In today’s market, with homes selling quickly and prices rising some homeowners might consider trying to sell their home on their own. In the industry, this is referred to as a For Sale by Owner, or “FSBO”. While being a FSBO might seem to have its advantages, there are reasons why nearly 9 of every 10 homes are still sold with the help of a REALTOR®.
If you are thinking of selling your home on your own, first consider these challenges you will face by not using a REALTOR.
1. Setting the right price
Overpriced homes don’t sell. On the other hand, no seller wants to risk underpricing their home. FSBOs frequently misjudge the value of their home, basing their pricing decisions on inaccurate information they find online or the common misconceptions about the current state of home prices and the overall real estate market. REALTORS® have the expertise, knowledge, and resources to help sellers choose the best price for their home.
2. Being available for showings
Are you going to be available on short notice to show your home to prospective buyers? Your job, family, and personal life can make for a very busy schedule. This makes it very unrealistic for many of us to simply drop what we are doing and rush home to meet buyers for a showing. One of the roles of a REALTOR is to take the demands away from sellers and be there to represent your house any time a buyer wants to see it.
3. There’s more to negotiating than you may think
Negotiation is a normal part of any real estate transaction, but many FSBOs do not consider all the different people they must be prepared to negotiate with, including:
- The buyer who wants the best deal possible for themselves.
- The buyer’s agent who solely represents the best interest of the buyer.
- The home inspector(s) who works for the buyer, not the seller, and will almost always find some problems with the property.
- The appraiser if there is a question of home’s value.
4. Exposure to prospective buyers
The days of considering a good marketing plan to be a sign in the front yard and some flyers are long gone. Studies have shown that out of 10 buyers 9 use the Internet to search for homes while just 2 are looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?
5. Results come from the Internet
How do we know the Internet is an effective marketing tool? Because it generates real results! A recent study from the National Association of Realtors showed 43% of buyers found the home they actually purchased on the Internet. That is in comparison to only 9% from a yard sign and 1% from a newspaper. Having a strong Internet strategy when selling your home is crucial.
6. FSBOing is not what it used to be, the process today is difficult and complex
Over the years more and more requirements have been set in place and the paperwork involved in selling and buying a home has increased dramatically as industry disclosures and procedures have become mandatory. This has made the process of real estate transactions a complex one, giving reason for why we have seen a drop in FSBOs from 19% to 9% in the past two decades. If you are thinking of not using a REALTOR to sell your home, ask yourself, how familiar are you with reviewing contracts and negotiating contingencies?
7. Using an agent will net you more money
Many homeowners are drawn to try selling on their own because they believe they will save the real estate commission. However what they don’t realize is that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. In reality, the seller and buyer can’t both save the commission.
Studies have shown that the typical FBSO home sells for $208,000 while the typical house sold by an agent sells for $235,000. FSBOs are more common in lower price point markets so this doesn’t mean that an agent can get $27,000 more for your home. However, it does show that selling on your own might not make sense.
Before making the decision to try selling your home on your own, contact a REALTOR in your area and see what they have to offer.
Semonin Realtors ® selects one weekend a month that we call a Super Semonin Weekend. It is a weekend we focus upon as a company to hold as many open houses as possible. We encourage visitors to register for a drawing to win your choice of an APPLE iPad or a $500 Gift Card to Lowe’s, Kroger or Target!
The winner of June’s Super Semonin Weekend is:
Kim L. of Louisville, KY!
Thanks to those who attended a Semonin open house during June’s Super Semonin Weekend.
The next Super Semonin Weekend will be held: JULY 18-19
For more information visit http://www.semonin.com/supersemoninweekend.aspx
You are probably familiar with websites that have emerged in recent years that attempt to estimate what your home is worth. If you have used any of these tools you may have wondered where the number comes from, or why the price one website gave you is different from what another one gave you. So how are these online guesstimates configured?
Websites use computer programs designed to make home value estimates, or averages. These are known as Automation Valuation Models (AVM). The estimates these models configure are usually based on public records like you might find from your local Property Value Administration, or “PVA”, department. The problem with these types of models is the automated estimates calculated do not figure in important factors like the condition or uniqueness of a home. So, for example, if you have owned your home for 10 years and spent lots of time and money making upgrades and renovations, you have added value to your home, however that extra value is not always reflected in the estimates generated by AVMs.
Not every website uses the same model, which is why various sites rarely agree on the price your home is worth. This creates problems during negotiations since the seller will want to believe the most accurate website is the one that gave the higher estimate, however, the buyer will fight that the site that gave the lower estimate is the correct one. So which one is right? The truth is, home value estimates or “guesstimates” that you can get on various websites are helpful when you want to get ball park figures and an overall feel for the market, but when you go to list your home for sale, pricing decisions should never be based on a website’s generic analysis.
The responsibility of Realtors is to make sure you have as much information as possible to base your decisions on. An AVM estimate can give you an idea of your home’s value, but a comparative market analysis or CMA will best determine this number. Realtors have the experience, knowledge, and tools to provide you with a more comprehensive estimate based upon a visit to your home where no automation model can go.
We offer home value tools on our website at www.semonin.com/home-values.aspx. What makes our tools different from others is the engine. The home value automation tools we offer on Semonin.com are powered by Collateral Analytics. Collateral Analytics is the top rated automated valuation model for bank grade information. Banks rate them the best in the country for giving them information so they can make wise investment information.
We offer consumers two tiers of AVMs. The first we refer to as the Consumer AVM (CAVM) which pulls public records on a frequent basis to estimate a home’s value. The CAVM allows you to enter your address, or any residential address in the country, and instantly find loads of information right at your fingertips. You will find a range and an estimate of what a property is worth as well as comparative data for other homes nearby.
The second tier of home value automation available on our website is called an Interactive AVM, or I-AVM. The I-AVM takes home value estimation one step further and uses information from a variety of sources. This model combines public PVA records, local MLS data, and predictive economic modeling to provide what is called a “Bank Grade” automated value which is what lenders use in determining mortgage loans. To access the Interactive AVM visit www.semonin.com/home-values.aspx and click on the “Get Report Used by Lenders” link.
The main reason most buyers look to real estate agents is because they want help in finding the right home. Throughout this process of finding the right home to purchase, buyers often find that working with a real estate agent also has a number of other benefits as well.
In a 2014 survey conducted by the National Association of Realtors, buyers indicated that helping them understand the process of purchasing a home was the most important benefit of using a agent. Following that, over half of all buyers said their agent was also beneficial because they pointed out features or faults with a property that they had not or would not have noticed.
Overall the benefits that buyers mentioned in the survey have to do with the wide array of valuable information agents provide, including insight on certain areas and neighborhoods and trusted service providers that are needed during the buying journey.
Semonin Realtors has just launched a brand new real estate mobile app that is available for your iPhone, iPad, or Android. This home search app is one-of-a-kind in our market and has a number of powerful features that enables you to access virtually every listing in Kentuckiana. You are able to calculate commute times, save your favorite listings and share them with friends and family, and locate current homes for sale near you using your phone or tablet’s GPS capability. One of the coolest tools is known as SemVision. When SemVision is turned on, you can move your phone or tablet around to scan your surroundings. Listings will appear on your screen indicating the direction of where a home is for sale within of a mile of your current location. For more information about the new Semonin Realtors mobile app CLICK HERE.
To download the app go to app.semonin.com. Desktops users will be asked to enter their cell phone number so that a text can be sent with a link to download it!
Winter has officially left us and we are entering real estate peak season. Buyers are ready and eager to get out and start shopping for their next home, but there is just one problem…there aren’t enough homes for sale. When the number of buyers exceeds the number of homes for sale, it is seller’s market. Right now in this kind of market, sellers are getting 100% of their asking price or more, and many are receiving multiple offers forcing buyers into a bidding war which ultimately drives the sales price up. Not only are sellers getting the money they want for their property, but they are also selling extremely fast. Homes are literally flying of the market, some selling within days or even hours of being listed. Realtors around the area are claiming that a home will sell before they even get a chance to schedule a showing for their buyers. It cannot be stressed enough that if you have been considering the idea of selling your home, NOW is the time because the market is literally starving for inventory!
The term “Months of Inventory” considers the number of homes on the market and the pace at which they are selling. The number basically means that if existing homes were to continue selling at the same rate as the most recent month of data, the current inventory of homes would be sold by that many months. Housing experts consider a market to be ‘normal’ or balanced when months of inventory is around 6. A number higher than 6 would mean there is too much inventory and we would be in buyer’s market. The Market Watch chart on the right shows that in March the months of inventory took a dip in the Greater Louisville market, reaching less than 4.5. Many of real estate professionals in our region who have been in the business for years have never seen inventory this low.
While sellers may reap the benefits of a low inventory market, buyers experience frustration with not being able to find the right house, or finding the right house and the seller accepts another offer. Many homeowners are hesitant to list their home right now in fear of not being able to find another one, however receiving a higher sales price in ample amount of time and little effort makes selling very appealing in this type of market.
CLICK HERE for market information updated every Tuesday afternoon.
Semonin Realtors held our annual “Bowling to Build” fundraiser yesterday at King Pin Lanes in J-Town. Through the attendance of Semonin agents, staff, and guests and their generous donations we raised over $2,300 for our next Habitat for Humanity home, and we had a GREAT time doing it! We are gearing up to build our 18th Habitat home in the fall, and it is so great to have such an enthusiastic and supportive team at Semonin Realtors. We would like to thank everyone who came out and hit the lanes yesterday, those who donated all the fantastic door prizes, and 2-10 Home Buyers Warranty for sponsoring this event.
To see the full photo album visit our Facebook Page!
No one ever wants to think about something bad happening to their home, such as being destroyed in a fire or severely damaged by another catastrophe. However, such things do happen whether you are expecting them or not. Many homeowners take comfort in their homeowner’s insurance policy, but the truth is that insurance policy may not be as protective as you might think if you don’t know or can’t remember everything that was destroyed in your home. Think about this for a moment. Without looking, can you list every kitchen utensil or cookware item you have in your drawers and cabinets? How about every cleaning product under the sinks or in closets? Do you know the brand and model of your appliances and electronics? To receive the proper amount of money from your insurance company after a fire or other disaster, you will need to answer each of these questions and many, many more. You may think, “Oh, that will never happen to me”, but we guarantee that neighbor or friend, or family you know from church or school, thought the exact same thing before it did happen to them. Creating a detailed home inventory is a responsibility that every homeowner should take the time to do.
To start creating your home inventory, go around your house and make a list of each major item, including as much detailed information as possible. For appliances and electronics be sure to make note of the brand, manufacturer, model and serial number, when you purchased it and the price you paid. For other big ticket items such as collectibles, art, and jewelry, try to keep sales receipts or appraisals together and even scan them for further safe keeping. It may take some time, but it is important to go through this process diligently, making sure no valuables, such as silverware, china, or even tools, are overlooked. Create a spreadsheet on your computer by using a program like Microsoft Excel or downloading a template or app from the Internet to create and save this information in an organized spreadsheet.
After larger items are documented, go from room to room and take pictures of the rest of your belongings on your camera or smart phone. Open up drawers, closets, and cabinets and take snapshots to quickly capture everything that is in your home. Store these photos, as well as your spreadsheet and any scanned documents, on jump drives and store them in multiple places other than your home, such as in a drawer at the office or in a safe deposit box at the bank.
Keeping a thorough inventory of your belongings can be invaluable if you are ever faced with a disaster and have to file a claim. It will also enable you to ensure your insurance coverage is sufficient enough to protect all of your family’s belongings. Supplying these documentations of lists and photos to your insurance provider can help you receive a settlement fast and avoid any insurance nightmares.
HomeServices Kentuckiana Insurance is a part of Semonin’s family of services. Contact a representative today to learn more about your homeowners insurance policy!