By Owner University

Why Is My House Not Selling? — Will the Real Estate Market Turn Around Soon?

GuestWriter — Fri, 23 Jul 2010 13:36:17 +0000

By Janice J. Charles

This is a question that is certainly repeated by many a frustrated seller in this “down” real estate market.

So you’ve prepped your property for sale. You’ve de-personalized it, de-clutter it, rearranged the furniture, cleaned out the basement and the garage, rented a storage unit and still nothing!

WHY IS MY HOUSE NOT SELLING?

Have you SERIOUSLY looked at your asking price?

I know that you don’t want to GIVE your house away…but are you stuck on a certain asking price because you had a neighbor down the street who sold their property (a few years ago) in a matter of a few weeks for a price that was much higher than yours?

This housing market is cyclical. There was a huge 8 year cycle which produced 150% appreciation between 1997 and 2005. This”boom” was extend out even further with the availability of low 4% mortgage rates. Although this was a variable rate mortgage which was fixed for 3 or 5 years, it was a major player in the peak of this cycle.

What goes up must come down! And, down is where we are at right now!

US home values have come down 29% from the peak of the market in 2006 compared to values as of October 2009…this according to the S&P/Case-Shiller Home Price Index.

The median home sales price in 2006 was $221,900.

The median home sales price in 2007 fell to $219,000.

The median home sales price in 2008 fell again to $198,100.

Median home sales decreased again in 2009 and will likely end up in the mid $170,000 range. This huge reduction in home prices is mostly caused by the foreclosed properties and other distressed sales. With the prices of these homes being severely discounted…it greatly reduces the median value home price.

There are some pockets of the country that are experiencing an increase in house values. Some areas of San Francisco, Washington DC and a few other metro areas…but understand that it is the LOW prices that are driving the demand for sales…these are areas that have unusually high prices historically…it is a buyer’s market and everyone wants in on a bargain.

It is predicted that distressed properties will continue to dominate home sales in 2010 and that home values, over all, will continue to fall another 4-6%.

This is not good news for anyone who is trying to sell in 2010…it’s still going to be a tough time for sellers.

The real question is “Do you have to sell at this time?”

If you can wait out the market, and it will probably several years before prices start climbing back up, and you do not have to move, you can probably catch the next boom and cash in.

On the other hand, if you are looking to make an upward move to a larger house…keep in mind that the prices of these homes are also reduced. So, weigh your options…take a hit on your house now and make up that loss with the purchase of a “bargain priced” property now.

And the last scenario, if you must sell now, you must be aggressive with your price…because this is a PRICE DRIVEN MARKET.

Good luck to all of you sellers out there!

Janice J. Charles is an online marketing coach and mentor with a 20 year background as a real estate professional. Her passion is helping ” want to be” internet entrepreneurs find success online. You can meet and learn more about her at: http://www.JaniceJCharles.com/

Selling Your Home – Sweating The Small Stuff Pays Off

GuestWriter — Mon, 12 Jul 2010 13:22:43 +0000

By Vivian Olkin

When it comes to selling a home, ignore the old adage. You really do need to sweat the small stuff. No matter where you live, every home has little things that need to be fixed – things that detract from the value of the home. Little things that need to be fixed will make the value of your home go up – along with your asking price.

It may be easy for you to overlook cracked tiling in the kitchen, holes from your son’s errant baseball, that dripping faucet in the laundry room, but for a prospective buyer, these are red flags that may indicate your home hasn’t been well maintained.

Here’s a list of some easy fixes to problems that you might overlook:

Open and shut. Make sure that each door in your home closes and locks properly. Buyers may mistakenly think that a sagging door signals a serious foundation problem.

Light work. Put in new light bulbs in every room. The clean, bright light from a new bulb will make your home shine.

Squeaky clean. Clean your home from the attic to the basement! Don’t forget to dust blinds, vacuum out light fixtures, and wash fingerprints off odd spots – like the ceiling. Pay particular attention to the windows. Recently, I found myself frantically cleaning some dirty windows at a home that I listed and that house sold in a week. (Your mileage may vary – but clean windows won’t hurt!)

Under pressure. Pressure wash the exterior of your home. Make sure you clean all of the exterior of the house itself – bricks and siding, foundation and eaves. You should also pay particular attention to the steps, porches, decks, sidewalks, and driveways. Every inch of your home should be pristine.

Worn out. Replace anything worn. Take a look at faucets and other plumbing fixtures. Check your light fixtures; make sure your switches aren’t cracked or dirty. Examine rugs in entry ways, carpet on the steps, handles on your cabinets.

Yard for sale. Get your yard in shape. Trim bushes and weed your flower beds. Make sure your lawn is edged and mulched nicely. It’s been really dry lately in Chapel Hill, so if you have plants that look anemic, water and fertilize them – or replace them as needed. Remove any branches or leaves from your yard.

Up on the roof. Check your roof and gutters for damage, dirt, leaves, and debris. Give a good initial clean out, and then keep your eye on it after any rain or wind.

Got your number. Make sure your house number is easily visible from the street. You want every buyer to find you easily!

So go ahead. Sweat the small stuff. These little things may just make your home sell a whole lot faster!

Vivian Olkin sells homes in Chapel Hill, NC, and is crazy about helping individuals get their homes sold! Visit her website for her real estate wisdom and wit, including great tips on staging a home for sale.

Must You Hold an Open House to Sell Your Home? The Debate Continues

GuestWriter — Mon, 05 Jul 2010 13:33:08 +0000

By Abby Johnson

Some real estate agents today opt not to host an open house for every home they list. The reason is because more and more home buyers are finding their houses online. Time and technology have drastically shifted the way we do business and the real estate industry is no exception.

Review these pros and cons to help determine whether or not you prefer an open house to sell your home fast.

Get Buyers to Experience Your Home and Neighborhood

According to the National Association of Realtors’ (NAR) Profile of Home Buyers and Sellers, nine out of 10 buyers today look for houses online. Generally, people have less time to spend, and with the new availability of 360-degree virtual tours, it’s like seeing the house in person…almost.

A virtual tour is only virtual. Slideshows or a video can show a buyer your house, but they miss that personal touch. A virtual tour cannot reveal the essence of your home, the feel of your neighborhood, or the small details that often help make the sale. Online photos or video can help take a prospective buyer’s interest to the next level and bring them through your front door in person. A recent NAR survey suggests that a large percentage of buyers go back to Open Houses as a source of information for their home purchase.

Who Benefits from an Open House?

A survey conducted by the Real Estate Center at Texas A&M University hinted that the people who actually benefit from Open Houses are usually the agents because they offer a place for Realtors to build their clientele. Home buyers who come to Open Houses are more likely to ask the agent to show them additional houses in a similar price range, layout, or neighborhood.

Sellers find that an Open House can help seal the deal. Curious home buyers like to explore all available houses in a certain area and might not ask their agent to accompany them to every house. Reaching those buyers may help you sell your home faster.

Negatives to Consider

Sometimes agents might refrain from holding an Open House if they have a solid marketing strategy in place. It’s an added cost for the Realtor, eats into their weekends, and does not always result in a sale. Often Open-House people visiting the house are curious onlookers and not serious buyers.

Homeowners must also consider safety and security. There is always the possibility of opening your door to riff raff. You may not want to take that risk to sell your home.

Abby Johnson is the real estate blogger at Express Homebuyers. Serving the Washington, DC, Metro area, they can help you sell your home fast without a open house! Contact Express Homebuyers now or call them at 1-800-SELL-2-US (1-800-735-5287) to get on your way to a fresh start.

Photos Are The New Curb Appeal

Jill McIntire — Tue, 22 Jun 2010 13:22:55 +0000

For sale by owner sellers have a bad habit of using less than amazing photos in their online ads with the mindset of “they’ll get the idea.” It doesn’t work. Buyers are pickier than ever, and with high inventory levels in a buyers market, you’ve got to make sure your first impression leaves a lasting impression. There are two articles in the New York Times that talk about this issue. They both have great photo examples that you need to see! Click on the photos to see the full articles!

Additional Resources:

Real Estate Photographers:

Spokane, WA – Ron McIntire (509) 951-7653

Nationwide List – Photography For Real Estate Photographer Directory

Why Would Agents Turn Down Listings?

By Owner University — Mon, 07 Jun 2010 13:28:59 +0000

Experienced agents are turning down listings more and more. Do you know why? Would yours get turned down? What can you learn from their experience that will help you sell ‘for sale by owner’?

Realistic expectations

If you want to sell your home for more money than the market will support, you’ll have a tough time getting the phone to ring. Experienced agents won’t take on a listing that will be an advertising money pit knowing that comparable homes are priced less. (Although it’s not hard to find a newbie agent that doesn’t yet realize what it will cost them to try and help you.) The same goes for market time. If you want to sell your home faster than the average market time for your price range, it has to be more than nice. It has to be spectacular, AND the price has to be a “once in a lifetime” deal. Both of those conditions have to be met to beat the average market time. There are tons of beautiful homes out there that sit on the market for whatever the new “average” market time is in this economy. If you want a chance to beat the average, your home AND your price need to be able to wipe out the competition.

Mutual commitment

A seller needs to be just as committed to the marketing process as the agent. A good agent will put together a plan that will test the market and adjust accordingly. They will need your support and commitment to the plan, including periodic price reductions. When you are acting as your own agent, you must have a long term plan, and stick to it. This includes finding out how many buyers are shopping your price range and area of town and gradually dropping your price regularly if you don’t have enough showings in three weeks to support at least half the number of buyers you determine are out there.

Objective Valuation

What your home is worth and what your home will sell for are rarely the same number. Since real estate values have dropped nationwide, an awful lot of home owners have not made it through the five stages of grief in regards to the loss of value in their home. Many sellers get stuck in the denial and anger phases. They aren’t ready to drop their price and accept the loss of equity. These are the clients that agents run from. Some of them are uncooperative and frustrating to work with, others become verbally abusive. Experienced agents recognize the symptoms and refuse the listing. If you are acting as you own agent and you haven’t made it through the five stages of grief yet, you have a tough road ahead of you. Not many people can step back emotionally and look at the big picture objectively. Time is usually the best treatment for this condition. Sadly, time is something that most sellers don’t have.

If you have researched the top agents in your area, and interviewed a couple of them only to feel like they were interviewing you, don’t be surprised. It’s a different market out there. You still have a very good chance of selling it yourself, but only if you have done your homework and developed a plan that will allow your home to shine compared to the competition.

What has your experience been? Contribute to this article in the comments area.

How to Pass a Home Inspection

GuestWriter — Mon, 10 May 2010 13:36:21 +0000

By Jim Troth

Selling a home can be a long tough ordeal. Once you and your agent have located a potential buyer you want to avoid having the home inspector find many things that are concerning to the buyer. Below are some tips to help home sellers.

One of the purposes of the home inspection is to help remove the normal fears, doubts and concerns a buyer has. Anyone who has ever purchased a home understands that combination of emotions. It is a combination of excitement and nervousness. Home buyers, especially first time home buyers will always have concerns about a home purchase. They have a concern of unknown problems with the house.

To greatly reduce the concern about the unknown, home sellers should make sure that the home inspector has full access to all areas of the home. If the access or crawl space is not accessible because the openings are sealed shut or there is a motorcycle parked under the access they seller may wonder why you left it blocked. There is often a little wonder on the buyers part if the seller is being completely honest about everything. A situation where some areas can not be inspected increases these concerns in the mind of the buyers. So make sure stored items are out of the way of getting into the attic and the crawl space.

Lights that do not work are often the result of burned out light bulbs. Burned out light bulbs show lack of regular maintenance and lack of care for the home. This is a very easy fix. Walk around your home and replace all the bulbs that need replacing. If you have some bulbs that are dim or very low light output then consider installing brighter bulbs in those locations. A brightly lit home looks more attractive.

One area that gets checked during a home inspection is the bathroom. The outlets will be checked for the function of the GFCI (ground fault circuit interrupter). These are the outlets with the test and reset buttons on them. Test them to see that they operate and reset properly. If not then replace them. Home inspectors also check for moisture at the base of the toilets. Moisture there is an indication that the wax ring which seals the toilet to the drain pipe is no longer working. Because some inspectors will use moisture meter to check this area, be sure to avoid mopping the floor the day of the inspection. The water from your mopping the floor may not have dried yet and will give a reading of elevated moisture.

Good luck on selling your home.

Jim Troth is a full time home inspector in central Ohio and the Education Coordinator for InterNachi Ohio. He has grown his home inspection business during the downturn of real estate. He attributes the growth to excellent customer service and referrals.
His home inspection company is Habitation Investigation LLC. The website is: http://www.homeinspectionsinohio.comJim also provides some marketing help to fellow inspectors at: http://www.homeinspectionmarketing.com

How To Use A Group Legal Plan When Selling By Owner

Jill McIntire — Mon, 03 May 2010 13:50:01 +0000

Despite the fact that group legal plans have been around for years, many people have never heard of them. Perhaps it’s because they are often used as part of an employee benefit package (i.e. medical, dental, legal). Still as an individual, anyone can sign up for a legal plan separate from an employee benefit program. Budget around $20-$30 a month for membership fees.

Most legal plans divide their types of coverage into different areas. Often, coverage types can vary from state to state. To use a group legal plan when selling your home, you want to make sure it has two types of coverage:

The first type is telephone consultation. Use this service to ask questions about the process, or get clarification about filling out disclosure statements. When one of my clients got their home appraised, they discovered that their four bedroom home had a septic system designed for a three bedroom home. They called their group legal program, and their attorney was able to help them on two fronts: First, they learned what their rights were in relation to holding the builder accountable for his mistake. The attorney explained what the process, time frame and expense would be for them to potentially sue the builder. Next, the attorney helped them understand how to properly disclose the septic issue to a potential buyer for their home. Proper disclosure is important when selling your home. The confidential advice of an attorney can protect you from trouble later on.

The second type of coverage you want to have in a group legal plan, is document review. This allows you to fax in an offer and have the attorney review it before you sign it. Most legal plans will limit the documents they will review to a specific number of pages. If you have a contract that exceeds the page limit, as about paying an extra fee for additional pages.

Here’s a few tips for when using your legal plan: First, don’t wait for an offer to come in before you enroll. It will take between 24 hours and 10 days to process your membership, and any offer you receive will likely expire before your membership becomes active. After your membership is active, put together a list of questions and call the attorney. The legal office will usually get your information and assign you to an attorney that practices the type of law relating to your question. The attorney will usually call you back within 24 hours. (Keep in mind, attorneys don’t work weekends). If there is a time sensitive issue like an offer that has an expiration date, mention that when you call in.

Many people generate a list of questions for the attorney when filling out the disclosure information required by their state. While you have the attorney on the phone, ask if there is anything you can do to speed up the process of contacting their office when you receive an offer you want reviewed. Often, they will assign you a case number ( or keep open the case number you used for your ‘list of questions’ and give you a fax number with instructions so that you are ready to go when an offer comes in. Remember to include any deadlines or expiration dates on the cover sheet of anything you fax into the attorney’s office.

Affiliate Resources

Learn more about a legal services membership

What You Need To Know About Advertising on The MLS

By Owner University — Mon, 26 Apr 2010 13:28:50 +0000

It doesn’t take long after you hit the market as a for sale by owner home seller before agents start calling and mailing you. A few may have buyers interested in your home. Most of them are trying to list you full service, some are promoting MLS programs for people selling by owner.

Here’s what you need to know about advertising a property on the MLS when you are for sale by owner:

First, keep in mind the MLS is the the agents’ playground. You will have to play by their rules. For example you aren’t going have very much control over the layout or the formatting of how your listing is presented. It will have to conform to whatever the local multiple listing rules are.

Keep in mind the purpose of the multiple listing. It’s a database of listings by agents for agents. The general public can go to a brokerage website and look at listings for homes, but only a small portion of the information on the MLS is shown on the brokerage websites, and each individual brokerage decides what is shown on their website. It’s designed to encourage buyers to call an agent to get more information.

Another misconception about the multiple listing service is that anybody can look at it, and that’s just not true. The multiple listing service is a password protected, private data base. There are portions of it that are visible to the public on various brokerage websites, but unless you are a licensed agent, you cannot see all of the details. Information on how to contact the seller is available to the agents once they are logged in, but the general public won’t see it. Remember when you put your home in the MLS with a by owner program, you are advertising to agents that are working with buyers. Buyers may find your home online through an MLS affiliated website, but they will need to go through an agent to get all the details. Unless you are an agent with a membership to the local MLS, your listing will not show you as the “listing agent.” It will be linked to the local agent that is a representative of the by owner MLS program you are using.

Often I’ve spoken with home sellers that believe that REALTOR.com® is the MLS. Again, close, but not true. The MLS isn’t standardized across the country. Different cities or regions have independent MLS databases. Like the brokerage websites, information from the local MLS is shown through REALTOR.com’s® website, but again, it’s only part of the bigger picture. Brokerages and agents pay REALTOR.com® to have their listings shown. The more information and photos they want to show, the more they have to pay. Not all brokerages or agents spring for this, so if this is important to you, ask the company you are considering working with, what level of advertising you can expect to get on REALTOR.com® through their program.

Expect to pay more to sell your home if your primary advertising is through the MLS. When you advertise to agents, you will likely sell to a buyer that’s working with an agent, resulting in a commission. If you want to save money on a commission, advertise outside of the MLS as well. You’ll expand your marketing area and have a chance of selling in a straight by owner transaction and save even more.

While we are on the topic of commissions, we are often asked about offering less than the standard commission. A broker experimented with this for almost two years in Spokane, Washington. At the time, the market was good, averaging about 60-90 days for the median priced homes. Sellers that offered less than 3% to the buyer’s agent got no response. After 6 months of watching the results, we discouraged sellers from using this approach, after two years, due to the horrible response, the broker discontinued this option. Removing the incentive for agents to show your home, even during a ‘sellers market,’ results in no showings. No showings, no sale.

Lastly, beware of becoming a vending machine for a local agent. This isn’t much of an issue unless you are overpriced. Overpriced homes are frequently used by agents to compare against correctly priced homes. If a brokerage provides you a yard sign, and your home is overpriced, buyers will call the number on the sign and talk to an agent to hear about your home. The agent will get their contact information and can get them a list of other similar homes in case your’s doesn’t fit the bill. If your home is overpriced, it never sells because there are others on the list that are just as nice or nicer that are priced cheaper. When your are using an MLS program to be by owner on the MLS, the agent you work with isn’t spending any money on advertising (that’s your job), so if you are overpriced, you just end up being a vending machine, serving up buyers to the agency whose sign you are using. It’s not a bad thing to use an agency’s sign in your yard, as long as you are priced correctly.

What questions and experiences do you have about working with the MLS as a by owner seller? Add them to the comments area to keep this topic interactive.

REALTOR.com® is a licensed trademark of the National Association of REALTORS®

A Basic Clarification of the Short Sale

GuestWriter — Mon, 12 Apr 2010 13:31:09 +0000

By Jennifer Vollmer

I’ve had a few people ask me about short sales, what they are, and how they work. So I’m going to take a few moments here to clarify the short sale process. It’s really quite straightforward when you grasp the basics.

The general definition is simply this: A short sale is a sale of real property in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. The sale must be approved by the financial institution holding the note.

This definition is essentially correct. Additionally, the seller must also prove hardship; a job loss, divorce, death in the family, etc. Anything accurate that will prove to the lender the seller is incapable of meeting their financial obligation.

The last tidbit seems to be where some get confused. I’ve had conversations with homeowners who bought at the peak of the market and are now quite unhappy their home is not worth what it once was and they tell me “well, I’ll just do a short sale!”.

Yes, that is a good reason to be annoyed. However, there is a huge difference between a homeowner who has suffered a serious financial hardship and can no longer afford to make their payments, and a homeowner who is simply unhappy that their property has dropped in value. Trust me, the lenders look at hardship very closely, and they will scrutinize all of the financial information of the seller.

While this type of sale is a far better option for homeowners in hardship than a foreclosure, it does not come without its consequences. First of all, the homeowner nets nothing from the sale, the sale only allows one to walk away with the financial burden of the mortgage removed. Next, it will ding ones credit, not catastrophically like a foreclosure, but a ding nonetheless. How badly depends on the lender and how they choose to report it to the credit agencies; there is no predicting this. It is also possible that even though the lender agrees to the sale at a loss they can still hold the homeowner responsible for the amount deficient and issue a deficiency judgement. Lastly, if one holds a security clearance, one will risk having that clearance reviewed at a minimum.

A short sale is not pretty. I don’t advise it if there is any way the seller can continue to make their mortgage payments. Although, when that is not possible, a short sale can be the best option available.

There you have it, short sales clarified, from the sellers side of the table.

Jennifer Vollmer
Realtor and Certified Distressed Property Expert
Avery-Hess, Realtors
Woodbridge, Virginia

5 Mistakes Sellers Make When Showing Their Home

Jill McIntire — Mon, 05 Apr 2010 13:24:14 +0000

Like any industry, there are things that people do all the time that show up as a pattern to those that work in the industry. Avoid being labeled by industry pro’s as a rookie or a newbie by being aware of some of the common mistakes home sellers make when they show their own homes.

1. Talking Too Much

There’s a reason that agents ask the home sellers to leave when they show the home. It’s hard not to say too much and it’s easy to say the wrong thing and not realize it. Remember when you were getting your home ready to show and you made it neutral by depersonalizing everything? Keep it neutral when talking to buyers. Avoid talking about all of your family memories in the home. Buyers need to be able to imagine themselves living in the home and it makes it hard when they are listening to stories about how many people you squeezed in the dining room that one Thanksgiving when the turkey slid across the kitchen floor. Just stick to the facts.

Equally annoying is the “3 hour tour.” Buyers don’t necessarily want a tour guide, but they understand it’s awkward for them to to do any in-depth exploring in your home with you there. It’s natural to think “the more they know about this house, the more they will love it,” but actually, most buyers “know” within seconds of walking in a home if it is “the one” for them. Keep it short and sweet and let the buyer set the tone. If they keep asking questions, keep answering, but if they don’t have any thing more to ask or discuss with you, don’t try to hang on to them.

2. Telling people how much you spent on your remodel.

You know how every poker player has a “tell” of some sort? Alcoholics say they can quit anytime, and overpriced home sellers talk about how much they spent on remodeling and upgrades. It’s fine to mention specifics about upgrades and remodeling, in fact you should mention these things, but sharing dollar figures is something overpriced home sellers all have in common. It’s common etiquette that people don’t normally talk about how much they spent on things and when sellers start divulging this kind of personal information, buyers see it for what it is… justifying a high price.

3. Failing to have potential buyers sign in on a guest registry

Agents leave business cards on the counter so people know who was in the home. In a for sale by owner transaction, you need to track this information as well. The obvious use of this tool is for security, but when used correctly, it can create a safety net for your transaction and even save you thousands of dollars. If you are enrolled, log into the Member’s Section and see this article and video to learn even more.

4. Initiating discussion about price, motivation level or “bottom line”

Anyone that has had any training in negotiating has heard the phrase “first one to mention a price loses.” That absolutely applies here. It’s not a good idea to give a buyer or their agent information that will be used against you later. This includes why you are selling (i.e.: job transfer, divorce, can’t afford the payment etc.) Telling someone you will take even less than your advertised price is also giving away the farm. Keep this information to yourself. You may just end up getting an offer for exactly what you told someone you would accept…plus they want help with a few thousand dollars worth of closing costs and a bunch of expensive repairs; something you didn’t take into account when you mentioned your “bottom line” pricing.

5. Being picky. About showing times, pre-qualification letters.

As a seller, you are at the mercy of the buyer in a buyers’ market. You can’t afford to say things like “by appointment only,” or “pre-qualified buyers only” in your advertising. I know of an agent that was working with a cash buyer. They were looking at homes in a price range that doesn’t have many buyers, let alone buyers that could pay cash. The agent called ahead to several of the home sellers the day before to let them know his buyer wanted to see their homes and the approximate time they would be coming. Several of the sellers told the agent “it’s not a good time for us.” Can you believe it? Those picky sellers got passed over. In a buyers’ market, sellers can’t afford to be picky.

What mistakes have you seen home sellers make when showing their homes? Add your experiences in our comments section.

Additional Resources

Three Reasons To Use A Guest Registry (Enrolled Members Only)