| For Sale by owner (FSBO)
| "Buyer's Market" OR "Seller's Market"
| Somerset County Real Estate Market
| Best Time to Sell
| Sales Process
I recently sold my first home in 38 years. What a pain.
The last time we sold a house was 38 years ago in 1978. We hired a realtor, hid the dirty laundry and dishes and put it on the market.
In the mean time we built a new $350,000 house in Somerset Co. NJ (at the time the county with the highest median income in the country) which is worth about $750,000 now.
I talked to multiple realtors and got all kinds of conflicting advice.
I started with a couple of people I knew at my church. I wanted to get advice on what repairs I needed (e.g. replace 25 year old roof shingles), but all they could see was my clutter and wouldn't recommend anything but decluttering.
I decided this could be a contentious process and decided it was best not to use someone in my circle of friends.
I finally figured out that realtors didn't have my best interest in mind.
They wanted to get the house on the market and sold quickly to collect their commission and move on.
My late wife and I had spent a lot of time designing a custom home and developing the landscaping over 30 years. I didn't want to let it go for a song. That being said it can be a problem to get too emotional about the process.
A quick sale is probably OK for most people who have to move in a short time for a new job opportunity, but I was retired and had no time constraints, other than getting out before next fall so I wouldn't have to rake the leaves in my yard again with a dozen big oak and maple trees. :-)
I know how to take pictures and build a web page to advertise my house, so I was thinking I would sell it myself and save the $40,000 real estate commission.
I hired a stager.
I should have done that first. What she told me (of course she's promoting her services), was that if your house is staged before you bring in a realtor, they
will get a better impression of the house so they will be more likely to promote it and set a higher listing price.
I've got to declutter, declutter, declutter (including the garage and basement) repaint, inside and out, replace old light fixtures in the bathrooms. Remove all the shelves that are not built in, remove half the books on the other bookshelves. Remove the TV, extra tables and chairs. Replace the formica kitchen counters with granite.
See Picture tips and my pictures vs a professional.
For Sale by owner (FSBO):
About 10% of home sales are FSBO.
Studies have shown that the typical house sold by the homeowner sells for $184,000 while the typical house sold by an agent sells for $230,000. This doesn't mean that an agent can get $46,000 more for your home, studies have shown that people are more likely to FSBO in markets with lower price points.
At For sale by owner: More homeowners ditching real estate brokers - Money.CNN.com Oct. 11, 2013 they say,
"Real estate agents are willing to take a lower price to make a quick sale, but that would cost me a lot of money,"
A study by Stanford University economists Douglas Bernheim and Jonathan Meer supports that concern. They found that homes on campus using real estate brokers sold for 5.9% to 7.7% less than homes sold without brokers.
A study, "The Relative Performance of Real Estate Marketing Platforms:
MLS versus FSBO" at the U. Wisconsin Madison, found "There was no gain in price in selling a home through MLS vs. by owner."
- See more at: Study Offers Provocative Comparison of Selling a Home
For Sale By Owner Services Inc., based in Overland Park, Kansas. It charges $695 for a package that includes a three-hour seminar, ads in its FSBO magazine and Web site, a real-estate lawyer's services, necessary documents, yard signs, and other aids.
According to my Realestate Agent
Popular FSBO web sites:
Most charge a fee around $300.
Real Estate and Homes for Sale - Search, Buy, Sell | Owners.com
Hometown Residential Realty Flat fee plus low commissions pdf
Costs of FSBO:
Flat fee MLS service : $400-800
Open house : $360 (3 OH's at 4 hours each at what your time is worth $30/hr)
Your time showing the house: $300 (20 visitors at 1/2 hour each at $30/hr)
Newspaper advertising of open house: $200-$300 each time
Contract negotiations and follow up: $450 (15 hours at $30/hr)
Time spent waiting for buyers to show who don't: $150
Total: $1860 to $2360 (and there's more I left out)
Source: Home Selling: What is the best FSBO site to use? - Trulia Voices
Advantages of using an Agent:
Source: Why For-Sale-by-Owner Sales Fail - Sell - realtor.com
- A Realtor has access to market data about recent sales and other homes on the market that can be used to price your home appropriately. Studies show that homes priced right when they're first listed sell more quickly and for a higher price than those that linger on the market.
- A Realtor can show your home when you aren't available, can respond to inquiries from potential buyers and their agents, and can get valuable feedback from visitors - all things that save you time.
- A Realtor can look at your home objectively and suggest ways to improve its appearance - by staging and minor repairs - so it appeals to more buyers.
- Buyers typically prefer to look at a home without the seller present so they can feel more comfortable exploring the rooms and visualizing themselves in the property. At an FSBO sale, the seller must be present.
- A Realtor can screen visitors to your home, which provides a measure of safety that FSBO sellers don't have. In addition, by checking to see if the buyers are legitimate and can afford to purchase your home, a Realtor can help you avoid wasting time showing your home to unrealistic buyers.
- Realtors have professional marketing expertise, contacts with other Realtors who work with buyers, and the support of a brokerage that can market your home more widely than you can as an individual.
- A Realtor can help you negotiate a contract that not only garners you an appropriate price for your home, but that meets your needs for a settlement date and perhaps includes a period when you rent back your home from your buyer. In addition, a Realtor can make sure your contract is in compliance with all local regulations.
For sale by owner - Wikipedia
Real Estate Homes For Sale By Owner | FSBO.com
Real Estate Listings: Buy or Sell a House | ForSaleByOwner
8 Easy Home Selling Tips | ForSalebyOwner.com
Home Seller's Checklist -
Mistakes to Avoid When Selling Your Own Home - WSJ
5 Reasons You Shouldn't For Sale by Owner | Keeping Current Matters
How to List it yourself:
Broker Feeds FAQ - Zillow
Trulia Feed Development Guidelines
Zillow Listings Feed Guide - Microsoft Word
They need a listings .xml file.
How do Buyers Find Homes 2017
10 Ways To Turn Off A Homebuyer | Bankrate.com
Home Buyers: Search Online For A Home, Close With An Agent (EconomistsOutlook.blogs.realtor.org) - 2016
10 Things to Do Before You List Your House | HowStuffWorks
Typical signs are 24x18"
Real Estate Signs, Open House Signs, For Sale Signs by Dee Sign®
Smaller replacement projects, particularly those that enhance curb appeal, remain the most cost effective way for sellers to improve value.
Cost vs. Value 2015 | National | Remodeling
Should you replace an old roof?
At Should You Repair Your Roof or Sell As-Is? | Redfin they quote return on investment at Remodeling Magazine , which says you'll get 57% return.
They go on to say,
"There is one reason you might choose to spend money on your roof: to sell your home faster. Well-maintained homes have the potential to sell faster because they show better when people tour them in-person, and that's one less concern for the buyer to take into account. "
"Similarly, selling as-is and pricing your home lower to compensate could work in your favor to attract multiple buyers in a bidding war."
Does a new roof add any value to a home? | Zillow says,
"You will recoup 71.6% of the cost."
An old roof could affect the ability of the buyer to get a mortgage depending on the market and how far they are stretching to qualify.
Realtors responding to the question at Homes.com generally say yes.
Another issue is cost. I got estimates from $11,000 - $27,000 to replace my roof, both with lifetime guarantees. A buyer will usually
Top 10 Largest Real Estate Brokerage Firms in The US - NeedToSellMyHouseFast.com
KellerWilliams, Weichert, Century 21, Re/Max
Top in Warren and Bridgewater NJ GSMLS & CJMLS (number of listings for $650-$800K)
|Caldwell Banker ||11
|Berkshire Hathaway (BHHS) ||11
|Keller Williams ||10
|Van Syckel ||3
|Century 21 ||1
|Golden key ||1
Sink or Swim: How to Choose the Right Real Estate Team
"Buyer's Market" OR "Seller's Market"
Features of a Seller's Market:
Fewer properties on the market than in past periods
3 months or less of inventory on the market (MSI (Months to sell Inventory) ≤ 3))
Listed properties spending less time on the market
Features of a Buyer's Market:
More properties on the market than in past periods
6 months or more of inventory on the market MSI ≥ 6)
Listed properties spending more time on the market
Somerset County Real Estate Market
| ||Under |
|Inventory ||Months |
|Aug 17 ||427
|Jul 17 ||387
|Jun 17 ||480
|May 17 ||472
|Apr 17 ||412
|Mar 17 ||417
|Feb 17 ||351
|Jan 17 ||232
|Dec 16 ||247
|Nov 16 ||305
|Oct 16 ||344
|Sep 16 ||346
|Aug 16 ||367
|Jul 16 ||406
|Jun 16 ||466
|May 16 ||449
|Apr 16 ||423
Somerset Countys Real Estate Market Conditions - as of September of 2017 | Joe Peters
The chart below shows that for the county Dec and Jan under contract (Pended) is about 58% of March and April, so it's not dead as some realtors would have you believe. May and June are still
Somerset County Market
per Somerset County's Real Estate Market Conditions - as of September of 2017 | Joe Peters
By price - Somerset Co, NJ - August 2017
|Type ||New Listings ||Under Contract ||Active |
|Over 55 Communities ||9
|$1M and up ||43
Somerset Co Municipalities Aug. 2017
|Municipality ||Active |
|Under Contract |
in Last Month
|Bedminster Twp ||69
|Bernards Twp ||165
|Bound Brook ||26
|Branchburg Twp ||74
|Bridgewater Twp ||156
|Far Hills Boro ||11
|Franklin Twp ||242
|Green Brook ||41
|Manville Boro ||36
|Millstone Boro ||3
|Montgomery Twp ||153
|North Plainfield ||78
|Peapack Gladstone ||29
|Raritan Boro ||15
|Rocky Hill Boro ||3
|Somerville Boro ||36
|South Bound Brook ||14
|Warren Twp ||141
|Watchung Boro ||58
08836 Home Prices & Home Values | Zillow
Note: Because of the small volume these stats are not the best indicator. There may have been only 1 house sold in some of these months.
Source: Real Estate Market Trends for Bridgewater, NJ 08807 - Trulia
When is the best time to sell:
In a 2016 study, researchers at Zillow found that homes listed between May 1 through May 15 sold, on average, around 18.5 days faster than homes that weren’t listed during that timeframe. Homes that sold in the first half of May were also purchased for about 1 percent more than the average listing, which translates to a premium of about $1,700.
Houses in popular cities like Seattle, Portland, and Denver sold for 1.5 to 2.5 percent more in early May.
2017 Home Light survey
Realtor survey nationwide says Mar, Apr, May is the best time to sell.
San Francisco - Feb Mar Sept
Walnut Creek CA - Jan
Sacramento - Nov.
New York - Aug
Toms River NJ -July
Norwalk CT - Feb
Best time for Bridgewater NJ changes from year to year.
The Sales Process
How the price negotiation typically goes.
There are all kinds of things that determine how the selling price relates to the listing price.
6% is an average for an offer with the sale price ending up 3-5% below list.
If the house has been on the market for some time an offer of 8-10% below list may be ok.
See Home Pricing for more.
Try to get a buyer that is pre-approved rather than just pre-qualified.
Pre-Qualified just means someone has asked for your income over the phone to see if it will cover loan payments.
Pre-Approved means the buyer has completed a mortgage application (usually with a fee) and their financial background and current credit rating have been checked to get approved for a given mortgage amount.
The bank will still have to have an appraisal to finalize the loan.
The first offer is the best offer:
This a standard mantra from real estate agents.
In the article below they say it may well be true and list some cases where that may be true, but they say they have also seen many cases where the buyer held out and got a better price.
Source: Your First Offer Is Your Best Offer - Fact Or Fiction? - Getting Real
DOM - Days on Market
FOR-90 - Forced -Air Furnace with 90% efficiency rating
HVAC - Heating Ventilation and Air Conditioning
MLS - Multiple Listing Service
MSI - Months to Sell Inventory
TBT - Tile Bath with Tub
Multiple Listing Service Abbreviations
Selling your House: Nolo's Essential Guide 2nd edition 2017
5 Myths and 5 Truths About Selling Your Home - Zillow Porchlight
6 Things Your Home Inspector Is Looking For
Mistakes to Avoid When Selling Your Own Home - WSJ
InspectAPedia.com - Building & Indoor Environment Problem Diagnosis & Repair
Trulia's Home Buying Checklist - Trulia's Blog - Real Estate 101
Most Popular Real Estate Websites | May 2017
1. Zillow, 2. Trulia, 3. Realtor.com, 4. Yahoo Homes, 5.Redfin
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last updated 19 Sep 2017