really touched upon too much in all the blogs about FSBO is the issue of Fair Housing. The Fair Housing Act was first administered in 1968 to prohibit the “discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability).”
It was then amended in the 80s so that the Fair Housing and Equal Opportunity department had more of an enforcement role. This organization investigates complaints and determines whether or not a discriminatory housing practice has occurred.
Simply put: everyone can buy a house if they have the means, and you as the home seller have an ethical duty to allow them to do so. There’s no room here for prejudices and biases. This is the extreme circumstance, however.
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For the FSBO, this mostly applies to the way you word and direct your sales pitch on your house. There’s a certain language that is appropriate for describing your house’s potential to the buyer—and it’s okay to point out the highlights, but sometimes that verges on violation of the Fair Housing Act.
Realtor Mag Online as well as the HUD (Department of Housing and Urban Development) has a few pointers that can be helpful to anyone selling a house. There are two major tips that pertain to the seller:
#1 Refusing to sell a home to a person because of a person’s class status
Basically this is just echoing the longwinded description from above. You cannot neglect to allow a family of six to look at your duplex because you don’t think it would be a good fit. Likewise, you can’t deny a couple your 5 bedroom house because you wanted to sell to a family.
#2 Using language within legal real estate documents—such as lease agreements and listings—that would create provisions for who would and would not be interested in purchasing or renting the property.
You can’t say, “This is a house suited for a large family of Methodists that could attend the church right down the road,” or, “This is a cozy two bedroom nestled into one of [your city’s] Hispanic neighborhoods.” There is obviously some discriminatory/prejudiced/directing language at play here.
Yes, it is a small issue, and although it may not be a problem that’s out of control, it’s still something to be cognizant of when making your listing and dealing with buyers. The bottom line is that it’s just not a good business model. If you only have a select group of people that your willing to sell to because of their “protected class status”, then you’re just eliminating a larger buying pool and a chance at getting more than your asking price. Sell fair and sell smart!
Reason of the Week #2: The Great and Empowering Sense of Satisfaction
Wednesday, March 17th, 2010Happy St. Patty’s Day to all!
Selling your home For Sale by Owner will afford you a sense of personal satisfaction, especially when you are handed the check at the signing table.
Buying a home is an integral part of the American dream. Just like grilling burgers and sparklers on Fourth of July, there’s a sense of pride in owning your first home. It’s the same content feeling you get after a hard day’s work, after accomplishing something that took some real attention. Don’t deprive yourself to joy of selling your home yourself, accomplishing your goal, and saving money while doing it.
