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Selling our home.

Post in 'DIY and General non-hearth advice' started by Pallet Pete, Jan 5, 2013.

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  1. Pallet Pete

    Pallet Pete Guest

    Do to circumstances out of our control we are looking at selling our home. We have a Realtor coming to do a walk through estimate today and tell us what the value is. Any advice on how to go about the sale ? We have never sold before just bought and this is a big move for us we will lost likely be moving 30-40 miles away for a new job saving us 120 miles a day work travel. Where to start with the sale or how to deal with walk throughs anything would help.

    Thanks Guys !
    Pete

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  2. raybonz

    raybonz Minister of Fire

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    I travel about 100 miles a day for work but like where I live. If you are moving for commuting reasons be sure you will like your new location.. Good luck Pete!

    Ray
    Pallet Pete likes this.
  3. Pallet Pete

    Pallet Pete Guest

    Thanks Ray we like where we live but for a few different reasons we have decided to move. More financially than anything. The new location is nice and would be much closer to work among other things.

    Pete
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  4. raybonz

    raybonz Minister of Fire

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    So you gonna tell us about your new job Pete? :rolleyes: Congrats on your new job Pete I just knew this would work out for you! :)

    Ray
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  5. Pallet Pete

    Pallet Pete Guest

    Not yet ! It is not official so I am waiting for the word still the holidays really slow down things a lot.

    Pete
    raybonz likes this.
  6. jdp1152

    jdp1152 Minister of Fire

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    Think about selling it by yourself if the area you're in sees a decent demand for homes. Use trulia, Redfin, etc to find out a listing price based on comparables. Avoid the FSBO sites...waste of time. You can pay to get it in the MLS and Newspaper. CList is free (and generated the most traffic for us). Find some standard agreements online or spend a few bucks on an attorney (for 800 bucks we had one handle everything from offer letter onward). we had ours listed for two weekends (had open houses on both) and got a follow up visit the following weekend. Tough market but since we weren't paying commission we could drop the price to a point where the three others in our neighborhood couldn't compete. Only thing that sucks is having to do the open houses/showings, but its better than paying a sellers agent a nice wad of cash to basically do nothing you cant do for a fraction of the cost. If you want more traffic, offer 2% commission for buyers agents. They'll contact you to ask but its easier on yourself to just say your terms in the listing.
    Pallet Pete and ScotO like this.
  7. Swedishchef

    Swedishchef Minister of Fire

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    I agree with jdp1152. It may be worth the try selling on your own. The reason I think this is simple: real estate agents don't do the same work they used to do. Before if you wanted to buy a house you went to their offices and they showed you catalogues of pictures of houses they were selling. They would have to contact other RAs to see what listings they had. Today with the click of a mouse or the tap of a finger you can see most of the listings. Lots of my friends sell priavately. You can buy a package of documents for a house sale (legal terms and all) for $100. ANd in Canada an RA earns anywhere between 3-5% commission which is thousands less in your pocket.

    Looking forward to hearing about the new job!

    Good luck and keep us posted!

    Andrew
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  8. Pallet Pete

    Pallet Pete Guest

    Is there a good site like Legal Zoom or somewhere to get all the documents prepackaged for a house sale ? I can contact a lawyer and talk to them as well ! I am gonna have to give this some consideration ! Thanks Guys

    Pete
  9. flyingcow

    flyingcow Minister of Fire

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    Can't announce the new job? Been watching the news........Your going to be named the new Secretary of State? Much better choice than John Kerry.
    MasterMech, fishingpol, ScotO and 3 others like this.
  10. Pallet Pete

    Pallet Pete Guest

    :mad:::P:mad:::P Dont get this trashed you cow ;lol I mean it !

    Pete
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  11. flyingcow

    flyingcow Minister of Fire

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    Good point, whoops. I won't tell anyone of your new appointment.

    Back on topic. Good Luck with your move. Not an easy thing.
    Pallet Pete, ScotO and raybonz like this.
  12. jdp1152

    jdp1152 Minister of Fire

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    Honestly, I would get an attorney to do that for you. One area you don't want to screw up is the contract terms. A well heeled RE attorney isn't expensive and can provide very valuable advice.
    Pallet Pete, ScotO and raybonz like this.
  13. stee6043

    stee6043 Minister of Fire

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    I sold a home in Michigan 6 years ago "by owner". I paid $500 or so with a service that got my home listed on the MLS. I personally think this is the best way to go about the by-owner sale. It gets you exposure to realtors and they can't tell it's FSBO. This will enable you to work with a buyers realtor and cut your comission costs in half, or less. I negotiated 2% total before I closed. Google it and you can find several services that will get your house on the MLS for very reasonable fees.

    Based on my past experience most realtors are vastly overpaid and should barely be trusted. 7% split between two people that did maybe 8 hours of work? No way. My personal experience only. Gone are the days of realtors trying to get the best price for a house. Now they seem to just go for the sale, at any price, no matter what they have to do. One other tip - you may want to consider getting an appraisal of your own if you haven't already. A buyer will have to get one no matter what, unless they are paying cash. Too many people get a bad surprise when the appraisals come along. Here in MI house values may be rebounding in some areas but I really don't think they've hit bottom yet in others.
    PapaDave and Pallet Pete like this.
  14. jdp1152

    jdp1152 Minister of Fire

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    Do the math. Your realtor only has incentive to sell your home. No incentive to get you the best price since dropping it barely costs them anything. Assume 5% split commission. 2.5% for your realtor. You list at 400k. For ever 20k you drop the price, it hurts you badly. It barely touches what they make. Ask yourself what their incentive is to get you the best price.


    Sale Price Commission
    400,000 10,000
    380,000 9,500
    360,000 9,000
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  15. jdp1152

    jdp1152 Minister of Fire

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    And for the record, I'm not opposed to using a buyers agent. They take you around, show you homes, teach you about the area you're moving, etc.

    Sellers agents only sell you marketing crap that you can pay for yourself for a ton less. Oh oh oh...but they use phrases like BIGGER THAN IT LOOKS! Airy but quaint kitchen! FEELS LIKE HOME! Move in Ready!
    Pallet Pete likes this.
  16. WhitePine

    WhitePine Feeling the Heat

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    I have bought and sold property with and without a Realtor, but there are a lot of land mines. I would not recommend it for a first time seller. A FSBO listing means you have to be available to show the property at all times, or lose potential sales. There are a lot of potential buyers who simply will not look at FSBOs, no matter what. In short, you will be limiting your potential buyer pool if you go FSBO.

    Then there are legal issues. There are state and federal laws that have to be complied with, not just at closing time, but also when showing. While it may not be likely to happen, you could conceivably find yourself in hot water for saying the wrong thing to potential buyers. Anything that even implies discrimination is actionable, whether intentional or innocent. Realtors know this and are careful, but the laws apply to FSBO sellers as well. There are even individuals and groups out there who regularly test sellers and agents, hoping for a slip up that allows them to file a lawsuit.

    Then there is the need to screen for professional thieves. A skillful thief can learn a lot about your property and habits with a phone call or two and a drive by.

    Can you show the property Wednesday at 11:00 am? We'll be in town then.

    No, wife and I both work. Sorry.

    You really have no way of knowing if a conversation like that is from a legitimate buyer, or just someone who wants to know when your nice house will be free of occupants. A Realtor will put a lockbox on the house and screen the calls. The buyers will not get your schedule from the Realtor. As a FSBO, you will be hard pressed not to reveal it.

    Even though I have bought and sold FSBO in the past, when we sold our old home last year, we used an agent. It eliminated a lot of headaches, and we sold fast and at at a good price. I recommend you list with an agent. If you want to try FSBO, wait until you have sold at least one home through an agent.
    MasterMech and Pallet Pete like this.
  17. vinny11950

    vinny11950 Minister of Fire

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    Good luck, Pete. Here is another idea, have you thought of keeping it and renting it out? It's work being a landlord, but it's also a good way to have an income producing investment.

    On the bright side, home prices are affordable now so it probably is a good time to buy a new home. Zillow.com is another website with good information for comps and past sales.

    Another metric I like to compare when looking at real estate is the cost of renting vs owning. When the rent is much higher than the mortgage people start buying.

    There are also cosmetic things that you could do to the house that might attract buyers.
    Pallet Pete likes this.
  18. Pallet Pete

    Pallet Pete Guest

    I won't rent out because it is just not cost effective to repair damage or have to homes to maintain for us. To much hassle for me to get involved with. We will save 600 a month by moving close to our jobs. Cosmetically I have got some work left to do but not much thank goodness that is a good point too. Thanks vinny !

    Pete
  19. WhitePine

    WhitePine Feeling the Heat

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    Yes, they can tell it's a FSBO. They aren't stupid. There is enough information in the listing that the Realtors know what is going on. The last time we were looking for property, acreage with or without house, the Realtor I was working with flat refused to show properties listed in the manner you suggest, even when I asked to see a specific property. I knew they were FSBOs because I had studied the market in my area. Most potential buyers don't have a clue that they aren't getting to see MLSed FSBOs.

    The sorry fact is, most Realtors hate FSBOs in all forms and will do all they can to steer buyers away from them.
  20. jdp1152

    jdp1152 Minister of Fire

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    I can understand not wanting to deal with the headache of FSBO. I hated interacting with everyone and hearing their critiques of my home. But I think the theft angle is a bit alarmist. An open house with me there vs. a realtor there watching things....I'd certainly feel better about myself keeping an eye on matters. There are free online materials about safeguarding your valuables for an open house. If your house is going be listed and catch the eye of a crook, they'll likely case your place and be able to break in whether you list it or a realtor lists it. All a personal preference. We saved a 15k commission which allowed us to come off the price a bit more to make a sale work with someone pushing their limit on the buy side. Happy to go that route and likely will do so again in the future should the need arise and time permits.
    Pallet Pete likes this.
  21. WhitePine

    WhitePine Feeling the Heat

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    Ask yourself this question. Would you post the hours the house will be unoccupied on the FSBO sign in your front lawn? Of course not, but you do have to provide pretty much the same information to anyone who calls.

    Realtor open houses are another story. They do pose certain risks. The primary reason Realtors hold them is to get the name and phone numbers of the lookers. They aren't always held in the seller's best interest, as the Realtor is mostly interested in securing new clients. If they find a buyer for your house too, that's a bonus. Sellers can always instruct their Realtor not to hold a public open house.

    In some areas, Realtors have days for Realtor only open houses. Typically, they go around en mass looking at all the new listings. This is the kind of "open house" that you want your Realtor to participate in. A Realtor that won't show your house this way should be avoided.
    Pallet Pete likes this.
  22. Hogwildz

    Hogwildz Minister of Fire

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    From an appearance standpoint, street appeal is the first key. I painted my prior stucco townhome, put a new door & storm door, and made the fist thing buyers see look very nice appealing. This draws them to the home and gets them in. Also a fresh coat of white paint inside, Makes everything look clean and room look large. Less is more as far as nick nacks and stuff on shelves etc. Minimize clutter.
    My realtor wanted me out of the home at showings as much as possible, and I was happy to oblige. I sunk about 6k into my home before selling and it really paid off.
    It is a stressful enough time, that I did not want to do the FSBO route, I negotiated 5.5% with the realtor, he did an excellent job of presenting it online etc. And did great photos and I think even a video walkthrough. Even the wording on the listing makes a big difference. My place sold in 3 weeks, when same places on the row were for sale for 1 to 1-1/2 years or so.
    Sorry to hear you are making a drastic life change, but if it is for the better in the end, congrats!
    I myself, would let great competent realtor handle my sale and not regret it a second. They know their job and usually do it well, if you get a good one.
    Good luck Pete!
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  23. heat seeker

    heat seeker Minister of Fire

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    Get an independent appraisal for the value of your property. Realtors often overprice a property to get you to sign, then tell you a few weeks later you have to drop the price to get a sale. I got burned by a realtor overpricing my house, then showing houses a couple of streets away, virtually identical, with lower, more realistic prices. Of course the buyers went for the "deals" instead of mine.

    If you get a professional appraisal for $X, and the house sells for less, you can probably take a tax credit for the "loss", legally.

    Definitely use an attorney! Well worth the cost!

    It's a stressful experience no matter what, so be prepared and maintain a sense of humor. Moving sucks, too, our last move damn near killed me with stress and bad movers.

    Best of luck to you, and keep your eye on your goal to give you some focus.
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  24. Pallet Pete

    Pallet Pete Guest

    The Realtor just left and we where told that given prices of homes around us and the fact that we got slammed by the collapse our house will be valued between 40-45,000. She pushed very very hard for a short sale and I kept saying no no no. :confused: That is almost as bad as a foreclosure and considering my policy of food, house and vehicle for work then everything else it wont happen ! I wont be using her and am thinking seriously thinking about private sale after that. Thanks again guys I appreciate all the advice please keep shooting us more ! I do understand that the value is low but then isn't the value in the buyers eye or is it a case of what the bank will loan a buyer based on property ?

    Pete
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  25. Pallet Pete

    Pallet Pete Guest

    Surprisingly we are not to stressed out about the decision because we know it will lead to a better situation. Which is good me being Mr Stressy Mc Stress Pants ! ;lol I will look into an attorney thanks heat seeker !

    Pete
    raybonz likes this.
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