Selling your home FSBO- Is there really a risk?

You bet there is! For both the seller and the buyer. Selling a home without an agent is a lot more challenging than most  owners think.  A very valuable role that your agent plays in your transaction is negotiating issues on your behalf without letting emotions get in the way.  Most sellers are just as emotional as the buyer is about their sale. That's not to say that buying a FSBO home is easy. Buying a FSBO home is also a complex transaction, involving many events and services  that needs to be coordinated, and involves an element of risk. Put the two unrepresented parties together and it's a recipe for disaster.

Before a seller puts their home up for sale, the first thing that needs to be done is to make sure through the town clerks office that there are no liens on the property that would preclude them from selling the home, or at minimum, affect their bottom line. The seller must then obtain all of the state required documentation and disclosures and fill them out truthfully and properly, as these disclosures must be given to the buyer.

Misrepresenting your home's size, condition or amenities even by accident can result in a lawsuit, and most always ends up as a lost sale. Any marketing materials must be clear and  accurate. Unfortunately, we live in a litigious society where people sue for just about anything they can think of. Sorry, but true. There was an local seller  who got sued years ago because they mis-stated the square footage on their  home. The buyer thought he was purchasing a  2500 square foot home, and it turned out to be 2100 and some odd square feet, as found out by the appraiser. The buyer then proceeded to calculate square footage cost based upon the size stated on the listing(and assumed to be accurate by the buyer), deducted the cost of the overage and revised his offer.  My unresolved question in this is- Why didn't the buyer's agent tell that buyer?

The seller didn't want to budge from the original price, the buyer wanted that house and threatened a much larger lawsuit if the seller didn't follow through with the sale. It did close, however that seller ended up selling his home for a much less than fair price.  I would have hated to sit at that closing table. Ouch!

Something to think about- Real estate agents have to pass a test  in order to become licensed. The state thinks it is important enough that the State of Connecticut Department of Consumer Protection oversees all licensees, and hold them to strict guidelines, besides having mandatory education every two years on new laws.  When you look for a Realtor, you look for an agent that is experienced, right? You want someone who knows all the ins and outs of a transaction, and can help through the rough spots.  If that is the case, when you sell your home by yourself, you are actually hiring the most inexperienced person to represent you. Even if you bought and sold ten houses before,  the laws have changed and continue to do so. What was acceptable even five years ago is not appropriate  now.

And what about that interested  buyer that pulls up to your home in the nice new Mercedes, gets out of the car and is dressed very well? They look qualified, but are they? How much are those payments for that luxury automobile? Do they fit within the buyers income bracket, whereas the payment will not lesen their ability to get a mortgage? That buyer may very well come to you with a pre-qualification letter, but as Realtors- we know that a pre-approval letter is the one that counts. Most anyone can get a pre-qualification letter- generally, no assets are even checked before those letters are issued. Not worth the paper they're written on, in my opinion.

Some buyers look ONLY for FSBO's, thinking that they can take advantage of an uneducated seller.  The offer that you receive on your home has to have all of the necessary elements included or it is not a valid offer. All contingencies must be spelled out and have due dates- that even includes inspections.

Of course, you will need an attorney, to perform the closing, just as you would with an agent. However, any legal issues over and above a standard closing will be extra. You can end up paying an attorney more than you would have paid a Realtor to represent your interests, before anything ever escalated to the point where you have to call an attorney in.  

Call me, I don't bite and I am not hard sell or high- pressure. There is no cost for me to come over and give you an honest evaluation. I look at it this way- If you are truly not interested in hiring me, or any agent, you may know someone else who is someday and that you would think of me and refer my services.All the best to you- when you are ready for a Realtor, contact me. I'm here for you.

What you should expect from your Real Estate Agent, and how important is it to you?

I came across a survey  a few days ago that resonated with me, and I wanted to share it with you. It's what home buyers and sellers expect from their agent, by level of importance.  I nearly fell off my chair when I read some of the numbers. EXPECT MORE FROM YOUR AGENT, PERIOD! I'll tell you a story...

Just yesterday, I received a call from a past seller client who moved out of state,  and she called me to get a referral for an agent in her area to sell her home. So I looked on the internet for  local real estate sites, I checked realtor.com to see which company was listing what, and what that company's  average listing prices were until I had found a few  that could be in the running.

As you know, I am affiliated with RE/MAX, and there was a RE/MAX office in her area, but I didn't see that to be a good match for her needs. That's rare, but it happens.  After reviewing the company websites, I found one firm that stood out to me, so I called, spoke with the Office manager, and described the type of agent that  I was looking for to assist my past client.  Well she gave me somebody alright, WHOA! The agent called me up, Ms. Gum-chomper, and a baby was crying in the background. That agent bragged about how wonderful she was, and all I could think of is that the only person she's trying to convince of how good she is, is HERSELF!

That was a BIG no-no in my book. So I called the manager and said, (in a very pleasant manner) that the agent did not seem like a good fit for my client, and could she please have someone else call me. The manager did ask why I felt that way, and I was frank- I told her that the agent sounded a bit brash, there was a baby crying in the background, and it just didn't seem professional to me.  The agent called me back to tell me that the child wasn't hers, but in fact, it was her clients, and she was out showing a client around when she called me. THREE wrong things with that picture. Out with a client and not giving full attention to that client, calling someone else in front of that client, and driving and talking with a BABY in the car. Ok, fast forward...

I got another agent that was just perfect! and for that I am happy. Now, after that long story (sorry) it leads me to this survey taken by the National Association of REALTORS (NAR). NAR recently published their annual Profile of Buyers and Sellers. In it, there was a survey about what buyers and sellers deemed important skills that their agent ought to have. The results may surprise you, depending on how you look at that figures compiled. If you look at the chart below, it represents the percentage of importance placed by the  respondents on a particular aspect of real estate.  Just to be clear, this is an excerpt, and not the entire poll, which was broken down further by marriage status and gender, although the numbers are still similar.

The numbers that surprised me most were negotiation skills, people skills, and technology skills, because as a Realtor I think that these skills are also very important.

That agent had poor people skills, evidenced  by her disrespect to her client, and for me, for that matter. She didn't have a personal website, either. That doesn't cut the mustard with me,  and it shouldn't with a buyer or seller either. I think that a lot of these skillsets mentioned should rate a lot higher, and buyers and sellers hould expect more from their agent. When  I put my name on something, it BETTER be good, period, and all agents  should set the highest standard for themselves and their clients as possible.



For Sellers: Finding the right agent with a positive attitude

I remember meeting a potential client some time ago, who wanted to sell his home. He knew his home was unique in a few different ways, and was concerned that the right buyer wasn't there for such a unique property, especially the way that the market was. He  really just wasn't sure how marketable his properrty was.  
What i can tell you is that  from my perspective, I walked into a beautiful and tastefully decorated home. It was obviously  architecturally designed, with every attention to even the most minor detail, and nothing was overlooked in the design, or the quality of construction. So why was the seller concerned about the prospect of selling his home? Besides the fact that there was a lot of love and time put into the house, I am sure it's full of memories as well. But that's not always all of it. This particular home had something very unique to offer, and its appeal would not be as broad as a home fitting the standard Fairfield County Connecticut mold- that is,  the expansive 4-5 bedroom, 3 bath colonial style home on a level lot.

  While some agents might consider a home that doesn't fit the mold as a "white elephant"-  no matter how beautiful and well done everything was, they couldn't or wouldn't be bothered with  selling it-  afraid to invest their own money on what they thought may not be a sure thing as far as a sale- and  I think that's a shame.

I, on the other hand, looked  at the house as a GREAT opportunity for someone who is looking for that particular uniqueness that this home had to offer. What another agent may consider as a white elephant, I consider as a BONUS. and, incidentally,  I really dislike the term, "white elephant" Just so you know, The seller was a highly intelligent, successful businessman, and was not a negative person by any stretch of the imagination- some people would even call him a realist.
Bottom line is what some people will find utterly amazing, others could care less about. That goes for EVERY home, regardless, by the way. Any good, experienced real estate agent will tell you that the trick to  finding the right buyer is marketing the property for what it is, not overdramatizing it, not underselling it, or forgetting or omitting details. Most of all, it's about  tailoring a marketing plan to find that particular buyer who would be most likely to buy your house.

If your agent isn't excited about marketing your home, he/she wont bring an excited buyer, and you won't get your home sold.
So if you meet an agent, who is not genuinely (AND I MEAN GENUINELY) interested  and excited about your home, DON'T WORK WITH THEM. It's as simple as that. No need to get discouraged, your buyer is out there, and the right agent can always find them.  And I just happen to know someone..... :)

You can just ask the seller that I spoke about earlier. Of course, I sold his house. He wrote a testimonial for me,  and you can read that, and a few others on my website by clicking here

Real Estate and Psychological Impact

Real estate can be a funny animal sometimes. Take for instance, the subject of Psychological Impact. That  is considered a non-material fact as it relates to  real estate transactions. A few examples of a psychologically impacted home  could be a home which is the site of a homicide or a suicide, or some type of felony took place there, and it could also mean that  the owner or occupant suffered from an infectious disease. Supernatural occurrences also fit into this category.

There is a  Psychological Impact Law in Connecticut that has been in place since 1990, and in laymans terms,  it pretty much states that if a buyer or lessor has a concern over a property's psychological impact, he must submit a request a writing to the seller, and the seller must return that answer in writing.

It is NOT a seller's duty, nor an agent's duty to disclose  any psychological impacts unless the request is made in writing, so if any of these instances trouble you, seek legal advice from your attorney, and discuss your concerns with your agent.

HOME BUYER MYTH # 1 : It's a good idea to work with the Listing agent.

WHAT ??   If you are interested  in buying a house, AVOID having the listing agent represent you.

That may be the exact opposite of everything you may have ever heard about buying a home. Let me explain why. That agent is representing the seller, and besides having  a fiduciary relationship with that seller, there is an established  rapport with seller- there's an allegiance to that relationship. They know that seller better than they know you, so no matter what an agent says about being fair and equitable to both parties, I would think it would be psychologically difficult to attain a fair balance. Forget about Dual Agency representation- it's diminished representation.

So the moment you call the listing agent on that property, that agent knows you have interest. If you want to submit an offer on that property,, you'll probably end up paying more for it, because the agent already knows what the seller wants, and wants to look good to that seller by bringing in a great offer.

But someone told you that the agent might cut their commission to make the deal, and that way, you pay less.  The truth? Agents  cannot cut their commission without their Broker's approval. The Broker looks at things  strictly in dollars and cents. If the broker allows a commission break to help you purchase that house, then they do not benefit from a full commission on the seller side, or the buyer side. That home will sell- to someone who doesn't ask for a break on the commission, and you will end up buying another home through that agency with no commission break. So the broker loses twice in this instance if they cut the commission for you.  It's a rare occurrence when it does happen, so don't count your chickens on that one.

If you are interested in a house, DO NOT call the listing agent.  Interview Realtors and choose ONE real estate agent to  represent you. Someone that you can trust to get you the very best deal on your next home.   And  I just happen to know somebody....