Thinking of Selling? 5 Reasons You Shouldn’t For Sale By Owner

Thinking of Selling? 5 Reasons You Shouldn’t For Sale By Owner

Posted: 28 Sep 2015 04:00 AM PDT

In today's market, with homes selling quickly and prices rising some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers. Here are five reasons:

1. 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

 2. Exposure to Prospective Purchasers

Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet

Where do buyers find the home they actually purchased?

• 43% on the internet
• 9% from a yard sign
• 1% from newspaper

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.

4. 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 9% over the last 20+ years.

5. 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. Studies have shown that the typical house sold by the homeowner sells for $208,000 while the typical house sold by an agent sells for $235,000. This doesn’t mean that an agent can get $27,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

The Cost of Home Improvement Fraud and Scams

Fannie Mae Introduces Home Purchase Sentiment Index

Fannie Mae Introduces Home Purchase Sentiment Index Posted: 17 Sep 2015 04:00 AM PDT Earlier this month, Fannie Mae’s Economic & Strategic Research Group announced the launch of their Home Purchase Sentiment Index (HPSI). The index will distill results fromFannie Mae’s consumer-focused National Housing Survey into a single, monthly, predictive indicator. According to Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, the goal for the new index is simple: “The Fannie Mae Home Purchase Sentiment Index provides the market a single number to track consumer attitudes focused on the housing market. Utilizing our National Housing Survey, the only consumer sentiment survey of its kind focused on housing, the HPSI will offer insights regarding current and future-looking housing market outcomes and will complement existing data sources to inform housing-related analysis.” Here is a graph of the findings of the HPSI from May 2011 until the current index. A higher number reflects a more positive sentiment from the consumer.According to consumer sentiment, the housing market has made great strides over the last four years.

The Cost of Waiting to Buy a Home

The National Association of Realtors (NAR) recently released their July edition of theHousing Affordability Index. The index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data. NAR looks at the monthly mortgage payment (principal & interest) which is determined by the median sales price and mortgage interest rate at the time. With that information, NAR calculates the income necessary for a family to qualify for that mortgage amount (based on a 25% qualifying ratio for monthly housing expense to gross monthly income and a 20% down payment).

Here is a graph of the income needed to buy a median priced home in the country over the last several years:

And the income requirement has accelerated even more dramatically this year as prices have risen:

Bottom Line

Some buyers may be waiting to save up a larger down payment. Others may be waiting for a promotion and more money. Just realize that, while you are waiting, the requirements are also changing.

California Probate Timeline

California Probate Timeline
 
 
The following is an outline of what and when things will happen in the usual probate situation.
File the "Probate Petition" at the courthouse (1st to 2nd month)
Notice of the first court hearing date published in the newspaper of general
circulation in the decedent's resident city and notice mailed to all heirs and named
beneficiaries (Immediately after filing of the Probate Petition)
First court hearing date is held (approximately 5 weeks after filing the Probate Petition)
Issued Bond -- if ordered by the judge (2nd to 3rd month)
"Letters" & "Order" appointing the Personal Representative are issued (2nd to 3rd month)
Personal Representative opens an estate's bank account with the estate's EIN tax identification
Personal Representative gathers all assets and inventories for safe keeping (0 to 3rd month)
"Notice to Creditors" form sent to all reasonably known creditors and the applicable
government agencies (2nd to 4th month)
Real estate properties are sold (3rd to 4th month if Full Authority is granted under the IAEA) >>>Full Authority>>>>>>Notice of Proposed Action>>>>Closed Escrow
"Inventory & Appraisal" form filed with the court (4th to 6th month) -- After the probate referee has been appointed/assigned by the court
Selling Property under >>>Limited Authority >>>Must Sell for at least 90% value of the Inventory & Appraisal Form>> Court Confirmation >>>Close Escrow
"Change in Ownership Statement Death of Real Property Owner" Form filed with the County Recorder (4th to 6th)
"Claim for Reassessment Exclusion for Transfer between Parent and Child" Form filed with the County Recorder (4th to 6th) -- Proposition 58. Proposition 193 Grandparent to Grandchildren
Debts are paid (4th to 6th)
Taxes paid (6th to 12th month)
Petition for Distribution is filed (8th to 12th month)
Second court hearing date for distributon (9th to 12th month)
Order signed by the judge allowing distribution to heirs (9th to 12th month)
Distribution to heirs/beneficiaries (9th to 12th month)
Receipt on Distribution from the Heirs that they received the money distribution (10th to 12th month)
Ex Parte Petition for Final Distribution and Order sign by the judge (10th to 12th month)
Case closed  (10th to 12th month)