Posted on 08/21/2024 3:12:08 PM PDT by where's_the_Outrage?
No matter if the market is hot or cold, they still pop up: For Sale by Owner listings, otherwise known to Realtors as "FSBOs." These are houses put up for sale by the people who own them - without the help of a real estate agent.
Homeowners who eschew professional assistance can start the home-selling adventure on their own, but are often unaware of the DIY pitfalls. Here are the pros, cons, and everything else you need to know about these kinds of properties.
What to Know About FSBO Listings As a Realtor, I'm very aware of those DIY pitfalls. Take, for example, my neighbor, who has his home back on the market as a FSBO. Third time's a charm, right?
Jeff and Linda Brandt of The Brandt Group in La Quinta, California, have tried to help the guy with pricing and listing advice over the years to no avail. "Jeff told him a realistic price he didn't like," Linda explains. Now, the house is languishing on the market with a high price tag.
My neighbor has ignored the cardinal rule of home selling: realistic pricing.......
My neighbor did advertise on the big Z (Zillow, of course), but did not put a sign in the yard for drive-by prospects. His amateur room photos were dark and blurry, underscoring the marketing importance of compelling images. He then cemented his doom by warning agents off from bringing a buyer by - he insisted on representing both sides of the transaction. Unfortunately, most people won't be comfortable with that setup......
There are some sobering statistics to consider before planting the red-and-white "Home for Sale" sign in the front lawn yourself. Not only do agents avoid FSBOs
(Excerpt) Read more at msn.com ...
Regarding the unsold 4 bedroom apartment ....
People do not want to pay premium for something they have to finish and put more cash into
It’s ugly. Looks like an office. No warmth. Pics taken in winter make it look like prison in Siberia. And it’s all gray?? depressing AF. The view is nothing to put on a postcard.
There is a $765 a MONTH maintenance fee
The bathrooms are gross and cheap and need to be started over from scratch
At 1600 square feet with one main living area you’ve got a studio apartment with one decent sized bedroom, one kid room, one walk in closet, and a pantry. What single is going to want to live there, what family is going to want to live there? Any childless couple will be looking for something more attractive for that money with a lot less work.
My advice to the seller is suck it up and finish the job. Hire a decorator.
I agree with you that the condo board may have to suck it up and pay people to finish the job in order to sell it.
I don’t know if it is ugly, I don’t know how to quantify that.
I like the open main room, because you have a lot more freedom to organize how you use that room. I tend to be very utilitarian, so a room that is more usable to me is a more attractive room to me.
However, I don’t like the vaulted ceilings, because of the fact that you have to change the lightbulbs. That’s a problem for me because it means getting up on a couple of ladders, with a board between the two of them. That’s unnecessarily dangerous to me. Allthough, I have found light bulb extension poles that are supposed to allow you to change lightbulbs on high ceilings.
The rooftop units could be a problem. They might give off a constant hum. Not everybody can put up with that. I would want to put sound buffers between the unit and my condo, if it were possible.
The $765 is Canadian, not American. It’s about $560 USD. It is offset by heat/air conditioning and water. Where I live, the condo association takes $340/month and I still have to pay for my own heating and water and electricity.
So incredibly insulting. I am a retired Realtor of thirty years. Not one complaint and mostly heartfelt thanks from my clients. Every transaction I entered was with the utmost care, honesty and always THE BEST INTEREST OF MY BUYER or SELLER. Actually, I can not tell you the times I have been lied to by “buyers and sellers”. A few early questions tells a Realtor with a good eye, “ever have any foundation leaks”? Answer “NEVER). How is your roof? Answer, “never a problem”. “Do you have any liens on your property”. “No way”. Then as a Realtor, run like hell.
A good real estate lawyer can dissect a FSBO transaction in about five minutes and they take cases on a contingency basis. The goal is NOT to get sued in the first place and FSBO transactions are lawsuit magnets.
Title insurance is primarily offered by the closing attorney as policy for the buyer’s protection (to show the deed was properly searched and there are not problems) The seller can ask the closing attorney to protect himself for one but it’s extra. I’ve done this two times....cost about $500-$750
Good on you. Nothing more insulting than the typical manipulations of the typical realtor.
Inspectors are like every other profession.
They range from outstanding to miserable.
The guy I hired had rough hands and dirty nails—obviously had done real work—and he knew his stuff.
A five minute discussion would eliminate the idiots.
For the house I’m in now, my ‘must haves’ were
Walls
More Walls
Doors everywhere
Yard for the Dogs
Office for Himself
A large kitchen lab for me with lots of walls and doors so i could lock myself in there.
Actually got everything after looking for 3 months or so, my realtor and I had the best conversations about open concept vs walls and doors. Neither of us convinced the other :)
Well, I ALMOST got everything. It’s a fun, quirky, 1959 tudor revival with walls and doors everywhere and some added for good measure by the former owners, but my kitchen is small and sucky. At least it has walls and doors, though.
As for that apartment, it needs some color and some life. Plants, crystal lights, a few paintings, make it into an art studio, and yes finish all the projects. Maybe cut it down to 3 bedrooms and enlarge or repurpose the 2 smallest. Upgrade those bathrooms - those shower stalls are the cheapest builder grade you can get. Depressing as hell. The kitchen is dismal with no storage planned out. Take pictures in summer spring or fall.
Nothing in the photos is welcoming or warm or enticing.
God save us from gray.
As is it’s a bleak looking, expensive project. When a place isn’t moving it’s usually because it has dead bodies all over or the price is too high.
Maybe just me. I have my own taste, but I’ve rehabbed and sold a few homes and shopped for more. Zillow and the Behr Paint website are my entertainments :) I was an unsuccessful real estate agent, too. I shoulda been a decorator instead.
“A five minute discussion would eliminate the idiots.”
Unfortunately, no expertise is needed to be an inspector, just a Saturday afternoon class.
You’re a rather nasty sound if I might add.
Yeah. I get it. My husband was a contractor who built custom homes for 3 decades before he passed away. Although he subcontracted for the most and rarely dealt directly with the realtors, we understood what was reasonable pricing and our homes were kept in tip top shape. When we bought he was the first home inspector, yet we always had an official guy come in which my husband met and went over it again with him for the report. We had fabulous results with FSBO. But I can’t deny people with zero experience buying/selling, or with no understanding of the construction process may run into trouble.
I’ll never forget one home we wanted to buy based on location and amount of land. We walked in with the realtor and first thing they said was the previous owner had built it himself. As we go to the living room there was a light switch with literally 10, yes 10 on off switches! Mike started flipping lights on and off and said, we are leaving. I said don’t you want to at least look and he said not really but let’s see the basement. The steps were narrow and steep. He wouldn’t even walk down and we left. He said anyone dumb enough to put half the first floor light switches in one location/fuse and build rickety steps no where near code shouldn’t have been allowed to build.
Title insurance protects the mortgage lender if there is an undisclosed fault with the title that needs to be cured to make the property legally transferrable
That’s what I essentially said meaning the buyer is the lender. The one truly at risk until the loan is paid. Regardless, normal title insurance is NOT for the purchaser; it’s for the lender. Unless the buyer pays cash or something. To protect yourself outside that norm you have to buy a separate policy from the closing attorney usually. I’ve don’t this twice already.
Nearly 50 reported cases, from appellate courts, on Sec. 5.008 alone. If you figure 1% of filed civil lawsuits produce a published opinion from an appellate court, and that most letters from an attorney, threatening to file a lawsuit, do not actually wind up in a filed lawsuit, that works out to over 10,000 times Texans have put that law to use.
The owner simply doesn’t see a defect or malfunction or simply never looked can say, ‘no’ or ‘unknown’. That leaky dishwasher? Never knew.
Can someone lie? Gee officer, I didn't know that tiny baggie, with the stuff that looks like powdery rock salt, was actually crystal meth! Of course. That doesn't mean they will get away with the lie.
>>>>
Title insurance protects the mortgage lender if there is an undisclosed fault with the title that needs to be cured to make the property legally transferrable
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It protects the buyer too, lenders will require it. But a naive buyer could pass on title insurance if they wanted to (dont know why they would).
Also, buyers need to carefully read the preliminary title report and supporting information because title insurance policies often include plenty of exclusions/exceptions that can bite you. Especially important if you are paying cash. If you have a lender they will scrutinize policy as well to protect their collateral.
I bought some property and the title ins policy was excluding an old railway easement. We asked them to remove that exclusion (it was for a seemingly defunct railway) before closing and they did so.
“The goal is NOT to get sued in the first place and FSBO transactions are lawsuit magnets.”
Nope. They can and do use the same forms and paperwork an agent uses. Agents lend NOTHING to the credibility nor accuracy of any real estate transfer.
Selling through a real estate brokerage comes with a guarantee of the accuracy and experience/expertise of the agents involved. This guarantee is backed by the brokerage assuming the liability for errors and omissions during the transaction. A good agent who is active and knows the area you're interested in is worth her weight in gold.
As a real estate investor for the past 20 years, there are only two types of people I go out of my way to avoid qat all times...lawyers and know it all FSBO sellers. 😉
FSBO with guidance from a RE attorney. Flat fee, standard contract, review terms.
Real estate brokers should have negotiable terms. If the do alot of work then 2-3%, if not, 1% or 0%.
FSBO sellers are like a roulette wheel.
Do you feel lucky?
Well, do ya?
Lol.
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