Build New In 2014: If You
Have A Home to Sell First
With the market improving and getting stronger, there are many that have been patiently waiting to build their new home. The two main goals would be to sell their current home in a seller’s market (so that it sells for top dollar and quickly) while finding the right loan to build new. Both of these goals have been very difficult, if not impossible over the past few years.
1) Check your local market to see if you are in a Seller’s Market or a Buyer’s Market. If you work with a real estate professional, they can answer all of your questions about your particular neighborhood and where the market is heading. Have your agent or REALTOR® compare your neighborhood sales and sales in similar neighborhoods over the last 6 to 12 months. This report should be more than just square footage and how many beds and baths. You need a detailed full report. Or you can do the research on your own and get a basic idea of your neighborhood market.
2) Should you Sell-By-Owner? As a REALTOR®, I can tell you that absolutely homes do sell-by-owner. But, the vast majority of For-Sale-By-Owners (FSBO’s) are in way over their heads and give up between 11 and 17 days on average and come to someone like me. Why? Because I have what they don’t. I do this full time and for a living. I’m educated, skilled, and experienced. I have all the tools to get the job done. I have a list of ready-to-buy qualified buyers. When I list a home, I market to over 900 websites and am a social media expert marketer. I have a team of professionals that work beside me from home inspectors, contractors, closing agents, insurance agents, and lenders and on and on. Let’s face it; selling your own home is a full time job. Also, many people don’t want “strangers” wandering through their home, people that just show up on your doorstep because they were driving by and saw the for sale sign. It’s a lot of work; experience with legal documents is also required. You could hire a real estate attorney to assist you with offers, contracts, addendums, and so on.
3) Choose your team members carefully. Another thing that most FSBO’s find scary or challenging: Negotiations. Negotiations are extremely important when selling your home. Buyers are often trying to determine what your reason(s) for moving are to tip the sales price in their favor and may need assistance with financing to purchase your home. Are you up on the latest loan programs, rates, terms, and have several lenders that you can refer your buyers to? Do you have rate sheets? I do.
4) What will your Net Sheet look like? If you have decided to hire someone to help you sell your home, this person can make the difference in your net return in thousands of dollars or cost you big time. It’s a big decision not to be taken lightly.
5) Something to think about:
- All REALTORS® are licensed to sell real estate so they are also real estate agents. But, real estate agents may NOT be REALTORS®! Most of the general public uses the two terms interchangeably but that is incorrect. If you have chosen to work with a REALTOR® your industry professional has to strictly adhere to a code of ethics. The Code of Ethics is strictly enforced. It contains 17 Articles and various underlying Standards of Practice. These are not just a list of rules that agents swear to uphold and adhere to. The Standards are much more restrictive and confining as to conduct than those governing agents who simply hold a real estate license. While there is no evidence can I guarantee that all REALTORS® are morally or ethically better than unaffiliated real estate agents, it is important to recognize that this is an attempt by the industry to regulate and protect you and your rights. I suggest you share your reasons for moving with your REALTOR® so that your goals are first and foremost in their mind. Their job is not to disclose your motivations. Your agent cannot be a dual agent in the State of Florida, representing you as the Seller and the Buyer at the same time. For more on Florida Brokerage relationships, read more here.
- If you have chosen to work with a real estate agent and they would like to know your reasons for selling, unless you personally know them very well and know their character, I suggest you just say that your housing needs have changed. This response will still be honest but without revealing any details. Otherwise, you risk giving away your weaknesses to someone that is only focused on getting you to the closing table to get a commission check! Now in all fairness and honestly, all licensed individuals should have you and your needs first and foremost. However, just like any other industry, there are good agents and bad agents. Go by your instincts.
The first part of the process to get you into your new dream home for 2014 is for you to do research on your local market so that you know how your neighborhood and home compare to other recent sales. Then, decide whether or not selling your home yourself seems right for you or if you want to put together a sales team to assist you. If you decide to work with a licensed agent, they can do the “heavy lifting” and research all the necessary data for you and use their knowledge and experience to make the process fast and as smooth as possible.