Miami real estate news and information

TEPID RESPONSE: “FOR SALE BY OWNER”

“FOR SALE BY OWNER?” ….  CONSIDERING SELLING  YOUR PROPERTY ON YOUR OWN?  YOU MAY BE GREETED WITH A RATHER TEPID RESPONSE  AND HERE’S WHY: 

1) BUYERS ARE OFTEN  UNCOMFORTABLE DEALING DIRECTLY WITH A SELLER  (FOR SALE BY OWNER) FOR A NUMBER OF REASONS.

Home for sale

2) BUYERS, MORE OFTEN THAN NOT, WANT SOMEONE  (OTHER THAN THEMSELVES) TO NEGOTIATE CONTRACT  TERMS ON THEIR BEHALF.  ASKING A BUYER TO WORK DIRECTLY WITH THE SELLER CAN PUSH A PROSPECTIVE BUYER BEYOND THEIR COMFORT LEVEL. MOST  BUYERS WANT A REALTOR OR ATTORNEY (OR BOTH) TO PROVIDE THEM WITH INFORMATION AND GUIDANCE THROUGHOUT THE PROCESS:  BUYING, INSPECTIONS, LOAN APPLICATION AND APPROVAL, TITLE AND CLOSING. 

3) PROPERTIES LISTED  FOR SALE THROUGH  REAL ESTATE  COMPANIES COME WITH  BUILT-IN SUPPORT SYSTEMS.  THAT’S  BECAUSE CONTRACTS & NEGOTIATIONS, INSPECTIONS, MORTGAGE APPLICATIONS,FINANCING,TITLE …  THE ENTIRE PROCESS… ARE  OVERSEEN BY PROFESSIONALS WHO DO THIS ALL THE TIME.

4) BUYERS DON’T PAY REAL ESTATE COMMISSIONS  IN FLORIDA. SO FOR THEM, THE SERVICES OF THEIR REALTOR ARE ‘FREE’.  IT IS THE SELLER WHO PAYS COMMISSION, IF ANY …  (AND COMMISSIONS  IN FLORIDA TYPICALLY ARE SPLIT BETWEEN LISTING AND SELLING BROKERS).

5) AS A ‘FOR SALE BY OWNER’ (FSBO), IF YOU INTEND TO HONOR  A BUYER’S AGENT, TELL EVERY ONE OF YOUR PROSPECTIVE BUYERS .  IT MAY JUST ENTICE THEM TO MORE SERIOUSLY CONSIDER YOUR PROPERTY. (FSBO SELLERS VERY OFTEN WILL  HONOR A BUYER’S AGENT WHO BRINGS A BUYER… BUT THAT’S NOT ALWAYS THE CASE… AND ONE SHOULD NEVER ASSUME.) 

6)  AS A REALTOR, I’M OFTEN ASKED ABOUT “FSBO” LISTINGS . THE MOST FREQUENT CONCERN THAT BUYERS RAISE IS WHETHER THERE MIGHT BE SOME UNDERLYING MOTIVATION FOR A SELLER TO SELL “BY OWNER”…. BEYOND SIMPLY SAVING ON COMMISSION.  THE QUESTION MOST FREQUENTLY ASKED  IS:  “IS THERE SOMETHING THE SELLER DOESN’T WANT US TO KNOW?”  SELLER’S DISCLOSURES STILL APPLY, ALONG WITH  LEGAL RAMIFICATIONS PERTAINING TO PROPER DISCLOSURE… BUT THE RECURRING QUESTION IS ONE I HEAR FREQUENTLY.  I ALWAYS RECOMMEND GETTING A THOROUGH HOME INSPECTION BY A REPUTABLE INSPECTION COMPANY, AND HIRING A REAL ESTATE ATTORNEY TO REVIEW AND OVERSEE ANY ACQUISITION.  AND THAT APPLIES WHETHER IT’S A ‘FSBO’ OR A “REGULAR” SALE LISTED THROUGH A REAL ESTATE COMPANY OR BROKER, OR A SHORT SALE, OR A FORECLOSURE PROPERTY.

7) “FOR SALE BY OWNER”  IS OFTEN SIMPLY A STRAIGHTFORWARD EFFORT TO SAVE ON COMMISSION, SINCE THE SELLER PAYS  REAL ESTATE COMMISSION IN FLORIDA…. BUT HOW DOES THAT AFFECT A BUYER’S COSTS?  EVEN BUYERS WHO PLAN TO HIRE A REAL ESTATE ATTORNEY TO OVERSEE THE TRANSACTION OCCASIONALLY WONDER IF THEIR LEGAL FEES WILL BE HEFTIER IF THERE’S NO  BUYER’S AGENT INVOLVED.  LEGAL FEES VARY …  ASK.

8)  THE VAST MAJORITY OF  HOMES LISTED “FOR SALE BY OWNER”  ACTUALLY END UP WITH A REALTOR INVOLVED IN CLOSING THE TRANSACTION.  PROPERTIES LISTED THROUGH A REALTOR CAN TYPICALLY SELL FASTER THAN  “FOR SALE BY OWNER”.    BUYERS AND SELLERS SHOULD KNOW THAT WITH ALL THE ASPECTS OF A SALE TO NEGOTIATE AND OVERSEE,  BUYING A HOME IS BY NO MEANS JUST ABOUT “PRICE”. 

9) HOME-BUYERS ARE OFTEN QUITE UNCOMFORTABLE NEGOTIATING ON THEIR OWN BEHALF. HAVING A BUYER’S AGENT OR REAL ESTATE ATTORNEY CAN SMOOTH OUT NEGOTIATIONS, AND BENEFIT THE ENTIRE TRANSACTION.  EMOTIONS CAN (AND DO) GET THE BETTER OF  PROSPECTIVE BUYERS AND CURRENT HOME OWNERS.   BUYING A HOUSE IS MORE THAN JUST AN INVESTMENT…  IT’S A HOME.  NAVIGATING THE COMPLEXITIES OF CONTRACTS AND  COORDINATING ALL THE MOVING PIECES REQUIRED  JUST TO GET TO CLOSING TABLE CAN BE DAUNTING … AND DOING IT WITHOUT HELP CAN BACKFIRE. 

10) A HOME PURCHASE IS AMONG THE MOST IMPORTANT INVESTMENTS ANYBODY WILL MAKE IN THEIR LIFETIME (AND OFTEN IT’S THE MOST EXPENSIVE).  NOT MANY BUYERS (OR SELLERS!) ARE WILLING TO GO IT ALONE.  MOST WANT A REALTOR  AND/OR A REAL ESTATE ATTORNEY  TO HANDLE THE INTRICACIES OF THE TRANSACTION (LOCATING,LISTING, MARKETING, SHOWING, NEGOTIATING, OVERSEEING INSPECTIONS, MORTGAGE APPLICATIONS & APPROVALS, TITLE, SURVEY, AND CLOSING…) 

IF YOU ARE LOOKING TO BUY OR SELL PROPERTY IN MIAMI … AND YOU ARE NOT ALREADY WORKING WITH AN EXPERIENCED LOCAL REALTOR REALTOR …  PLEASE CALL ME.  I WOULD LOVE  TO HELP YOU  FIND THE RIGHT HOUSE… OR SELL YOURS… (AND MAKE IT EASY!)  …. AND  GUIDE YOU THROUGH THE  WHOLE BUYING/SELLING PROCESS. YOU CAN REACH ME ON MY CELL ANYTIME AT 305-793-1365   OR  YOU ARE WELCOME TO  SEND ME A NOTE.  I LOOK FORWARD TO TALKING WITH YOU!

To receive my blog posts directly to your inbox, click here to subscribe.