Real Estate
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The truth is that only about ten percent of owners successfully sell their
home on their own. That varies by region and the number goes up a tad for
professional real estate investors because they are more familiar with real
estate than your average homeowner.
Those that do sell their home successfully usually accept not only a lower
price, but they net less than if they had sold it with a professional qualified
real estate agent helping them - especially in an uncertain market with high
inventory. Like today.
It would take almost nine months to sell all the homes currently on the market
at the current sales pace, even if no new homes came on the market. That is with
all the advantages of a real estate agent and the Multiple Listing System (MLS)
at your side. On your own, it's even harder.
So why is the MLS such a big help? Well, if you run an ad to sell your home,
you not only have to pay for the ad but ads have limited visibility. That limits demand. As everyone knows,
the more demand for a product, the higher the price; the less demand, the lower
the price. By sharing information about your home via the MLS with all other
Realtors and brokerages in the area, you increase demand for your home. Realtors find those
homes in a database called the MLS. Unless you are an agent, you do not have
access to the program. As a result, not only is your agent working to sell your
home, but so are all the other MLS members, too. Your agent's efforts are
multiplied by those of all the other agents in the area. More demand.
Higher price.
What are other problems with selling by owner? A FSBO (For Sale by Owner)
sign attracts lowball offers, for one thing. Have you ever stayed up late and seen an infomercial
about how to get rich in real estate? The number one method is to find a steal,
often by taking advantage of someone who does not know what they are doing.
Then there are phone calls. Who answers them? What do you say? How do you convince them to come look at your home when you're available to show it? How do you convince them to write an offer? Where do you get the right forms?
What forms do you need?
That's just the beginning.
Is the buyer qualified? Do they have money in the bank, good credit, can they get a mortgage loan?
There are also lots of details. Do you need an escrow company or a lawyer? Termite inspection? Home inspection? Warranties? Title inspection?
And when there is a problem, who handles it?
It isn't easy and we've just barely scratched the surface.
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When buying a vacation home by pooling resources with a friend, you need to be aware of possible complications. All issues should be discussed and determined in advance.
Friends usually take title as "tenants in common". Each has an equal right to the property and can sell or transfer his or her own interest independently. You should have a written agreement on how these transfers will be handled even if you think it will never happen. Will the remaining original owner get right of first refusal?
Agreements should specify all financial obligations, like mortgage and maintenance. Should there be a fund for repairs? Who gets to use the property and when? What happens if one couple divorces? Other possible reasons for disagreement such as pets, smoking, and parties should also be specified in the agreement.
When selling your home you need to remove emotion from the equation and de-personalize the property. Think of your house as a marketable commodity - property.
If there is a new home sales tract near you, go visit. You will find good examples of wonderfully but sparsely furnished homes that anyone could live in -- they are anonymous. There may be a baseball glove in the boy's room, but no family photos on the walls. There may be "personality" - but no person.
The reason you want to make your home "anonymous" is because you want buyers to view it as their potential home. So put away family photos, sports trophies, collectible items, knick-knacks, and souvenirs. Put them in a box. Rent a storage area for a few months and put the box there. Because the next step is to remove clutter.
Apartment complex managers say most people don't read the whole lease before signing it. Later, if there's a problem, they'll say, "You didn't tell me that." Then they'll read their lease.
The lease is an agreement between the owner and the person renting an apartment. There is no standard lease, some are long and some are short. Most cover similar issues, but the detail can differ significantly. Failure to know the terms of a lease is not a defense for violating the terms. Nothing said orally will change any part of the lease. If you don't agree with all terms, don't sign.
If the apartment manager and tenant agree to any change, both should initial the change, as well as additions or deletions to the contract.
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