For Sale By Owners are losing Thousands of Dollars
For Sale By Owner
I am a strong advocate of self-budgeting, frugal shopping and penny pinching, but it is amazing to me what mistakes some people will make in an effort to “save money”. You have heard the old adage “If you think an expert is expensive…wait until you hire an amateur”. Truer words have never been spoken especially when it comes to For Sale By Owner situations.
Some people will say the “market is red hot” others will tell you it is “barely moving”. You hear it over and over again. And both statements are true depending on your price point. There becomes a point during the transition from buyers market to sellers market that going FSBO can be met with some success in some price points. That time has come and gone in the Southern Maryland Market for the foreseeable future.
Full-time, real estate professionals have the advantage of knowing what is going on in the market place before anyone else, especially when they successfully complete as many home sale transactions as DeHanas Real Estate Services does. The market has become increasingly competitive for home sellers, and the buyers are being rewarded with, what were just a few years ago, unimaginable deals.
The trends go something like this: When a sellers market begins, prices start to climb and the buyers can expect to pay full price with some closing assistance, and a little flexibility on the terms of the contract. However as the demand for housing goes up, prices rise, closing assistance goes away and contract terms turn in favor of the seller. The ‘real deal’ can no longer be found in money savings, but in getting the house of choice. The trend works in reverse when it becomes a buyers market. Interestingly enough, the Southern Maryland market is experiencing both a buyers market and a sellers market, depending on the price point you are working within.
Multiple offers are back! That’s right, there are homes for sale that are receiving 4 or more offers at the same time, something we have not seen in several years. A “For Sale By Owner” will most likely never see this “phenomenon”, and as a result, will not have the opportunity to have realized a higher net profit from the sale of their home. When a home seller is in a multiple offer situation, the price and terms become more favorable than it would had there not been competing offers.
Another interesting phenomenon is the way buyers are finding homes for sale. It takes too much time and effort for a home buyer to drive around and look for homes for sale. A huge majority are finding their home of choice via the internet. The real estate agent who is the most tech-savvy has the best opportunity of creating a multiple offer situation, by their ability to get the information to the public the fastest.
So how should a seller go about finding the most aggressive real estate agents? It is actually easier than you think. Look in the papers, on TV, in homes magazines, on Internet search engines, referrals from friends, and yard signs. If you see a trend of the same agent coming up over and over again, that is the agent who will offer you the best opportunity to increase your bottom line. You should also choose an agent who is in the business on a full time basis.
For a free market evaluation, and analysis of your home, call DeHanas Real Estate Services, expert home sales agents offering a full line of real estate services. 301-638-3443 or 301-870-1717. Or log onto our website at www.dehanas.com.
