TOM & CYNDEE
BROWNER - CRS,
ABR, GRIQUAD CITIES REAL ESTATE WITH RE/MAX
SERVING THE ENTIRE IOWA AND ILLINOIS QUAD CITIES ............................................................
DAVENPORT - BETTENDORF - ROCK ISLAND - MOLINE AND SURROUNDING COMMUNITIES
TOM & CYNDEE
BROWNER - CRS,
ABR, GRI
BROKER OWNERS OF RE/MAX BI-STATE - SERVING IOWA & ILLINOIS
1-563-388-0008 Office - 1-563-388-0083 Fax - 1-866-388-0083 Toll Free - 1-563-570-7629 Cell - 355-1616 Home
Have a question? The answer is just a call or e-mail away. Contact us at tom&cyndee@quadcitiesrealestate.com .
We know you want to sell your home for the most money, in the shortest time and with with least inconvenience. If you want serious advertising and effort from your agent, call or contact us for a FREE MARKET ANALYSIS of your present home. We are both Certified Residential Specialist by the Residential Sales Council. No obligation, of course. Call us on our private line at 570-7629 at RE/MAX BI-STATE or Contact us at tom&cyndee@quadcitiesrealestate.com - LOOKING TO BUY? Check out the services an Accredited Buyers Representative can mean to you.
Our Goal is to provide you with the most up to date information and Exemplary Service at all times. Homes are an important decision and a long term investment. When Your Money Matters, you need and deserve the most competent professional help available. We strive to always be on top of the market and to further our education's, that we may be knowledgeable to give you the best service and advice at all times.
CAN YOU SELL YOUR HOME BY YOURSELF?
The answer is maybe. If you think you can, go ahead and try it. I would even be willing to help you or provide services you need ala carte. I would also be happy to assist you in finding a new home or providing you with information on a new area. These two things we can do very well and there is no cost to you! See Buyer Representation
THE FACTS
As soon as you decide to put your home on the market - you are a retailer in competition with every other home in your price range in the market. Your home if sold by you or through a Realtor* will not generate an offer until it is the best priced, cleanest, nicest, best built, largest, or most financiable home in the market.
Many For Sale By Owner (FSBO) homes have flaws, do not meet city code, or have other problems. The owners do not want to fill out the mandatory Iowa property condition disclosure and tell prospective buyers about these problems. Realtors have told them that to list, they must disclose. So they try to sell their homes themselves. Rightly or wrongly, your home may be viewed with more suspicion by buyers because of this.
Then there are the homes that are dirty, have carpet or other problems. The owner knows that homes in better condition have sold for more money and hopes that he can get the same price without bringing the property up to neighborhood standards. Realtors may have told him that the selling price is expected is to be lower unless he fixes up the problems. Instead of taking the advice, he gets mad and tries to sell by himself. If this is you, you will still need to improve the property to get the highest price for it. Buyers purchase with their eyes and discount about $4 for every needed $1 of improvement. It is human nature to magnify the negatives.
Some FSBO homes need to be sold by the owner because they just bought it and now have to sell it. They have been transferred, lost their job or have other problems which require them to sell their home immediately and without assistance from their company or others. The problem here is that they may try too hard and send the message that this home is right for a low offer. National statistics show that homes sell for 10.2% more money through Realtors than received by For Sale by Owners. Part of this is the perception that since the seller is not paying a commission, the buyer should save the savings instead of the seller. Therefore, the offer is lower. Sellers may be too eager to receive an offer, agree without countering because they fear losing the buyer, or leave expensive concessions to the buyer on the table. Sellers are generally less comfortable in negotiating and the result is a net loss of money to the seller.
All these things are known and accepted by buyers, that is why their offers are lower.
OPPORTUNITIES - BROADENING THE MARKET - OPPORTUNITIES LOST
Sometimes the home is perfect and the seller is knowledgeable of the laws and recent sales in the area, or can hire assistance through an attorney or agent. They decide to attempt selling their home themselves. Sometimes they will accept a buyers agent showing the home and agree to pay that agents commission to bring in the buyer, get them through finance and arrange closing. If you decide to do this, advertise in the paper that you will pay a BBC (commission) of X%. Then agree to one time showings by interested agents in writing agreeing to pay that commission if the agent presents an accepted offer. Selling commissions are usually 3 to 3.5% on most homes sold through agents. The 3% is on homes over $200,000. This would guarantee you that agents would be willing to show your home.
You may want to hire help ala-carte. Hire a professional for a comprehensive market analysis to set the price on your home, buy color flyers, an offer, property condition disclosure, lead based paint disclosure, etc. You could hire a realtor to sit in on offer presentations or to draw up your offer to make everything legal. You may need help in getting inspectors, finding the best deals on repairs, getting your buyer to a bank or resolving their problems to get through finance. You may even want web exposure or help in ad layout. Many companies may not allow their agents to offer ala carte services. We do not have this problem, as Re/Max agents run their own business and set their own rules, as long as they are legal and within the Realtor Code of Ethics.
The fact is that over 67% of all For Sale by Owners end up using a Realtor. That means that only 33% of the For Sale by Owners ever get a buyer to the closing table. Often they have the property on the market for a year or more. National statistics show that of the lucky 33%, only 1/3 actually close on the first offer they accept. Buyers fail finance, inspection dates or other dates in the offer are missed and the offer to expires unclosed. Other problems may not be negotiated out, personalities get involved etc... Remember, every buyer has buyers remorse as soon as the contract is signed. They always wonder if there was a better property they missed or one better will be listed tomorrow. Once an offer is agreed to, you must make sure that all contingencies are met and on time, or your buyer may legally walk out on you. There are many details and each must be attended to, and as a For Sale by Owner, they are your details.
The cost of an attorney to close a transaction is between $250 and $300 with abstracting included. If an attorney prepares the offer and counter offers, closes etc. the cost can rise to $500 to $1500 or more, depending on the time he bills. If you use appraisers to set your market price, or hire other professionals, your cost can go up from there. This does not include any advertising cost.
The goal of every seller is to get the most money, in the shortest time, with the least cost and inconvenience. Great, you and every other seller. Wanting does not get it done! You need to have a marketing plan. Advertising cost serious money. Realtors get a bulk rate because each agent represents $60 to $180 a week to the paper. That is week in and week out for years. You are a one run buyer and line adds without a picture can cost you $60 a week in each paper. It adds up fast. Spending $500 over a few weeks in not unheard of, and that does not guarantee a sale, just a listing in the paper.
It can be done, if you are skilled enough to do it right. I hope this has helped you formulate a marketing plan, and given you some ideas of how you might broaden your market if you do not get the results you expected. Selling a home is more than just putting a sign in the yard, an add in the paper and praying. Don't get me wrong, even as a Realtor, there are some listings where we pray too, there is nothing wrong with help where ever you can find it!
We wish you good luck and if you need some help, call or E-mail us, we don't bite and will try to answer your questions. If you need services, we can discuss ala-carte billing. If you would like some input into building a marketing plan, pull up seller representation. It may help you.
My wife Cyndee would never forgive me if I did not ask for the privilege in representing you in the purchase of your new home. To see what you can expect from us, check out buyer representation.
Good Luck!