For over 20 years in the capital city of Texas, a quiet little neighborhood nestled comfortably next to the UT campus lights up every year and attracts thousands a day.
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Archive for the ‘Selling Your Home’ Category
AUSTIN’S 37th STREET
Sunday, December 12th, 2010Saturday, December 11th, 2010
In the name of the season, we’re going to have a little fun here at Yigdigs.com’s blog. I’ve decided to post pictures and provide a little background of some of the nation’s best and brightest Christmas displays.
2. COMMISSIONS ARE…WELL…NEGOTIABLE
Saturday, December 11th, 2010
In continuing with our series on “10 Things About Agents”, we move onto commissions. The whole basis for the For Sale by Owner model is to avoid those costly commissions. So I think I should start this post off as saying that commission are more than negotiable—they’re unnecessary. Instead of selling your house and paying that 5%-6% commission rate (which sellers are responsible for), you can sell your home yourself, save the thousands on commission and never have to deal with realtors.
Despite the resounding reasons against going with a realtor in the first place, we shall still enumerate upon this topic—briefly.
Real estate brokers and their agents tend to make is sound like their fees are at a set price, a certain percentage of commission on a given sale. But when market factors tend to force competition—such as this market—realtors tend to be a little bit more flexible. If you ask them, they’ll probably be more than happy to give you a discount if you commit to selling your house and purchasing your next with them. If you end up in a dual-agency position, the representing agent will typically reduce fees.
Bigger agencies tend to offer “better” services through their agents and will have more fees and costs before commission is even discussed. So it’s typically cheaper to go through independent realtors or smaller agencies.
One case in which seller and buyers should definitely try to negotiate with agent commission fees is when the home doesn’t quite sell at the asking price. In many cases, agents are more than happy to renegotiate their commission percentages in order to get a deal in the books.
Although agent commissions seem like hard, fast rules, they’re often negotiable under the proper circumstances as evidenced by the cases presented above. Remember: you always have the ability to ask for a lower commission rate. Or you can’t just go the FSBO route and avoid the whole debacle.
Coming up next:
The 3rd thing about realtors, and…
Texans start to feel the housing crunch.
Stay tuned!
HOME FOR THE HOLIDAYS
Sunday, December 5th, 2010Well folks, it’s that time of the year again and I spoke with our dear friend and founder Andy Salo about any ideas that he had for For Sale by Owners for the Holidays. Here’s what we came up with.
HOLIDAYS ARE A BAD TIME TO SELL.
Typically, folks get busy this time of year—what with all of the shopping and presents and what not. Thanksgiving, Christmas, and New Year’s are such homey times that most people are settled where they are for the season. After all, who wants to spend the winter months moving out of an old house and dealing with mortgages and what not? Nobody.
However, there are still bargain house hunters out there. Folks looking to start their new year in a new home may be privy to the fact that no one’s really trying to sell right now, so they’re looking for good deals. For the FSBO, this means that you’re not going to have a lot of competition in the market. If you list your house at a reasonable asking price, you could improve your chances of making that unlikely holiday sell.
HOLDIAYS ARE A GREAT TIME TO SPRUCE UP THE HOUSE
So if you do decide to hedge all bets and put your house up on the market for the holidays, why not decorate accordingly? Nothing makes a house look warmer and more inviting than some tasteful holiday décor. You’ll want your potential buyers to picture themselves with their kids, next to the hearth opening up presents on Christmas day. Just refrain from telling that anecdote about the year Uncle Pat came to Christmas unexpected dressed in a Santa Claus outfit and made the kids cry.
Merry Christmas Y’all!
1. THE OPEN HOUSE
Thursday, December 2nd, 2010
If you list with an agent—and I’m sure many of you have before—you’re probably aware of the overwhelming push to host an open house for “walk-in” customers. The agent has a big hand in this, but his reasons may not be a helpful in your cause as you may have thought.
According to an NAR study, only 2% of houses are sold thusly. I have another agent corroborating the opposite saying that 20% of his residential listings are sold through open houses. The jury is ultimately out on whether or not open houses get houses sold, but is seems that it certainly doesn’t hurt. That being said, it’s probably not the best allocation of resources.
So what really goes on at open houses and why are listing and selling agents so eager to give up their Saturday afternoons to come sit in a pristine looking house if—at best—they have a 20% chance of locking in a buyer? Networking.
It’s true. A great way for listing agents to find “orphaned” buyers and other potential customer is to bait them with an open house. It’s all about the conversion factor. With the right touch, any one who strolls into an open house is a potential customer and possible addition to an agent’s client base. So while he/she may have you thinking that this is the be-all end-all way to get your house sold, it’s not necessarily true.
But FSBOs beware. The open house, likewise, is not the key to selling a house. A good listing and properly set asking price is the key. Dig into your network of friends and family to find a seller. Use those social media tools we discussed in an earlier blog—just don’t rely on a few signs and some desperate walk-in buyer to buy your house.
UP NEXT AGENT’S “NEGOTIABLE” FEES AND HOW TO SPRUCE UP YOUR HOME FOR THE HOLIDAYS
REAL ESTATE TEAM, ASSSSSEEEEEEMMMMMMBBBBBLLLLEEEEEEEEEE!!!!!!!!
Sunday, November 21st, 2010
The real estate market is a complex, intricate beast and sometimes the world in which the housing market operates can seem a daunting and all together unemployable one. But it doesn’t have to be that way, really it doesn’t. In fact, upon a closer look, you’ll quickly realize that the intricate mess of real estate is made up of many, many parts.
That’s why when sellers are working with buyers, you’re not just working with the individual, but an ENTIRE TEAM of individuals. Detailed in an article posted on the Yahoo! real estate pages is a how-to on establishing a reliable and competent team of real estate experts.
The facts are there: in a 2009 survey by the NAR, it was established that around 90% of potential buyers use the Internet to search for their home. Long gone are the days when realtors would drive by, brochure in hand and show the houses. Now agents are putting demographic surveys out in databases of listed homes and bringing buyers options as to what they want and how much they want to pay. Of the 90% looking for their house online, the NAR found that 79% used a realtor’s assistance.
When selling a home FSBO, sometimes you’re going to need help, advice, guidance—anything that can really steer more novice seller in the right direction. Just as a buyer needs a team to help them find a house, sellers can use the help of real estate experts to find a buyer.
AGENTS
In the world of FSBO, agents can sometimes be spun as “the enemy”. They are the ones out there working for costly commissions, while the humble FSBO sits back in anonymity, without the infrastructure that comes with working for an agency, doing it old school. But, these licensed folks can often offer a great deal of helpful information when they’re not trying to swoop in and sell your house for you. If you know of a realtor that specialized in your neighborhood (you’ll know by the realtor signs hanging in front yards) then give them a call and see what asking prices are for other houses in the area, or see if they’ll tell you what houses have been selling for as of late. (I’m sure as to the legal stipulations on that in the state of Texas. I’ll find out and get back to you folks hopefully by next week.) Any information could be extremely helpful in determining how to price your house, as that is the most important step in getting your house sold quickly.
BROKERS
Brokers are the kind folks that do the dirty work. When it comes time for contract negotiations and the exchange of money, it can be a great weight off the shoulders of FSBOs to have a knowledgable broker at their disposal. Chances are you have personal friend who is a mortgage broker. Ask them questions. Get to know the intricate process of closing on a house and familiarize yourself as much as you can ahead of time. This will expedite the whole process.
BUYER
These are your prey. You have to be an active seller. Remember: the homes that sell aren’t necessarily the best homes on the market, but they’re the homes that worked the hardest to get sold.
This is the FSBOs real estate team. If you have friends or family with these titles at your disposal (even buyers) all the better for you, O noble FSBO.
[Coming up in future posts: 10 Things Your Agent Isn't Telling You, and How Some Contractors are Taking Advantage of Desperate Homeowners]
The Distinct Advantages of Hiring a Professional Stager and Cleaner
Saturday, November 13th, 2010So our last post was brief but offered some really good insight into enticing buyers through their brokers. We surmised that selling your home FSBO saves you money on commission to buyer’s and seller’s agents, which usually sits right around 6%. So why not use 2.5% of that to attract buyers with agents? It makes sense.
With that remaining 3%, which you have saved by not having to pay a seller’s agent, you can further increase your chance of selling your home. Using a little bit of that money to hire professionals to make your house look its “buy-me-now” best is a great financial option.
Depending on your home, a typical professional cleaning and staging service can cost anywhere between $800 to a couple grand, but it is well worth it to help sell your home.
According to the Department of Housing and Urban Development, a professionally staged home (by either a hired professional, or by your own doing) can typically sell for 17% more than a non-staged home. And further findings suggested that staged homes spent less time faltering on the market untouched.
Home Staging can be a priceless endeavor in the home selling process. There are many ways to do it, and you don’t have to spend the money on a professional stager if you don’t want to. There are services out there and countless websites that educate even the most clueless seller on how to properly stage a home, so you can do it yourself. If you look close at the pictures I’ve provided, the differences are subtle, but noticeable.
It’s not like the original layout was bad, it just wasn’t flattering. Notice the use of natural light and the reduction of clutter. These are the things that potential buyers take note of when looking at a house. Remember: give the buyer enough room to imagine themselves in the house, not what it looked like while you lived there.
ENTICING BUYER’S AGENTS
Wednesday, November 10th, 2010In the world of For Sale by Owners, you’re not always going to be dealing with sellers going it alone either. A lot of times you’re going to have to deal with buyers and their agents, so it makes sense that you might want to throw a couple incentives in there to entice those agents to come check out your sick pad—er, house, that is.
Think about it: If a buyer had an option, who are they going to go with, a house for sale, or a house for sale with a little commission cut in for the agents. It’s simple business.
Here’s the best way to do it: figure out what the market rates are. If typically a buyer’s broker’s cut is around 2.5%, then sneak a nice juicy 3% in there just to fatten up the deal. The more you can court the buyer’s agents the more you can entice your buyer.
HA!
The Abridged Guide to Facebook, Twitter For Sale by Owner
Friday, October 29th, 2010
Since there is virtually ZERO info out there on how to update your sales pitch for information age, and how to attract buyers using the multi-faceted approach via social media hubs such as Twitter and Facebook, we’re just going to write the book ourselves.
In our last article we saw that realtors are beginning to turn to Twitter to reach out to potential buyers, and it’s working. Buyers are getting up-to-date info even before it hits the MLS.
So why can’t FSBOs do the same?
Well, there’s a pretty good reason: FSBOs don’t have an established client base, while realtors and agencies spend a good deal of their time acquiring clients and promoting their services to others. This is the nature of going it alone and doing the honorable and sometimes unforgiving work of selling your house yourself.
Take any advantage that you can. In today’s tumultuous market, any kind of business maneuvering can help you find a potential client. By all means don’t rely on Facebook and Twitter to sell your house, but likewise, don’t just rely on a good looking pictures and a flattering MLS. Use every tool at your disposal.
FSBOs used to rely on drive-by traffic, or the action in the current market to get their home out there, not usually doing anything proactive about selling their home other than listing on an MLS. But now sellers have the tools to reach buyers literally at their fingertips. Online Social Media offer a practical, expansive, and really, really cheap means of reaching potential clientele.
Depending on your demographic, I would bet at any given moment there are at least a handful of friends and acquaintances that you can connect with on Facebook. My parents are all over it and so is my 9-year-old cousin. There’s really no limit to who is on there.
And the beauty of it?
Facebook’s sole purpose is to connect people. This could provide an opportunity to reach more people than simply posting an add or dishing out for an MLS. One little blip on your profile page can instantly reach a network of thousands, and it’s free.
Twitter is a bit more difficult because it’s not as interconnected as Facebook, but can still provide up-to-the-minute updates on any info you choose, even that you’ve just put a house on the market. People have to find you, and they need a reason to look. So maybe a little interlinking between accounts would work.
The first step is to sign up for these services and see what comes of it. If your house has been on the market for several months with no light at the end of the tunnel, then these things can only help you. It’s no time at all and unlocks a whole new reservoir of a client base.
