Selling our home.

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The above is all good advice. The appraisal even if it costs $600 may be used for refinance purposes if you decide selling isn't in the cards. Ask your current mortgage holder who they use
An independent appraisal is going to determine ~what a bank will loan. Which is typically the deal breaker unless you have a cash buyer.

Do your own home inspection - most stuff that is already in your mind bank of to-do's put everything down on a punch list.
Have the wife's freinds or other aqaintance come and do a walkthrough tell them to be brutally honest - as if they wanted to buy the property. Fix things other people notice even if it's cool with you.
 
I disagree. A thief is a thief is a thief. When it's on the market, there are pics. It's not hard to figure out when someone isn't home. If you're going FSBO, ask for prequal letter or proof of funds up front. Don't get into scheduling a showing until they can provide that. It's not just a matter of dealing with potential thieves, but lookie looes that can't afford it or just feel like looking at it with no real intention of buying.

Sorry, a thief is a thief is much too simplistic. There are sophisticated thieves and there are meth heads that couldn't formulate a plan under any circumstances. And there are plenty of them between those two extremes.

Our lawyer gave us an upfront rate for closing. There were no additional billable hours, etc.

Yes, for closing. That doesn't get the lawyer's assistance in negotiating the contract.

If you do go FSBO, don't let the lawyers do all the negotiating. We had an issue with the PO's
and our lawyers getting into it over the septic test. Each was trying to protect their respective client's interest, but all it ended up doing was getting us and the PO frustrated. Luckily we were in contact with him, so we went around the lawyers and negotiated a solution we were both happy with. He thanked us for contacting him because he was getting frustrated and thought we were behind the issue, when it was our lawyer. He wasn't emotionally attached, but still, he didn't want to feel like he was getting screwed.

Thank you for making my point. You had to go around your own lawyer and deal. What if the other party insisted on using the lawyers?

Home buying and selling is pretty emotional. That's the hardest part of FSBOs as a buyer. We made an offer on a one that was really hard, because it had been hers/her husbands and he did a lot of work-before he passed away. She was asking too much $$, because her emotional attachment was built into the price. That was a hard offer to make, to try to word it carefully. It was rejected...and I think it's rented now and she never sold it.

It shouldn't be, but it often is.I have purchased two homes in which the seller was emotionally invested and was asking too much money. In both cases there were Realtors on both sides of the negotiations. In both cases a Realtor had the seller in tears explaining the realities of the situation.

Sometimes it takes that.
 
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.

So which agency do you work for? I assume you're a licensed realtor. The fact that you're capitalizing "Realtor" says a lot.

I can't disagree with anything you're saying but I can share my own experiences. My first home sale was FSBO, the listing was on the MLS, I did sell through the buyers agency and it DID save me a lot of money. As soon as I had an offer on my home I began calling listing agents for homes my wife and I wanted to buy. I ultimately did the same thing on the back end, worked with one realtor, saved half the commission. The current level of real estate sales commissions are criminal, in my opinion.

I know several licensed realtors in this state and from what I can tell becoming one is exceedingly easy. In Michigan you need 40 hours of training (all of which can be had online for a small fee), take and pass one test, no experience required and receive 2 hours of "legal updates" each year. Getting a permit to install a hot tub is almost as much work.
 
Sorry, a thief is a thief is much too simplistic. There are sophisticated thieves and there are meth heads that couldn't formulate a plan under any circumstances. And there are plenty of them between those two extremes.

A realtor isn't going to protect you from a sophisticated thief. Simply having someone that can show it whenever isn't going to do anything. All you have to do is say that you schedule showing during a certain time frame because you work from home and can't be disturbed during working hours, etc.

Yes, for closing. That doesn't get the lawyer's assistance in negotiating the contract.

Actually, it did. We paid one up front fee, period. We did work around them with the previous owner on that one issue, however the lawyer amended the contract to make the deal legal.

Thank you for making my point. You had to go around your own lawyer and deal. What if the other party insisted on using the lawyers?

The same can happen with a realtor-in fact, it's more likely to with a realtor than without. I have more bad realtor experiance stories than FSBO stories. Lawyers get paid no matter what, realtors only if there's a closed deal. Also, realtors seem more likely to make buddy deals-which happened to a friend, and she got less for her house because her agent knew someone that wanted her house and didn't allow another interested party time to make an offer, and didn't tell her about it. She found out when the other interested person approched her personally, but by then it was too late, she had accepted the other offer.

It shouldn't be, but it often is.

Only if you're an investor. for everyone else, it should be. It's where your family is, where your memories are or will be made. One home we worked as the buyer's agent on, they accepted our clients lower offer because of the letter we included with the offer. We mentioned their dog and his name, and the seller had a dog with the same name growing up. They chose our clients because they sounded like they would care for the home the same as the sellers.

You sound like you work for NAR. People buy and sell FSBO all the time, without needing a realtor.

Bottom line is, you will need to decide which you prefer. I still say that agent was a loser. Not all agents are bad, you just have to sift through them.

I also don't know if I'd bother with an independant assessment. I'd have a few agents out and get their opinion, but also ask to see the numbers they are basing it on. Have them show you the comparables.

Same for the home inspection. If you were selling a 100K house, maybe. I don't know your market well enough. If it's possible investors will be possible buyers it's going to be a waste of money. We didn't get one on the Cottage, we knew what we were getting (more or less). I'd leave it up to the buyers at you potential price point. It might be better to spend the money on fresh paint, etc-all those little unfinished details.
 
So which agency do you work for? I assume you're a licensed realtor. The fact that you're capitalizing "Realtor" says a lot.

I can't disagree with anything you're saying but I can share my own experiences. My first home sale was FSBO, the listing was on the MLS, I did sell through the buyers agency and it DID save me a lot of money. As soon as I had an offer on my home I began calling listing agents for homes my wife and I wanted to buy. I ultimately did the same thing on the back end, worked with one realtor, saved half the commission. The current level of real estate sales commissions are criminal, in my opinion.

I know several licensed realtors in this state and from what I can tell becoming one is exceedingly easy. In Michigan you need 40 hours of training (all of which can be had online for a small fee), take and pass one test, no experience required and receive 2 hours of "legal updates" each year. Getting a permit to install a hot tub is almost as much work.
40 hrs.??? Man that is nothing! Hell my electrician's license takes over 4 years!!! What a joke..
 
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You sound like you work for NAR. People buy and sell FSBO all the time, without needing a realtor.

Why, because I am suggesting that someone who has never sold a house and has a horrendous commute should fully consider the benefits and pitfalls of FSBO versus using a Realtor? Who is going to show the property if the owners are never home? Can they field phone calls at work? All important considerations for a FSBO.

You also forget that I stated up front that I have both bought and sold property the FSBO route. I am very familiar with the process.

I'll mention something else that no one seems to want to bring up. FSBO buyers know that FSBO sellers are looking to save the commission. The FSBO buyer expects a cut of that savings. FSBO sellers don't necessarily save any money. They do have a lot more headaches to deal with.
I also don't know if I'd bother with an independant assessment. I'd have a few agents out and get their opinion, but also ask to see the numbers they are basing it on. Have them show you the comparables.

A FSBO seller is ahead of the game if he can advertise a fresh professional appraisal. It could be the thing to entice a potential buyer who is reluctant to consider FSBOs.
 
Why, because I am suggesting that someone who has never sold a house and has a horrendous commute should fully consider the benefits and pitfalls of FSBO versus using a Realtor?

No, because I was an agent and you sound like a representative of NAR...and because you know what NAR is. Oh, and because you're capitolizing "Realtor".

I've been an agent. I've bought FSBO and via MLS listing through an agent. I've looked at houses. I've seen behind the scenes in real estate. Your presentation is very one sided, towards realtors.

I'm not saying they should sell FSBO. Or with an agent. It's really a decision that's up to them. I don't like seeing someone present such a severely one sided argument with scare tactics about thieves rather than helpful points. If you're an investor, why not add pointers on helping to sell the house, rather than why he should only use a realtor.

A FSBO seller is ahead of the game if he can advertise a fresh professional appraisal. It could be the thing to entice a potential buyer who is reluctant to consider FSBOs.

I agree. But at their potential price point, it might be money better spent on presentation.



Pete, have you ever watched any of the HGTV shows like buying and selling? A lot of it is superficial to the area (that one in particular, they usually go very modern), but the underlying pointers are there. If you choose to go with an agent, interview a few. Ask them to explain their pricing, show you comps, and see if they can point out things you might be able to do that wouldn't cost a lot but might get you more money. A good agent should know your area, the buyers and what they want. Right now, neutral earth tones seem big for wall colors like sagey green, grey/blue. Of course granite and stainless steel, but those are big $$. A simple fresh coat of paint and new handles/knobs in the kitchen might be as effective at your price point. I would say if possible, have the stove running with flames showing when potential buyers are coming over. This time of the year it's homey and comfortable seeming. I know it's an old trick but it seems to work, try baking an apple pie, or using scented candles, or even some spices or lemons boiling on the stove (you can probably boil them, then let them cool). Avoid eating strong smelling foods like fish, chinese food, etc. I agree with whomever suggesting having friends over to evaluate it for you. You'll want his and hers opinions. I mess around with Pinterest a lot, you can get a good idea of current trends there. I use it to help me design my cards ;) it's good research. I'm not saying you need to drop 10K on redecorating, but a few hundred in paint and little "touches" might net you a few extra thousand in asking price-or at least a quicker sale. I don't know how many houses that compare to yours are on the market, but it might pay to check them out and see what you can do to make yours stand out from those. Make buyers fall in love with your house, make them see their family there..baking cookies in the kitchen and putting up a tree by the stove. If people can see themselves there, they are more likely to make an offer.

Here, like this one: http://www.zillow.com/homedetails/315-E-Pearl-St-Ovid-MI-48866/74688840_zpid/

It's been on the market 115 days or there abouts. Look at that kitchen. it screams DATED. Paint the cabinets and lay an inexpensive laminate floor and it's a whole new place.

A good agent can access the MLS photos of sold properties and you can see what they looked like. They can also tell you how long they were on the market. Look for ones that sold quickly, and see what they looked like.
 
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.

No you cannot. The IRS does not allow you to take any capital loss on the sale of a primary residence. More generally, as far as the IRS is concerned capital losses and gains on any asset are the difference between what you paid and sold for. Period.
 
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