Welcome to your new home!
It is often presumed that one can put a sign outside sell their own house without help to
avoid paying a Realtor commission.
Some sellers are tempted to try a For Sale by Owner (FSBO) transaction because their
neighborhood is in the midst of a sellers’ market. They believe their home will sell
easily. But unfortunately, more often than not, it’s the exact opposite.
Statistics show that selling your home with the assistance of a professional real estate agent will garner you a higher profit, enough to cover the commission as well as put more money in your pocket. According to the National Association of Realtor’s 2013 Profile of Home Buyers and Sellers, the average FSBO sales price was $174,900, while the average price for a home represented by an agent was $215,000, a difference of $40,100.
Why to Use a Pro
Choosing to sell with a professional Realtor rather than on your own makes sense for a variety of reasons:
- Access to market data about recent sales and other homes on the market that can be used to price your home appropriately is readily available and at the hands of a Realtor who is working with these numbers every day. Studies show that homes priced right when they’re first listed sell more quickly and for a higher price than those that remain on the market for a longer period.
- 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, making it more appealing.
- 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. When selling your home on your own, you – the seller – must be present. FSBO sale, the seller must be present.
- A Realtor will screen visitors, which provides a measure of safety that isn’t assured when you are selling as a FSBO. In addition and extremely important, assuring the buyers are legitimately qualified and pre-approved by a bank to be able to afford the home. A Realtor can help you avoid wasting time showing your home to unprepared and non-serious buyers.
- Realtors have professional marketing expertise, close contacts with other local 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 will procure for you an appropriate price for your home including clarifying any and all issues that may arise with regard to property inside the home and also assist in determining a closing date that meets your needs.
- Furthermore, a Realtor can help make certain your home is not in violation of any municipal codes and in addition, since Realtors must adhere to a strict Standard of Professional Ethics and Rules, will also advise you to be compliant with all legal disclosures and fair-housing laws and will counsel you to ensure the contract is amenable to all county and state regulations.
Most buyers today work with a buyers’ agent who represents them and looks out for their best interest. When you are going it alone, you’ll be negotiating with a professional and relying on your own skill to finalize a contract. This often results in not only selling your home for less money but you could leave yourself open to a variety of potential legal dilemmas.
FSBO transactions can be accomplished but statistics show that 90 percent of homeowners prefer to work with a professional rather than risk a disappointing and ineffective home selling experience.
As anyone who has gone through this process can attest to, the time-consuming and convoluted work begins after the offer comes in.
Contact one of our agents today!
Get Ready, List, Sell, Don’t Skip a Step!
Some sellers start at step 2, list their home and hope buyers will like what they see. How many times have you heard the saying “it’s all in the prep work.” Ever paint a piece of furniture and skip the first step, clean and prime the wood? The results, looks like your 5 year old painted it. Don’t skip a step…the “ready” step known as cleaning, de-cluttering and maybe a few repairs/improvements. Get Ready! First speak with your real estate agent and ask them what changes or improvements they feel should be made before you list. Remember, they not only know the market but they have a different perspective. When we live in a space long enough we tend not to notice things like the crack in the drywall or the piece of molding missing.
You need to detach and think of the house as a commodity for sale. Don’t skip a step! Again, the first step is to de-clutter. When you are finished, de-clutter some more!! You need to show the value of your home not your belongings.
Get Ready, List, Sell, Don’t skip a step:
- Clean out the storage spaces like the attic and garage. Donate, trash or sell (maybe you can make a few extra dollars).
- Remove all non-essential furniture. Show the square footage of your home Make it easy for potential buyers to move around your home.
- Bedrooms: Only have essential bedroom furniture in the room (i.e find a new home for the treadmill). Have a trunk or closed basket to put kid’s toys in. Have the carpets cleaned.
- Bathrooms: have grout cleaned or re-grouted, update plumbing and lighting fixtures if needed (this goes a long way).
- Kitchen: Organize and clean cabinets inside and out (yes buyers will open your cabinets). Clean all major appliances including range hood, deodorize dishwasher, garbage disposal, washer and dryer too.
- Closets: leave all closets ½ full. What tops a buyer’s wish list? More Storage! Give it to them.
- Living Room: Depersonalize, this goes for the whole house. Remove family photos, you want people to picture themselves in your home, not you.
- Curb Appeal, create some. Hey if you can’t them in the door none of your efforts will matter. Keep it simple, neat and welcoming. A few potted plants and freshly painted front door goes a long way. Of course any peeling or chipping paint should be addressed as well.
The biggest bang for your buck, PAINT!! Transforms and refreshes a room like nothing else.
Let the selling season begin!
The first official day of spring was March 20th! As you might know spring is the busiest home selling and buying time of the year.
Spring is a time of renewal. Here in the Northeast, snow starts melting, flowers and trees start blooming and homeowners get busy! Cleaning and de-cluttering to get their home on the market.
Here are some major advantages to listing your home in the spring.
- Warmer weather invites people to venture out. Sunday drive = seeing for sale signs.
- Daylight Savings Time: The more daylight you have the more houses that can been seen in a day.
- Curb appeal is at its best. You never get a second chance to make a first impression (especially on a Sunday drive by). Houses photograph better, and therefore look better online. If they see the home first online and it doesn’t look good they most likely will not schedule an appointment to see it in person.
- Pricing: Prices are higher in the spring when there are more houses on the market. It seems counterintuitive but the price is driven by season and the school year.
- There are better valuations. This goes hand in hand with the price. Appraisers are looking at what recently sold first. Therefore the more houses that sell in the spring (for that larger price) the better the valuation is.
- And if you time it right, a summer closing so you can move into your new home before the school year starts.
Ever wonder who might buy your home, who your market is? Millennials (ages 25-35 years old) make up 68% and Generation X (ages 35-49) 29% of first time homebuyers. These groups also make up 59% of all home buyers in general.
For those who sold their home this year, it’s important to understand how selling your home may impact your tax returns, now that tax season is upon us. The following information explains how capital gains work for those who have recently sold a home. For those of you that are unaware of what capital gains are, its simply profit made from a capital asset such as stock, bond, or in our case, real estate.
If you sell your primary residence, you may be able to exclude up to $250,000 of gain – $500,000 for married couples – from your federal tax return. To claim the exclusion, the IRS says your home must have been owned by you and used as your main home for a period of at least two out of the five years prior to its sale.
There are a few catches: You also must not have excluded gain on another home sold during the two years before the current sale. However, special rules apply for members of the armed, uniformed and foreign services and their families in calculating the 5-year period.
If you do not meet the ownership and use tests, you may use a reduced maximum exclusion amount. But only if you sold your home due to health, a change in place of employment, or unforeseen circumstances.
An extra perk? If you can exclude all the gain from the sale of your home, you do not report it on your federal tax return. If you cannot exclude all the gain, or you choose not to, you must use Schedule D of Form 1040, Capital Gains or Losses, to report the total gain and claim the exclusion you qualify for.
How about for those with more than one home?
You can exclude the gain only from the sale of your main residence. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is usually the one you live in most often.
The Green Team home base is in Warwick, but our client’s properties expand all over New York and New Jersey. I have seen a large raise in homes for sale in Warwick, Florida, and most other places in Orange County which is why I am passing this information on to you reader! If you have any questions on capital gains, don’t hesitate to call or stop by.