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June 13, 2017 by changescapeweb

10 Reasons Why For-Sale-By-Owners (FSBOs) Fail!

 

Homeowners trying to sell their homes on their own — for-sale-by-owners (FSBOs) — are driven by several reasons. Although most of them want to save money that they would have otherwise spent on real estate commissions, a few others take the FSBO route because they feel they don’t need a professional to sell their home.

Whatever the reason for attempting to sell solo might be, data from a National Association of Realtors survey shows that less than 10 percent of all home sales are FSBOs.

Top reasons why FSBOs fail in real estate

There are a lot of reasons why For-Sale-By-Owners fail and do not sell. Some of the top among these are:

1. Too many people to negotiate with

Those deciding to take the FSBO route often have to negotiate with many people. Some of them are likely to be:

  • The buyer, seeking the best possible deal.
  • The buyer’s agent, who represents the buyer’s best interest.
  • The buyer’s attorney (in some regions of the nation).
  • Home inspection companies, working for the buyer, which are likely to find some problem or the other with the house.
  • Your bank, in case it’s a short sale.
  • The appraiser, if the home’s value needs to be assessed.

Without the help of experienced real estate agents, dealing with so many different parties alone is often a tough task for homeowners.

2. Homeowners do not know how to prepare the home for sale

A majority of homeowners don’t know about the prelisting tasks that FSBOs should do before they list their home for sale. These usually include:

  • Decluttering.
  • Painting the rooms with a fresh coat of paint.
  • Getting necessary repairs done.
  • Getting the home floors and carpets cleaned by professionals.
  • Ensuring curb appeal of the home.
  • Replacing outdated light fixtures.

Because homes for sale by owners just have one chance to impress potential buyers, neglecting these home sale preparation tips often reduces the homeowners’ chances of selling the house.

3. Owners do not know how to screen potential buyers

FSBOs often have no idea about the difference between prequalification and preapproval, and they don’t know that buyers should ideally be preapproved or at least prequalified.

No wonder they let unqualified buyers inspect the house and waste their precious time. Not knowing if a buyer has the ability to purchase the home acts as a big deterrent for homes for sale by owners.

4. Owners fail to solve buyer’s queries

Handling inquiries from buyers on their listings and coordinating showings for their homes are prerequisites for making a sale. However, many homeowners either aren’t able to handle such inquiries on their homes or don’t have the time for them.

Even organizing showings might become an uphill task at times. Because these days potential buyers and their agents want quick responses to their inquiries, they don’t think twice before moving on to the next potential property if their inquiries and requests are unanswered.

5. Owners don’t understand the concept of ‘golden time’

According to this concept, homeowners get the most money for their homes in the first week of putting the property on the market. The longer FSBO homes stay on the market, the less money people will be willing to offer for them.

If a seller tries FSBO before hiring an agent, the seller loses the “golden time” window. This will eliminate buyers who have already viewed the home and might have made a reasonable offer — but have already moved on.

6. Owners fail to understand the contract procedures

The contract to buy a home involves much more than just the price offered by the buyer. Also, real estate contracts have lots of timelines and clauses and involve several common contract contingencies, such as inspections and mortgages.

Many FSBOs don’t have a firm understanding of such contracts and might not know what they are agreeing to or how to negotiate particular parts of the contract.

7. FSBOs don’t know how to handle the home inspection findings

Home inspections almost always find some issues with houses even when they are relatively newer structures. In such cases, the buyer requests problems be fixed or corrected before moving forward with the transaction.

However, many FSBOs believe that there is nothing wrong with their home, which is why they refuse to address the issues brought forward by home inspections. As a result, the offer falls through.

8. FSBOs incorrectly price their homes

FSBOs often price their homes incorrectly due to lack of experience. They set the price too high, which hinders their chances of closing the deal.

9. FSBO homes lack exposure

Homes for sale by owners are often listed on a few websites, but there are many that don’t allow FSBOs to list their property. Thus, FSBOs are unable to give their homes adequate exposure in the market.

However, when sellers hire a real estate agent, the professional can give a property comprehensive online exposure as well as exposure in the local real estate segment of the newspaper. The agent even has tools to extend the exposure further, which FSBOs don’t have.

10. FSBOs fail in the closing process

Even after an offer is accepted, many things still need to be done prior to the closing. For instance:

  • Get the inspections completed within the allotted time.
  • Ensure the attorney(s) approve contracts.
  • Ensure that instrument survey is ordered.
  • Check if the buyer has obtained written mortgage commitment.
  • Find out if title work is reviewed.
  • Learn whether abstract is redated.

With so many things acting against FSBOs, it’s natural to find very few homes for sale by owners in the market.

Cheryl Jensen is a writer at Total Atlanta Realty. You can follow her on Twitter & Facebook or Email Cheryl Jensen

Article from: https://www.inman.com/2015/07/20/10-reasons-why-for-sale-by-owners-fsbos-fail/

Article image credited to Olivier Le Queinec / Shutterstock.com

P.S. Real estate is really booming this Summer!  Homes are selling fast & for the highest prices in years. It is a great time to put your home on the market.  It is a super time for buyers to buy while interest rates are still low. Don’t miss out on your dream home.  Call me for details today! (314) 691-1320
Click Here to become my Fan on Facebook! <https://www.facebook.com/pages/Saint-Charles-MO/Sandra-Meranda-Coldwell-Banker-Gundaker/342024615060?ref=ts>

Filed Under: Consumer Behavior, Home Sales, Home Selling, Housing Market, Why Hire a Real Estate Agent

January 22, 2013 by changescapeweb Leave a Comment

Top Cities Where America Wants to Live

iStock_000016225671XSmall-300x199Americans seemed to search Realtor.com in 2012 for homes in milder climates.  In fact 7 of the top 12 cities searched are in the southern part of the U.S.  Warm weathered cities dominated the list, with only Chicago being in the Top 7.  It’s important to work with a certified relocation specialist when moving to a new area.

Cities that made the Top 7 list include:

7. Los Angeles, CA

6. Phoenix, AZ

5. San Antonio, TX

4. Orlando, FL

3. Miami, FL

2. Chicago, IL

1. Las Vegas, NV
Find out why these cities topped the list!

If you know someone who is thinking about leaving the St. Louis area, or moving into the St. Louis area, I am a nationally certified relocation specialist with Coldwell Banker Gundaker, covering the entire St. Charles and St. Louis county areas.  I specialize in assisting buyers who are moving into this area, helping them find their dream home and assisting with all aspects of their move.  I also assist the home sellers by getting their homes ready to be sold for the most money possible and in the shortest amount of time.  I love to work with relocating folks!

Sandra Meranda specializes in the St. Charles and St. Louis county home markets.  Contact me for help with finding or selling your home.

Filed Under: Relocation, Why Hire a Real Estate Agent

June 12, 2012 by changescapeweb Leave a Comment

Green Homes in Higher Demand

The number of green homes is expected to increase dramatically in the next 4 years.  Home builders who can offer a combination of higher quality and better value will stand out.  Whether it is new construction, or a home renovation Green construction is in demand.

  • Consumers are seeking green homes because they will save money in the long run, and the are typically higher quality construction.  Consumers are seeking out lower utility costs.
  • Green project costs are now typically in line with traditional construction, a dramatic improvement since 2008.
  • Indoor air quality is also a big driver in the desire for a green home.

Check out this article for more on Green Construction predictions

Whether you are building a new home, or buying a home that has been renovated, selecting a top real estate agent can help you make an informed decision.  Sandra Meranda specializes in the St. Charles and St. Louis county home markets.  Contact me for help with green construction possibilities in St. Charles today!

Filed Under: Green Construction, Why Hire a Real Estate Agent

April 30, 2012 by changescapeweb Leave a Comment

Real Estate Tip – Kitchens Sell a House

One of the most important rooms in the house, the kitchen can definitely help sell a home.  The kitchen is the heart of the home, and still serves as the focal point for the family and for entertaining.  It’s a room that is used every day, and seen by most visitors.  So it is a room that many buyers will want an up-to-date kitchen.

Remodeling and updating a kitchen can be expensive, with plenty of choices in counter tops, cabinets, floors, appliances, so many buyers want the kitchen ready when they move in.

An experienced real estate agent can help you determine how much to invest in the kitchen renovation based on the market research, understanding the area, and how it should be staged.

Carla Hill has written an excellent article about how a kitchen can sell a home.  You need to research what updates make the most sense to help sell your home.  As a top real estate agent in St. Charles, MO, I can help you sell your home by updating the kitchen to what buyers want in the price range.

The busy Spring real estate season is here!  This is the time of year for buying and selling real estate.  There are large numbers of homes at below-market prices & the Interest rates are hovering below 4% !!  The home sale numbers have been increasing every month since June.  It is never too early to start getting your home for Spring also.  Contact me for details today!

Filed Under: Home Selling, Kitchens, Why Hire a Real Estate Agent

October 14, 2011 by changescapeweb Leave a Comment

Select a qualified and trusted real estate agent

Sandra-Meranda-Sold-FastCOLDWELL BANKER REAL ESTATE PROVIDES TIPS ON HOW TO PICK THE RIGHT REAL ESTATE AGENT FOR YOU

A trusted real estate agent provides experienced counsel, guidance and unparalleled local expertise – all essential ingredients for anyone on the hunt for a home.  But for first-time home buyers, the first step can be one of the most intimidating.

To help first-time home buyers, the professionals at Coldwell Banker Real Estate have provided the following tips to identifying the right real estate professional:

1.  Ask around: Friends and family can be the first source of helpful information.  Referrals are the leading source of finding an agent.  If your new to the area or don’t have references, you should feel free to contact the manager of your local Coldwell Banker office.  Once you explain your situation and needs, the manager should be able to suggest a few names.

2.  Questions for potential candidates: As you meet potential agents, you should feel empowered to determine if the agent’s personality and skills are a good match.  Some of the key questions that might help you make a decision include:

  • What is your experience in [name of desired neighborhood]?
  • What is the average price point of homes that you help people buy and sell?
  • Could I speak with some of your past or current clients for a reference?
  • Tell me about the brokerage firm where your work?  How long has it been around?

3.  Examine their online presence: Many real estate professionals are especially savvy when it comes to marketing themselves online.  They list their areas of specialty.  Some post tours of their local areas, demonstrating their expertise.  If the person is highly-visible and socially active online, it is also a good indicator that he or she is connected to the right tools and technology that come in handy for home buyers. Don’t be afraid to inquire about their experience using video when it comes to real estate.  Cutting edge agents can point you toward video tours, community videos and more to give you a real life sense of the areas you are considering.  Buyers can also go right to coldwellbanker.com to find a local office and look at profiles for the professionals who work there.

4.  Go with your gut: After consulting with friends and family, doing research and looking online, the buyer’s instinct is often right on.  He or she will have a good “gut” feeling as to whether a person will be a good fit for the house-hunting process.

A top real estate agent can help you make an informed decisions about  buying or selling your St. Charles or St. Louis Missouri home.  My team specializes in St. Charles County and St. Louis County.  If you are considering selling your home, please contact Sandra Meranda and I’ll get you moving!

Filed Under: Qualifying a Real Estate Agent, Why Hire a Real Estate Agent

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Cell: 314-691-1320
Office: 636-946-2020
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Berkshire Hathaway HomeServices Alliance Real Estate, St. Charles
2171 Bluestone Dr.
St. Charles, MO 63303

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