If you’re a fan of “reality TV” shows like Love it or List it, Flip or Flop and Flipping Out, we understand. There’s a sense of drama, entertainment and sometimes a financial windfall. It can be very tempting to jump into the real estate market with a false sense of confidence after watching these shows. Before doing so, ask yourself…
Is this in your best interest?
This study by Collateral Analytics is clear that FSBO’s may, in fact lose out by NOT listing with an agent. Typically, owners who choose to handle selling their own properties want to avoid paying the Agent’s commission.
Doing so, they take on the responsibilities of:
Right-Pricing. This requires understanding square footage cost, current market conditions and a whole lot more! Finding comparable properties (aka. “comps”) in your area that truly match search criteria requires a wealth of knowledge. Differences in material grades, location within a neighborhood, and additions like in-ground pools or finished basements can vastly affect values. These nuggets of wisdom are gained when the Seller works with an experienced and professional real estate team. Just knowing the right questions to ask (and HOW to ask them) can make a world of difference.
Research. In addition to “right-pricing” based on property values, Sellers will need to understand the current market. Although Rochester, New York is known for a reasonably stable market, fluctuations in either direction can have impact on how long a home stays on the market. This may lead to other problems like…
Time. Simply having a home on the market beyond 30 days can have an impact of the perceived value. Buyers and their agents may strategically scrutinize how long a home is listed. The longer the listing, the more likely the Buyer is to try to negotiate your home for a lesser price.
Appraisals. If a buyer needs to get a mortgage, the house has to appraise for the price that the buyer is willing to pay. In addition, that appraisal must match what the lender is prepared to offer in a mortgage. If the appraisal is less than that amount, then what do you do? A real estate professional can help you through that, and help you avoid the issue all together!
State rules and disclosures. Federal law requires that Sellers disclose to Buyers any home built before 1978 can pose a lead paint threat. This must be communicated with a provided brochure. That’s fairly straight forward and simple, now that you know. The question is, “What ELSE don’t you know?”
Collecting Earnest money. This is basically a promise from the Buyer that they’re serious. How much is enough? How is it accounted for? Does it have to be returned? If so, under what circumstances? This can become very complicated, very quickly.
Working with an attorney. No matter what you do, the transfer of real property in New York State requires an attorney to be involved. Not all attorneys perform real estate transactions and among those who do, not all real estate transactions are equal. Who will you call?
Tax Impacts. Once sold, the transfer of monies may have some impact on your tax status. There are methods to defer some taxes while others must be attended to quickly. The myriad details will require an accountant who works in this area and is an expert at safeguarding both your funds now and in the near future.
As Real Estate Professionals
We understand the lure of “saving money” on a high value sale. However, on average the amount of time, stress and resources needed to properly sell a residential home vastly outweigh the commission “saved”. The Sharon Quataert Team has serviced homeowners in our region for more than 30 years. We’re ready today to make your selling experience a positive one and look forward to serving you. Call us today for a consultation on how to make the most of your home sale.