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"Tips to Buy or Sell a Home"
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Article: "Tips to Buy or
Sell a Home"
By Andre Plessis
"How to Sell Your House Without Using a Real Estate Agent."
Buying or selling a home is the single largest investment of a lifetime for most people. Here are some tips that will help home buyers and sellers.
Tips For Home Buyers
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Real estate agents legally represent sellers, NOT buyers…their job is to get the highest possible price for the sale of a property. They are not "your agent" and what you tell them could be used against you. Learn how to take control of the relationship. |
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Avoid giving more than $100.00 when you write a purchase offer on a property. If you cannot complete a transaction you have less money at risk. Large deposits do NOT guarantee you will get financing. Big deposit could in fact work against you. Savvy mortgage brokers know that if you back out of the transaction you will lose your deposit. Often time they will use that against you. At the last moment they will give you an excuse and increase your rate and if you back out of the deal you will lose your large deposit. If you in fact back out of the deal YOU WILL LOSE YOUR DEPOSIT. Why risk your money? |
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When you sign a purchase offer, make sure that you write above your signature the clause "subject to buyer's attorney's approval". This magic phrase can get you out of a bad real estate deal if your attorney does not approve. |
Tips For Sellers
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Avoid signing a listing agreement with part time real estate agents. Consider using only full time agents so that you increase your chances for more professional representation. |
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Avoid signing long-term listing agreements with any real estate agent. Keep the listing contracts limited to 90-day increments so that you can review performance. |
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Interview multiple agents before signing a listing agreement. Make sure that you write above your signature the clause "subject to seller's attorney's approval". This magic phrase can get you out of a bad listing contract if your attorney does not approve. |
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Make sure your real estate agent presents you with a real estate marketing plan detailing the selling activities that will be performed during the listing agreement. |
Before you spend thousands of dollars to buy or sell a home, shouldn't you learn how to protect yourself? You see, real estate agents are trained and licensed in real estate principals, practices, law and (some) finance. They are licensed salespeople with access to inside information you don’t have whether you are a home buyer or seller. This training gives them an unfair advantage over you...
There Are Two Basic Kinds of Listing Contracts:
| In an exclusive right-to-sell contract, you
agree to pay the agent a commission no matter who finds the buyer , even you.
This is the kind of agreement usually used for a seller to obtain the full
range of traditional brokerage services. |
| In an exclusive agency contract, you agree to pay your agent a fee or commission. The commission paid when the property is sold may be reduced or eliminated if, for example, you find the buyer, rather than the listing broker. This kind of listing agreement can be used to provide a limited range of real estate brokerage services. |
Selling real estate involves a lot of paperwork. To be legally enforceable, documents like listing contracts, sales agreements, offers, and counteroffers must be in writing. Just as important is knowing what the writing means. Ask your agent or lawyer, if you have hired one, to explain any forms or documents that you do not understand.
For Sale By Owner
According to a 2002 National Association of Realtors study, about 13% of all home sellers go solo. The advantage is that selling on your own, while potentially a hassle, could save you roughly 6% in broker fees. This figure may vary, of course.
If the notion of paying a commission to a real estate agent bothers you, then you might consider selling your property on your own. You will have to put out a sign on your lawn, take phone calls and schedule appointments, use classified ads, hold open houses, and conduct negotiations, all on your own. You may want to hire a lawyer or use discount real estate services. These sales typically are called “for sale by owner” or FSBO. Going the FSBO route means avoiding paying an agent’s commission, but requires the consumer to to do the open houses. Services are available to help FSBO sellers market their properties. For Sale By Owner organizations offer ways to market your home for much less than what a real estate agent would charge--usually a flat fee upwards of a couple thousand dollars--while giving you step-by-step instructions on how to complete a sale.
The most important step is pricing your house accurately. How do you arrive at the right price? The easiest way is to hire an independent appraiser. Most charge $250 to $500 for the service. Also r
esearch what other properties in your neighborhood have sold for in the last couple of years to determine a reasonable asking price. Your county tax department has records of such comparable sales. Before you set the asking price, take into account closing fees, other selling expenses, and the amount of cash you want after the sale. Your home will sell faster if it is priced appropriately.Get the word out. Pass out brochures to local real estate agents. Place an ad in the real estate section of your newspaper. Put up signs advertising your property for sale on your front lawn or in a front window. Post brochures describing the house in public areas and in apartment complexes with prospective home buyers.
Your ad should list the basics such as location, price, number of bedrooms and any unique selling points such as a new kitchen or lake views etc.. The ads that get the most response have an urgency about them. Key words are "seller motivated" or "priced below market." Also owner financing (when the seller holds the mortgage) or help with closing costs will make a difference in phone calls you may receive from prospects.
Star your home selling campaign with an open house and invite all the neighbors around your house. Show them your home's best points and tell them your price. Why? Neighbors are the best promoters of the neighborhood and they all have friends and family who buy homes. Consider telling all your co-workers as well..
Ask open house visitors to sign a guest book so that you have their names and addresses for follow-up. Give them a call within a week to find out whether they are still considering your house or are still looking.
One way to avoid wasting time with anyone is to only consider offers from buyers who are pre-qualified for a mortgage.
Even if you feel sure about selling your house without a real estate agent, interview several agents. Interviewing agents may reaffirm that you can handle the sale yourself, or the interviewing process may convince you that you'd be better off hiring the best agent you contacted. You'll probably pick up some helpful advice and information you can implement if you do decide to sell yourself.
Because most buyers work with real estate agents, be sure to mention in your ads and listing that you "will cooperate with agents." This statement tells local agents that you are willing to pay them a commission if they procure the buyer who ultimately purchases your house.
You should have a real estate attorney draw up a one time only open-listing agreement. This document should clearly state that you don't have an exclusive agreement with the agent but that you're willing to pay a fee if the house is sold to a specific buyer that the agent is referring to you. This fee is negotiable and should be included in the agreement. Y
You will need is a "contract of sale", the document that shows the price you and a buyer have agreed on and the closing date. Six to eight weeks is usually plenty of time. You will probably want a good real estate attorney to help you draw up these papers. Many owners use copies of realtor agreements or forms found in published handbooks.
You Your Success,
Andre Plessis
Andre Plessis
"The Mortgage Guru"
"A Mortgage Professional
whose primary goal is to provide the expertise, guidance and skills necessary to
obtain the best mortgage to meet your personal needs".
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