BMA's Real Estate Management Articles, Vol. I by Ismael D. Tabije - HTML preview

In a Buyer's Market, Don't Throw Your Money Out the Window with FSBO or Limited Service Brokerage

Elaine VonCAnnon

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Thomas M. Stevens, president of the National Association of REALTORS® (NAR), recently said there is, “good news for buyers who have been on the sidelines; now there is a window of opportunity in the market.” “In most of the country, buyers can take their time to make an informed decision. We advise buyers to consult a professional in negotiating the buying process, and to cautiously review mortgage options-especially on non-traditional loan products,” he continued. As the real estate market settles more solidly into a buyer's market sellers must consider the best route to a successful real estate transaction.

Debunk the myth of FSBO and Limited Service Brokerage.

For Sale By Owner and Limited Service Brokerage transactions are risky and often confusing. In the current real estate market competition for buyers' attention gets more heated every day. It is essential to have experience and knowledge about selling your home. Selling and buying a home involves important steps, timelines, appraisals, inspections and required paperwork and approvals. If something went wrong with your car would you do a major engine overhaul or take it to an expert? Why risk your biggest investment, your home? Real estate agents have access to different information regarding lenders and know trade secrets that can save you time and money.

Limited Service Brokerage is another questionable choice in the real estate market today. Limited service agents generally charge a one-time fee for listings. However, all this often pays for is a sign in the yard and a place on the MLS system. Then you are responsible for inspections, showings, paperworks, and contacting the lawyer and titling company. If you are like most sellers who have a job, a family and other parts of life to attend to. Do you want to risk missing qualified buyers? A limited service broker is less affordable. Actually, without a trained real estate professional who knows the business, you'll lose time and money. Now that the market has cooled, why risk trying to sell your home alone without help?

Always consult a professional. On REALTOR.org the article NAR Asks Home Owners: If You Sell It, Will Buyers Come? reports “home owners who try to sell their home without professional help must overcome a number of hurdles.” “The obstacles include making the appropriate disclosures, preparing the home for sale, pricing the home appropriately for a dynamic market and, most importantly, attracting qualified, motivated buyers,” it continues. The NAR also reports that sellers who work with a qualified professional real estate agent can expect to make approximately 16 percent more than those selling For Sale By Owner. The NAR estimates that the average home sale is a process that requires over 20 steps. Why not find an expert who completes this process hundreds of times instead of going it alone? There are specific factors that lead to a successful real estate sale. First and foremost, use the Internet! In 2005, according to the NAR, 77 percent of all homebuyers use the Internet to begin their search for the perfect home. To see the online presence of your potential listing agent, type their name into the search engine.

Don't Believe the Hype

In the field of real estate there is a lot of hype, just like any other sales-based profession. There are a few things everyone should know about the changing market, especially when attempting to sell a property. First, agents and companies that place large real estate ads and hold open houses are not doing it to benefit you. Although many say this helps the seller all it really does is attract more buyers and sellers to the agency. Large ads don't often attract a qualified buyer and open houses just bring the agent more work. It can also be dangerous. It gives people you don't know the ability to see your home and plan burglary jobs. This is why real estate is considered a high-risk career; you are often alone and inviting perfect strangers into your home.

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About the Author :
Elaine VonCannon is an award winning REALTOR with RE/Max Capital in Williamsburg, Virginia. She specializes in retirement and relocation in the Williamsburg, South Eastern Virginia area and in Virginia Estate properties. To learn more visit http://www.voncannonrealestate.com or http://www. estatesinvirginia.com. Email Elaine at vonmor1@cox.net
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