Tips On Selling Your Own Home
05-28-08
Selling your own home is never easy, and the difficulties ran more than just missing an agent. There are those memories and sense of belongings to get over, for one. You want to make sure the house you've lived in moves to the best buyer possible - and you want to make sure they're willing to pay what it's worth. Do you really think you can do this? A lot of people managed to sell their own home quickly. Here are some tips that might help:
Make sure you have every legal issues covered before you even think about handing your house over. Does your state law require you to give property disclosures to potential buyers? It's always a good idea to invest in a good attorney to help you.
An attorney also come in handy for helping you make the contract form. Selling your own home requires a contract that would both protect you and the buyer - think about the buyer deposit and the local estate laws.
A useful but normally disregarded tip in selling your own home is make sure you pick out the best picture to put in the advertisements. Like humans, not all houses are "photogenic", so pick out the best angle that still represents what your house has to offer.
Something the agents have and you don't is experience, especially in observing buyers. The large amount of potential buyers coming to your house should not convince you that everyone can finance for a house. If you're selling a house on your own, more buyers will come in hope of a more flexible negotiation - check them all. Ask if they're able to buy your house immediately, or do they need to sell their own house first.
Cleaning and preparing your house for home showings is only a part of your effort. Some potential buyers love to do drive-bys, and rely on that first impression. Make sure your lawn and the front part of your house is well maintained.
If your curb appeal is low, clients are reluctant to see what's inside. These tips on selling your own home came from people who managed to sell their house successfully. There's a lot to consider before you take every next step, so take your time. And remember, it's useless to do the selling on your own if the revenue taken from not hiring an agent is spent heavily on fixing your own mistakes!
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Monday, January 12, 2009
Selling Your Own Home
Selling Your Own Home
05-28-08
Home sweet home. We always feel comfortable in our own home. Like they say, "there is nothing place comfortable like home". Yes, that is true. But what if you want to sell your own home? Selling your own home can be difficult at one time, because you cannot see your own home as a property to sell. You are used to the way of your home looks and functions and there be no problems with that. But homebuyers see things differently, they is if the house is still proper to live in, is the house is clean and tidy, is the house has spacious area for the whole family, is it a secure neighborhood, etc.
Selling your own home can be a fun or maybe exhausting activity because you have to prepare your home and fix the flaws or defect of your home. You can choose by yourself whether you want to sell your own home by yourself or you may want to use a real estate agent to sell your home. Every choice has its own advantages and disadvantages. Because it is your home, you can decide it by yourself. One thing you should also remember that every choice that you make should gain more benefits to you.
If you do not want to bother by this "selling home" matter, then you can use a real estate agent to sell your home right away with reasonable price that you or the agent suggest. The real estate agent will take care all of the documents and arrange the meeting between you and the buyer. The agent also prepares the open house if you don not have much time to do it. At the end of the closing time, this agent will cut your home price up to 6% for his service to help you to sell your own home. Even tough you will loose some dollars for the agent, at least your home is sold with the price that you want and you do not have to think about the documents and the permits either. Everything is prepared and finished by this agent.
But what if you want to sell your own home by yourself? It still possible, as a matter of fact, you will save more dollars because you do not have to spend more money on real estate agents. However, selling your own home by yourself need extra works and extra time and extra energies since you will be doing all things from a to z in selling your own home. The fun fact is that you can stress up your home's best points to the buyers and negotiating the price directly with them without any third party such as the real estate agent. You can find information about selling your own home by yourself on the web or newspaper about the price of houses.
You have to be smart in selling your own home. Do not sell it at low price so that it will cost you more money, or at high price so that the buyer will be scared away and leave.
05-28-08
Home sweet home. We always feel comfortable in our own home. Like they say, "there is nothing place comfortable like home". Yes, that is true. But what if you want to sell your own home? Selling your own home can be difficult at one time, because you cannot see your own home as a property to sell. You are used to the way of your home looks and functions and there be no problems with that. But homebuyers see things differently, they is if the house is still proper to live in, is the house is clean and tidy, is the house has spacious area for the whole family, is it a secure neighborhood, etc.
Selling your own home can be a fun or maybe exhausting activity because you have to prepare your home and fix the flaws or defect of your home. You can choose by yourself whether you want to sell your own home by yourself or you may want to use a real estate agent to sell your home. Every choice has its own advantages and disadvantages. Because it is your home, you can decide it by yourself. One thing you should also remember that every choice that you make should gain more benefits to you.
If you do not want to bother by this "selling home" matter, then you can use a real estate agent to sell your home right away with reasonable price that you or the agent suggest. The real estate agent will take care all of the documents and arrange the meeting between you and the buyer. The agent also prepares the open house if you don not have much time to do it. At the end of the closing time, this agent will cut your home price up to 6% for his service to help you to sell your own home. Even tough you will loose some dollars for the agent, at least your home is sold with the price that you want and you do not have to think about the documents and the permits either. Everything is prepared and finished by this agent.
But what if you want to sell your own home by yourself? It still possible, as a matter of fact, you will save more dollars because you do not have to spend more money on real estate agents. However, selling your own home by yourself need extra works and extra time and extra energies since you will be doing all things from a to z in selling your own home. The fun fact is that you can stress up your home's best points to the buyers and negotiating the price directly with them without any third party such as the real estate agent. You can find information about selling your own home by yourself on the web or newspaper about the price of houses.
You have to be smart in selling your own home. Do not sell it at low price so that it will cost you more money, or at high price so that the buyer will be scared away and leave.
Selling Your Home Yourself
Selling Your Home Yourself
05-28-08
Nowadays, a lot of people are doing business in the real estate area. One of the businesses is buying and selling house. The Real estate agent who will take charge of his or her services for about 2-6% home often takes this buying and selling home activity. People usually sell the home with the help of real estate agent because they want their home to be sold fast. Maybe you will think that you want to sell your home by yourself in order to save more money into your account because the money will not be cut down to the third party such as real estate agent.
Selling your home by yourself is not a difficult task to do if you know how to sell your house by yourself with a good strategy and know the steps to sell your house immediately. But, selling your home yourself demand lots of your time. Why is that? Because you have to do more survey on price and more work to "clean up" your house before the selling process.
Selling your home yourself is as easy as 1,2,3 and you will see that you can also sell your home yourself.
Before you start to sell, you have to set your mind that you can sell your home by yourself. If you already set your mind, the next steps can be lot more easily. First thing that you have to do is "clean up" your house and make your house looks spacious. Every buyer always searches for a clean, neat, tidy, and spacious home. You have to make your home look great and attractive. You can start by identify your home defects and make some extra work to do to your home such as cut the grass, remove all clutter, scoring your home from top to bottom, makes some little improvement even if that seem unimportant to you such as planting flowers, fixing broken tiles, trimming tree, and make sure that your home smells good, and other repairments and improvements here and there.
After you "prepare" your home, you should also set a reasonable price in selling your home. You do not want to set the price too little or over estimate that will reduce your potential buyers. You can find information about the price of the home, that similar to your home, in newspapers, advertisements, or you could ask some professionals advices to price your home.
The last step to do is to market your home. Selling your home by yourself can be an interesting work to do but can also make you frustrated if your home is not sold for the time that you have predicted. If your marketing strategy is good, you will have your home sold only by weeks. You can start by making a good advertisement on your house appearance and add your ads into a newspaper or magazine that has a particular field in buying or selling house. You can also make an open house. Open house is an attractive ways to attract buyers. And do not forget to make flyers of your house so that the buyers can bring your home brochure with them.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
05-28-08
Nowadays, a lot of people are doing business in the real estate area. One of the businesses is buying and selling house. The Real estate agent who will take charge of his or her services for about 2-6% home often takes this buying and selling home activity. People usually sell the home with the help of real estate agent because they want their home to be sold fast. Maybe you will think that you want to sell your home by yourself in order to save more money into your account because the money will not be cut down to the third party such as real estate agent.
Selling your home by yourself is not a difficult task to do if you know how to sell your house by yourself with a good strategy and know the steps to sell your house immediately. But, selling your home yourself demand lots of your time. Why is that? Because you have to do more survey on price and more work to "clean up" your house before the selling process.
Selling your home yourself is as easy as 1,2,3 and you will see that you can also sell your home yourself.
Before you start to sell, you have to set your mind that you can sell your home by yourself. If you already set your mind, the next steps can be lot more easily. First thing that you have to do is "clean up" your house and make your house looks spacious. Every buyer always searches for a clean, neat, tidy, and spacious home. You have to make your home look great and attractive. You can start by identify your home defects and make some extra work to do to your home such as cut the grass, remove all clutter, scoring your home from top to bottom, makes some little improvement even if that seem unimportant to you such as planting flowers, fixing broken tiles, trimming tree, and make sure that your home smells good, and other repairments and improvements here and there.
After you "prepare" your home, you should also set a reasonable price in selling your home. You do not want to set the price too little or over estimate that will reduce your potential buyers. You can find information about the price of the home, that similar to your home, in newspapers, advertisements, or you could ask some professionals advices to price your home.
The last step to do is to market your home. Selling your home by yourself can be an interesting work to do but can also make you frustrated if your home is not sold for the time that you have predicted. If your marketing strategy is good, you will have your home sold only by weeks. You can start by making a good advertisement on your house appearance and add your ads into a newspaper or magazine that has a particular field in buying or selling house. You can also make an open house. Open house is an attractive ways to attract buyers. And do not forget to make flyers of your house so that the buyers can bring your home brochure with them.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Selling A Home Privately
Selling A Home Privately
05-28-08
When you chose to sell your home privately (without the help of a real estate agent), most likely it's because you wanted to save some money. A research shows that selling a home privately can save as much as $9000 during the home selling process. Don't let this fact sway you, though. A qualified real estate agent costs a lot because they have experience in the market and is more likely to give you a more secure price of your home. An agent also wins in network; being able to reach people who's looking for a house, or can help selling one.
Selling a home privately will also affect the marketing process. If you sell your home without the help of an agent, it's not likely that you'll have access to Multiple Listing Services - a database full of house listings given out to homebuyers. You might need to get the buyers in some other way, like holding an open house or putting an advertisement on local newspaper.
Furthermore, when a buyer sees that you are selling your home privately, they will offer a lower price, because they knew you're already saving money from not hiring an agent.
On the other hand, it is understandable that some people can not trust other people to sell their home. Selling your home privately means being in total control of the transaction. You know that you will always be available for questions or home showings. Whenever you made a mistake, it's yours and only yours to blame (trust me, a mistake that costs you nothing would still feel better than an expensive one).
When you're sure that selling your home privately is the way to go, there are some extra preparations you need to do. Take extra measures in preparing your house. Remember that you'll be competing with professional agents and their clients' houses - make sure you have a chance to stand out! Find websites that provides a "selling by owner" kit. Get as maximum exposure as possible.
You also need to get educated in legal requirements and contract making. This will take some time, so get help from an attorney and start researching way behind your selling date. Selling a home privately is a tricky business. Some say that you're able to sell your own house if you have three free hours every day of the week. With a little bit of work, you'll manage to put that much-needed money to better use.
05-28-08
When you chose to sell your home privately (without the help of a real estate agent), most likely it's because you wanted to save some money. A research shows that selling a home privately can save as much as $9000 during the home selling process. Don't let this fact sway you, though. A qualified real estate agent costs a lot because they have experience in the market and is more likely to give you a more secure price of your home. An agent also wins in network; being able to reach people who's looking for a house, or can help selling one.
Selling a home privately will also affect the marketing process. If you sell your home without the help of an agent, it's not likely that you'll have access to Multiple Listing Services - a database full of house listings given out to homebuyers. You might need to get the buyers in some other way, like holding an open house or putting an advertisement on local newspaper.
Furthermore, when a buyer sees that you are selling your home privately, they will offer a lower price, because they knew you're already saving money from not hiring an agent.
On the other hand, it is understandable that some people can not trust other people to sell their home. Selling your home privately means being in total control of the transaction. You know that you will always be available for questions or home showings. Whenever you made a mistake, it's yours and only yours to blame (trust me, a mistake that costs you nothing would still feel better than an expensive one).
When you're sure that selling your home privately is the way to go, there are some extra preparations you need to do. Take extra measures in preparing your house. Remember that you'll be competing with professional agents and their clients' houses - make sure you have a chance to stand out! Find websites that provides a "selling by owner" kit. Get as maximum exposure as possible.
You also need to get educated in legal requirements and contract making. This will take some time, so get help from an attorney and start researching way behind your selling date. Selling a home privately is a tricky business. Some say that you're able to sell your own house if you have three free hours every day of the week. With a little bit of work, you'll manage to put that much-needed money to better use.
Is It A Good Idea To Sell Your Home Yourself?
Is It A Good Idea To Sell Your Home Yourself?
05-28-08
Are you thinking about selling your home? Have you been thinking of selling it by yourself instead of hiring a real estate agent? There are several advantages of selling your home yourself, but there are disadvantages as well. To make it easier for you to make a decision find the most important pros and cons below. The most important PRO for selling your home yourself is MONEY. Selling your home without the help of an agent means more Money in your pocket!
By selling it yourself you save the commissions and fees. - We are not talking about pennies, we are talking about THOUSANDS of dollars which you would have to pay an agent. Another advantage is that you are able to decide the times for open houses and showings. It is also completely up to you where and when you want to advertise.
Unlike a real estate agent who is selling many houses, you can focus on YOUR house, because you are only selling your own house. It is obvious that you will have more interest in the sale than an agent.. But as mentioned above there are also disadvantages selling your house yourself. Real estate agents are paid a lot of money for a reason. Selling a home takes a lot of energy and time. Dealing with potential buyers, open houses, closing sales and of course dealing with legal issues. Real estate agents are familiar with all the above and their experience can impact the sale.
Be realistic when making a decision! Will you drop everything to make a showing? Do you think you are indeed a good negotatior and ask for an offer? Are you 100% sure you are able to close a deal? Selling a home is a big project! It is not everyone who can take on such a big project and can stay calm and professional when dealing with buyers. Selling your home is not impossible, but it is a challenge. If this challenge excites you and if you are willing to learn then it is not impossible managing selling your home without the help of an agent. With some know-how and a lot of energy you can sell your house without the help of a real estate agent and save thousands.
So how to start? Sit down and start evaluating your house. Finding the right price is the first and most important step when selling your home yourself.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
05-28-08
Are you thinking about selling your home? Have you been thinking of selling it by yourself instead of hiring a real estate agent? There are several advantages of selling your home yourself, but there are disadvantages as well. To make it easier for you to make a decision find the most important pros and cons below. The most important PRO for selling your home yourself is MONEY. Selling your home without the help of an agent means more Money in your pocket!
By selling it yourself you save the commissions and fees. - We are not talking about pennies, we are talking about THOUSANDS of dollars which you would have to pay an agent. Another advantage is that you are able to decide the times for open houses and showings. It is also completely up to you where and when you want to advertise.
Unlike a real estate agent who is selling many houses, you can focus on YOUR house, because you are only selling your own house. It is obvious that you will have more interest in the sale than an agent.. But as mentioned above there are also disadvantages selling your house yourself. Real estate agents are paid a lot of money for a reason. Selling a home takes a lot of energy and time. Dealing with potential buyers, open houses, closing sales and of course dealing with legal issues. Real estate agents are familiar with all the above and their experience can impact the sale.
Be realistic when making a decision! Will you drop everything to make a showing? Do you think you are indeed a good negotatior and ask for an offer? Are you 100% sure you are able to close a deal? Selling a home is a big project! It is not everyone who can take on such a big project and can stay calm and professional when dealing with buyers. Selling your home is not impossible, but it is a challenge. If this challenge excites you and if you are willing to learn then it is not impossible managing selling your home without the help of an agent. With some know-how and a lot of energy you can sell your house without the help of a real estate agent and save thousands.
So how to start? Sit down and start evaluating your house. Finding the right price is the first and most important step when selling your home yourself.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Creative Owner Financing
Creative Owner Financing
05-27-08
If you ask a seller to give you owner financing to buy a home it can be awkward. The seller gives owner financing when the seller carries a portion or the entire purchase price less the buyer's down payment. The method of owner financing is a time-tested one and it works in different types of markets. Owner financing is a time tested and good approach that works well in different types of markets. There are many who want to sell their property and at higher rates than the market value. There are many who want to be ahead in the competition with other house on the block. There are many who want to get a constant cash flow from their property after they have sold their property.
There are many benefits of owner financing. It enables the customer to sell property in good and bad markets. There is an edge in the competition inn the markets regardless of the new home construction and increased foreclosures. These cannot lead to an influence on the customer .Owner financing attracts moiré buyers. Creative owner financing can lead to less of price negotiations. The customer can have a constant flow of money after the property is sold. This is one of the prime advantages of creative owner financing. The person makes a transition form owner to the investor when he uses owner financing in buying real estate. Owner financing provides a competitive advantage. The other major benefit is that it provides constant flow of cash after the transaction. The strategy is time tested and it allows you to get money from the property you sold and then continue to gain from the transaction even after the property is sold.
In owner financing the customer can settle his or her own terms. These terms can include interest rates and terms of payment. Creative owner financing leads to benefits for all the different parties involved in the transaction. The buyer and the seller involved in the transaction get cash flow continuously. In real estate owner financing the buyer of the property pays the owner directly instead of through the bank. You can get high interest on the monthly payment in creative owner financing. The seller of the property can get a very high price for the property in creative owner financing. The strategy of owner financing helps ion these ways. The methods used in creative owner financing are ideal for many customers.
One of the disadvantages of creative owner financing is the buyer does not pay the taxes, the water bill or other such payments. If this is the case, the government can seize the property. The buyer will have to pay the overdue bills. The buyer may get the property back but the bills will have to be paid by him. These are only some of the features of creative owner financing. There are other various features but they are immaterial if these are looked into. The advantages and disadvantages have been mentioned. Creative owner financing is an old method to look at modern problems. This makes it unique.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
05-27-08
If you ask a seller to give you owner financing to buy a home it can be awkward. The seller gives owner financing when the seller carries a portion or the entire purchase price less the buyer's down payment. The method of owner financing is a time-tested one and it works in different types of markets. Owner financing is a time tested and good approach that works well in different types of markets. There are many who want to sell their property and at higher rates than the market value. There are many who want to be ahead in the competition with other house on the block. There are many who want to get a constant cash flow from their property after they have sold their property.
There are many benefits of owner financing. It enables the customer to sell property in good and bad markets. There is an edge in the competition inn the markets regardless of the new home construction and increased foreclosures. These cannot lead to an influence on the customer .Owner financing attracts moiré buyers. Creative owner financing can lead to less of price negotiations. The customer can have a constant flow of money after the property is sold. This is one of the prime advantages of creative owner financing. The person makes a transition form owner to the investor when he uses owner financing in buying real estate. Owner financing provides a competitive advantage. The other major benefit is that it provides constant flow of cash after the transaction. The strategy is time tested and it allows you to get money from the property you sold and then continue to gain from the transaction even after the property is sold.
In owner financing the customer can settle his or her own terms. These terms can include interest rates and terms of payment. Creative owner financing leads to benefits for all the different parties involved in the transaction. The buyer and the seller involved in the transaction get cash flow continuously. In real estate owner financing the buyer of the property pays the owner directly instead of through the bank. You can get high interest on the monthly payment in creative owner financing. The seller of the property can get a very high price for the property in creative owner financing. The strategy of owner financing helps ion these ways. The methods used in creative owner financing are ideal for many customers.
One of the disadvantages of creative owner financing is the buyer does not pay the taxes, the water bill or other such payments. If this is the case, the government can seize the property. The buyer will have to pay the overdue bills. The buyer may get the property back but the bills will have to be paid by him. These are only some of the features of creative owner financing. There are other various features but they are immaterial if these are looked into. The advantages and disadvantages have been mentioned. Creative owner financing is an old method to look at modern problems. This makes it unique.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Working With an Interested Buyer
Working With an Interested Buyer
02-23-08
As the "for sale by owner" seller, you will receive calls from people asking questions about the home for sale. When you have a potential buyer who saw the house a couple of days ago and is calling again because they wish to talk more about the house or maybe they want to come by to see the house one more time. You still have several steps you will need to take before getting a written sales contract.
First, you want to invite the potential buyer back as soon as possible. Make sure the house is ready for show even though the buyer has seen it once before. This may be the visit where they will make an offer to purchase or go on down the road to another house they were interested in a second look.
Make sure to greet the potential buyer warmly and offer refreshment, such as tea, coffee or a soft drink. Allow them to look around the house again, but don't hang over their shoulder. Let them be. Hopefully they will want to ask more questions after looking at the house once more. If they don't ask any questions, chances are they are not going to buy. When they do ask questions, answer the questions honestly. You want to pave the way for negotiations. Just stay calm and be friendly.
The buyer may just come right out with they the fact they are interested in the house and may ask for the next step. This is a question you should stay prepared for. You have the buyer put his offer in writing. If you have made arrangements for a contract attorney to negotiate the contract, the attorney will provide you with contract forms. Give one of these contract forms to the buyer. If the buyer states his desire to just talk about the sale, you want to make sure you and the buyer are of the same mind. Have a friendly discussion with him regarding the purchase of the house, but remember, you are not obligate to anything you talk about until it is in writing.
It is best not to negotiate price verbally. A buyer will probably ask for your bottom dollar price and you should answer how you need to see his entire offer in writing and proof they are able to qualify for the loan before you can consider negotiating price.
Just remember to stay calm and friendly. Don't take any negative remarks about the price or your house to heart. A "for sale by owner" deal should be a win-win situation for both parties, so don't allow negotiations to become overly heated or personal.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
As the "for sale by owner" seller, you will receive calls from people asking questions about the home for sale. When you have a potential buyer who saw the house a couple of days ago and is calling again because they wish to talk more about the house or maybe they want to come by to see the house one more time. You still have several steps you will need to take before getting a written sales contract.
First, you want to invite the potential buyer back as soon as possible. Make sure the house is ready for show even though the buyer has seen it once before. This may be the visit where they will make an offer to purchase or go on down the road to another house they were interested in a second look.
Make sure to greet the potential buyer warmly and offer refreshment, such as tea, coffee or a soft drink. Allow them to look around the house again, but don't hang over their shoulder. Let them be. Hopefully they will want to ask more questions after looking at the house once more. If they don't ask any questions, chances are they are not going to buy. When they do ask questions, answer the questions honestly. You want to pave the way for negotiations. Just stay calm and be friendly.
The buyer may just come right out with they the fact they are interested in the house and may ask for the next step. This is a question you should stay prepared for. You have the buyer put his offer in writing. If you have made arrangements for a contract attorney to negotiate the contract, the attorney will provide you with contract forms. Give one of these contract forms to the buyer. If the buyer states his desire to just talk about the sale, you want to make sure you and the buyer are of the same mind. Have a friendly discussion with him regarding the purchase of the house, but remember, you are not obligate to anything you talk about until it is in writing.
It is best not to negotiate price verbally. A buyer will probably ask for your bottom dollar price and you should answer how you need to see his entire offer in writing and proof they are able to qualify for the loan before you can consider negotiating price.
Just remember to stay calm and friendly. Don't take any negative remarks about the price or your house to heart. A "for sale by owner" deal should be a win-win situation for both parties, so don't allow negotiations to become overly heated or personal.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Using a Multiple Listing Service
Using a Multiple Listing Service
02-23-08
The Multiple Listing Service is the largest list of homes for sale. The real estate associations in all fifty states sustain it, which keeps it the largest listing of home for sale. It works so well because most real estate agents use it and most buyers use real estate agents to find their new home.
When a real estate agent gets a seller to sign a listing agreement for the agent to sell the seller's home for a fee of 6% of the purchase price, the first thing the agent does is to place the home in the local Multiple Listing Service. The agent will provide a "for sale" sign and flyer, place an ad in the newspaper and negotiate with the buyer's agent.
The agent who brings the eventual buyer to the seller receives half the commission, which is usually 3% of the purchase price. In rare cases, the agent who finds the buyer might be the same agent who listed the home.
There are two agents involved when selling a home. The listing agent works with the seller. The listing agent is the agent who places the home in Multiple Listing Service, help with the selling price, provide the seller with a "For Sale" sign for the yard and place ads in the local newspaper. The listing agent will also host the "Open House". The listing agent makes 3% of the selling price of the home.
The buyer's agent works with the buyer by searching the Multiple Listing Service for homes to match the buyer's needs and wants. The agent will take the buyer to the home and prepare the offer to purchase and help with the negotiations. They also make 3% of the selling price of the home.
Typically the seller would be required to pay the listing agent 3% of the selling price and the buyer's agent 3% of the selling price. A flat fee Multiple Listing Service listing removes the 3% commission the listing agent would get and replaces it with a flat fee of about $199 - $599.
The seller is still obligated to pay the buyer's agent, but the buyer's agent will usually take a 2.5% commission. As a "for sale by owner" seller you will not eliminate all of the commissions you are required to pay, but it will reduce the amount of the commission you will be required to pay. It will be worth it, if you can find a buyer for your home.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
The Multiple Listing Service is the largest list of homes for sale. The real estate associations in all fifty states sustain it, which keeps it the largest listing of home for sale. It works so well because most real estate agents use it and most buyers use real estate agents to find their new home.
When a real estate agent gets a seller to sign a listing agreement for the agent to sell the seller's home for a fee of 6% of the purchase price, the first thing the agent does is to place the home in the local Multiple Listing Service. The agent will provide a "for sale" sign and flyer, place an ad in the newspaper and negotiate with the buyer's agent.
The agent who brings the eventual buyer to the seller receives half the commission, which is usually 3% of the purchase price. In rare cases, the agent who finds the buyer might be the same agent who listed the home.
There are two agents involved when selling a home. The listing agent works with the seller. The listing agent is the agent who places the home in Multiple Listing Service, help with the selling price, provide the seller with a "For Sale" sign for the yard and place ads in the local newspaper. The listing agent will also host the "Open House". The listing agent makes 3% of the selling price of the home.
The buyer's agent works with the buyer by searching the Multiple Listing Service for homes to match the buyer's needs and wants. The agent will take the buyer to the home and prepare the offer to purchase and help with the negotiations. They also make 3% of the selling price of the home.
Typically the seller would be required to pay the listing agent 3% of the selling price and the buyer's agent 3% of the selling price. A flat fee Multiple Listing Service listing removes the 3% commission the listing agent would get and replaces it with a flat fee of about $199 - $599.
The seller is still obligated to pay the buyer's agent, but the buyer's agent will usually take a 2.5% commission. As a "for sale by owner" seller you will not eliminate all of the commissions you are required to pay, but it will reduce the amount of the commission you will be required to pay. It will be worth it, if you can find a buyer for your home.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Tips on Negotiating for FSBO Homes
Tips on Negotiating for FSBO Homes
02-23-08
Negotiating with buyers is probably something you don't do every day, but you do a certain amount of negotiating in your dealings with co-workers and family. American buyers as a rule are poor negotiators, where as the foreigner sharp their negotiating skills to a fine art. Because Americans are poor negotiators, often times they will let their emotions lead. They may get angry and walk away if you state their offer is "ridiculous". Just as easily your emotions can get involved and kill a deal. The buyer may let it slip they are planning to destroy a feature of the home you are particularly fond of, maybe the garden you so painstakingly laid out.
When negotiating with a buyer, do your best to stay away from making offensive responses when the buyer states the paint on your wall is disgusting. If the buyer notices water stains on the basement floor, tell the truth making up a plausible excuse will destroy your credibility before negotiations even get started.
Make sure your potential buyer is able to acquire a mortgage loan large enough to cover the price you are asking for your home. Don't waste your time if the buyer is not able to get the mortgage loan needed to complete the deal.
Remember the buyer is not your enemy. For negotiations to be successful you will have to talk to him. When the buyer offers less than your asking price ask an explanation. The buyer may have checked the prices of homes very similar to yours. Or possibly the buyer has found an assumed problem with the property. What ever it is find out the reason for the lower offer. Most of the time the buyer is willing to pay something very close to your asking price.
In negotiations it is your turn to counter the offer. First let the buyer know you are taking their thoughts into consideration, but... Then you lower your asking price by a small amount with an explanation of why you are asking the price you are asking. Mainly the fact the price you are asking is in line with the houses sold in your neighborhood with the same features as your house.
If the buyer gave an offer lower than your asking price, because the buyers believes the roof needs major repairing. Let the buyer have the roof inspected at their expense. If the inspection exposes a problem, then you can offer to lower the asking price to compensate the repair of the roof.
Be prepared to be flexible with the asking price. Keep in mind the amount of money it takes for you to hang on to the property. Would it be cost effective to take an offer of about $2000 less than your asking price and wait another 2 - 4 months for the next qualified buyer?
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
Negotiating with buyers is probably something you don't do every day, but you do a certain amount of negotiating in your dealings with co-workers and family. American buyers as a rule are poor negotiators, where as the foreigner sharp their negotiating skills to a fine art. Because Americans are poor negotiators, often times they will let their emotions lead. They may get angry and walk away if you state their offer is "ridiculous". Just as easily your emotions can get involved and kill a deal. The buyer may let it slip they are planning to destroy a feature of the home you are particularly fond of, maybe the garden you so painstakingly laid out.
When negotiating with a buyer, do your best to stay away from making offensive responses when the buyer states the paint on your wall is disgusting. If the buyer notices water stains on the basement floor, tell the truth making up a plausible excuse will destroy your credibility before negotiations even get started.
Make sure your potential buyer is able to acquire a mortgage loan large enough to cover the price you are asking for your home. Don't waste your time if the buyer is not able to get the mortgage loan needed to complete the deal.
Remember the buyer is not your enemy. For negotiations to be successful you will have to talk to him. When the buyer offers less than your asking price ask an explanation. The buyer may have checked the prices of homes very similar to yours. Or possibly the buyer has found an assumed problem with the property. What ever it is find out the reason for the lower offer. Most of the time the buyer is willing to pay something very close to your asking price.
In negotiations it is your turn to counter the offer. First let the buyer know you are taking their thoughts into consideration, but... Then you lower your asking price by a small amount with an explanation of why you are asking the price you are asking. Mainly the fact the price you are asking is in line with the houses sold in your neighborhood with the same features as your house.
If the buyer gave an offer lower than your asking price, because the buyers believes the roof needs major repairing. Let the buyer have the roof inspected at their expense. If the inspection exposes a problem, then you can offer to lower the asking price to compensate the repair of the roof.
Be prepared to be flexible with the asking price. Keep in mind the amount of money it takes for you to hang on to the property. Would it be cost effective to take an offer of about $2000 less than your asking price and wait another 2 - 4 months for the next qualified buyer?
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
The Sales Contract
The Sales Contract
02-23-08
Once you have a pre-qualified or pre-approved buyer who has agreed to the asking price, you will want to fill out a sales contract with his signature. As a rule the real estate agent would handle this detail, but since you are the agent for the "for sale by owner" home, you will be handling this detail. It is a good idea to look over a blank sales contract so you will be familiar with it. You might consider doing this before you have a buyer.
The sales contract will specify the property being sold, the name of the seller and the buyer, the amount of money the house is being sold for, and the date when the title and the purchase money will change hands.
The property you are selling is known to you by the street address however it will have a legal description, which looks nothing like the address. This legal description is needed by the county to identify the property. You will find the legal description of your property on your deed and it will be located on the sales contract you signed when you first purchase the home. The legal description of your property will start with lot and block number and include pages of a platte book which is located at the county court house. This information is necessary when filling out your sales contract, but you don't have to understand it. There are a couple of items listed in the legal description you might need a definition to. Real Property is land. It is considered real property because it will last forever. Improvements are considered to be the buildings and structures on the property. Your home is an improvement on your real property, which the house is sitting.
A large part of the pages in the real estate sales contract is to cover possibilities. For example: "In the event the seller does not fix the leak in the roof" an alternate action is then described, such as this contract is terminated. Or the seller agrees to pay X amount of dollars to cover the repair of the roof.
Other possibilities may include, if the buyer is unable to obtain a large enough loan to purchase your house. The sales contract will require a buyer to describe in more detail than you may want to know about in an effort to prevent the buyer from backing out of the contract with the false claim of "unable to get a loan".
The buyer has a right to pay to have the property inspected. In the sales contract there is a dead line date for this inspection to be completed. If problems are found during the inspection the seller can choose to repair the problem or release the buyer from the contract.
The sales contract will require the seller to turn over a clear title to the property, which has been insured and researched by a title company.
You can obtain Real Estate Sales Agreements at any major office supply store, such as Staples. You can also obtain them from the nearest real estate office, but may be a more complex document than you need to suit your needs. These forms can be downloaded for a fee from audrie.com.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
Once you have a pre-qualified or pre-approved buyer who has agreed to the asking price, you will want to fill out a sales contract with his signature. As a rule the real estate agent would handle this detail, but since you are the agent for the "for sale by owner" home, you will be handling this detail. It is a good idea to look over a blank sales contract so you will be familiar with it. You might consider doing this before you have a buyer.
The sales contract will specify the property being sold, the name of the seller and the buyer, the amount of money the house is being sold for, and the date when the title and the purchase money will change hands.
The property you are selling is known to you by the street address however it will have a legal description, which looks nothing like the address. This legal description is needed by the county to identify the property. You will find the legal description of your property on your deed and it will be located on the sales contract you signed when you first purchase the home. The legal description of your property will start with lot and block number and include pages of a platte book which is located at the county court house. This information is necessary when filling out your sales contract, but you don't have to understand it. There are a couple of items listed in the legal description you might need a definition to. Real Property is land. It is considered real property because it will last forever. Improvements are considered to be the buildings and structures on the property. Your home is an improvement on your real property, which the house is sitting.
A large part of the pages in the real estate sales contract is to cover possibilities. For example: "In the event the seller does not fix the leak in the roof" an alternate action is then described, such as this contract is terminated. Or the seller agrees to pay X amount of dollars to cover the repair of the roof.
Other possibilities may include, if the buyer is unable to obtain a large enough loan to purchase your house. The sales contract will require a buyer to describe in more detail than you may want to know about in an effort to prevent the buyer from backing out of the contract with the false claim of "unable to get a loan".
The buyer has a right to pay to have the property inspected. In the sales contract there is a dead line date for this inspection to be completed. If problems are found during the inspection the seller can choose to repair the problem or release the buyer from the contract.
The sales contract will require the seller to turn over a clear title to the property, which has been insured and researched by a title company.
You can obtain Real Estate Sales Agreements at any major office supply store, such as Staples. You can also obtain them from the nearest real estate office, but may be a more complex document than you need to suit your needs. These forms can be downloaded for a fee from audrie.com.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
The “For Sale By Owner” Sign The Handling of Earnest Money and the Warranty
The “For Sale By Owner” Sign The Handling of Earnest Money and the Warranty
02-23-08
The purpose of the escrow agreement is to record the earnest money as a deposit made by the serious buyer. Usually the serious buyer will have $500 to $2000 in earnest money. The check for this money should be made out as the seller as the payee, but will be held by a third party. You can use your real estate attorney or the buyer's agent, if there is one. In California, the state demands an Escrow Agent perform the duties of the closing attorney. Being a neutral third party the Escrow Agent handles all earnest money deposits. In California, there is no need for the Escrow agreement. Some states demand the use of Escrow Agents or Title Company officers to handle closings. Check with your state as to the stipulations required by the state regarding the sale of a home.
The third party holding the check will turn the check over to the seller or returns it to the buyer based on the terms of the Escrow Agreement. The real estate agents is usually the neutral third party with the responsibility of providing the Escrow Agreement, filling it out with themselves as the third party. This is one of the duties you pay for when you pay the commission to the real estate agent.
The Escrow Agreement is a useful document to have when you are selling your "for sale by owner" home without a real estate agent involved. You can purchase Escrow Agreement along with the additional necessary document to complete your sale at any major office supply store, such as Office Max.
A home warranty is a form of insurance intended to cover the major appliances included in the sale of the home and the systems of the home such as electrical, plumbing, and heating and cooling. A home warranty is recommended if you are selling a less than brand new home. The builders of new homes always offer home warranties with their homes.
The Seller's Warranty is purchased and paid for by the seller. The average cost is $300 to $400. The coverage is for the time period the house is for sale. When the seller purchases a warranty on his home, it is typical for him to include the cost in the sales price. Also the seller should use this when advertising their "for sale by owner" home.
The Buyer's Warranty is purchased and paid for by the buyer. The average cost is $300 to $400. This short term insurance policy covers the same items as the seller's warranty, but it does not take effect until the day of closing and will continue for a year. This warranty can be renewed every year as the buyer requires.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
The purpose of the escrow agreement is to record the earnest money as a deposit made by the serious buyer. Usually the serious buyer will have $500 to $2000 in earnest money. The check for this money should be made out as the seller as the payee, but will be held by a third party. You can use your real estate attorney or the buyer's agent, if there is one. In California, the state demands an Escrow Agent perform the duties of the closing attorney. Being a neutral third party the Escrow Agent handles all earnest money deposits. In California, there is no need for the Escrow agreement. Some states demand the use of Escrow Agents or Title Company officers to handle closings. Check with your state as to the stipulations required by the state regarding the sale of a home.
The third party holding the check will turn the check over to the seller or returns it to the buyer based on the terms of the Escrow Agreement. The real estate agents is usually the neutral third party with the responsibility of providing the Escrow Agreement, filling it out with themselves as the third party. This is one of the duties you pay for when you pay the commission to the real estate agent.
The Escrow Agreement is a useful document to have when you are selling your "for sale by owner" home without a real estate agent involved. You can purchase Escrow Agreement along with the additional necessary document to complete your sale at any major office supply store, such as Office Max.
A home warranty is a form of insurance intended to cover the major appliances included in the sale of the home and the systems of the home such as electrical, plumbing, and heating and cooling. A home warranty is recommended if you are selling a less than brand new home. The builders of new homes always offer home warranties with their homes.
The Seller's Warranty is purchased and paid for by the seller. The average cost is $300 to $400. The coverage is for the time period the house is for sale. When the seller purchases a warranty on his home, it is typical for him to include the cost in the sales price. Also the seller should use this when advertising their "for sale by owner" home.
The Buyer's Warranty is purchased and paid for by the buyer. The average cost is $300 to $400. This short term insurance policy covers the same items as the seller's warranty, but it does not take effect until the day of closing and will continue for a year. This warranty can be renewed every year as the buyer requires.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
The “For Sale By Owner” Sign
The “For Sale By Owner” Sign
02-23-08
You have finished all the prep work needed for your home to look its best and now it is ready to be viewed by potential buyers. If you have listed your home with a realtor, the realtor will provide you with For Sale signs. Since you are the "For Sale By Owner" seller, it will be your responsibility to find or make the perfect sign to adorn your lawn.
To find a sign you can go to the nearest Lowe's or Home Depot to find a "for sale" sign for about $3. You will get a lightweight 15 X 19 inch sign. If you want a heavier sign, which will be 18 X 24 inches, you will probably pay around $8 for this sign. If you really want a good-looking sign, Home Depot carries a metal-framed plastic sign for around $27.
Searching the Internet for "for sale" signs a 16 X 23 inch "For Sale By Owner" sign with a box for flyers for about $24.95 at the Victory Store. Another location is the Logo Sign, which sells an 18 X 24 inch "For Sale By Owner" Sign with a metal stand for $29.95.
For those of you who like to be creative you can make your own sign. Office Depot and the other major office supply store will have everything from the sturdier sign boards and stick on letter you will need to make your own sign.
When adding information to your "For Sale By Owner" sign, do not use magic markers, they can be difficult to see from a car at night. The reflective, stick-in letter and number work the best, but they can be a little pricey at 50 cents per letter. You can add "Agents Welcome" to your sign if you are prepared to pay the commission on the sale. If you have a web site you are using with a virtual photo tour of your home, you will want to include the web address on your sign. The main information you will want to include is how to reach you and your web address. Save the additional information such as feature for the flyers you will have attached to the sign in the waterproof envelope. You will also need to invest in a waterproof envelope for your flyers.
You will want an attractive looking sign for you front lawn. The sign will attract interested buyers into looking at your home.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
You have finished all the prep work needed for your home to look its best and now it is ready to be viewed by potential buyers. If you have listed your home with a realtor, the realtor will provide you with For Sale signs. Since you are the "For Sale By Owner" seller, it will be your responsibility to find or make the perfect sign to adorn your lawn.
To find a sign you can go to the nearest Lowe's or Home Depot to find a "for sale" sign for about $3. You will get a lightweight 15 X 19 inch sign. If you want a heavier sign, which will be 18 X 24 inches, you will probably pay around $8 for this sign. If you really want a good-looking sign, Home Depot carries a metal-framed plastic sign for around $27.
Searching the Internet for "for sale" signs a 16 X 23 inch "For Sale By Owner" sign with a box for flyers for about $24.95 at the Victory Store. Another location is the Logo Sign, which sells an 18 X 24 inch "For Sale By Owner" Sign with a metal stand for $29.95.
For those of you who like to be creative you can make your own sign. Office Depot and the other major office supply store will have everything from the sturdier sign boards and stick on letter you will need to make your own sign.
When adding information to your "For Sale By Owner" sign, do not use magic markers, they can be difficult to see from a car at night. The reflective, stick-in letter and number work the best, but they can be a little pricey at 50 cents per letter. You can add "Agents Welcome" to your sign if you are prepared to pay the commission on the sale. If you have a web site you are using with a virtual photo tour of your home, you will want to include the web address on your sign. The main information you will want to include is how to reach you and your web address. Save the additional information such as feature for the flyers you will have attached to the sign in the waterproof envelope. You will also need to invest in a waterproof envelope for your flyers.
You will want an attractive looking sign for you front lawn. The sign will attract interested buyers into looking at your home.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Talk to a Real Estate Agent and a Real Estate Lawyer
Talk to a Real Estate Agent and a Real Estate Lawyer
02-23-08
This is a "For Sale By Owner" home and you are wondering why you would need to talk to a real estate agent. A good real estate agent can help you in many ways. One way is by helping you prepare a free Comparable Market Analysis. This analysis will give you a list of the prices of similar homes sold recently in your neighborhood. Similar information is available on the Internet, but Comparable Market Analysis is often a better basis for you to set your price on.
The agent can also give you some tips on touch-ups and repairs to be made before a prospective buyer comes to look at your house. The agent can also give you a recommendation on mortgage brokers and home inspectors. He or she can help organize the closing, and could be extremely helpful in negotiating a price for your home.
You will want to get referrals for a couple of good agents. Check with friends, family, or even new neighbors who have recently bought a home. If you like the agent who sold you your current home, you might want to check with them. You can even check with Realtor.com for agent referrals, if you don't like the choices you have.
The agent will want a commitment to make them exclusive in the selling of your home, but the getting the Comparable Market Analysis is not a commitment.
Talking to a Real Estate Attorney will also be helpful in certain situations. Most states will allow you to sell your home with an attorney, but you will want the services of an attorney to hold a down payment, a binder, or earnest money deposit. You will also want an attorney to represent you at closing should the buyer's lending institution send a lawyer to deal with the closing. The attorney can also host and handle the closing proceedings.
You may want an attorney to calculate complicated offers from buyers, and to file your financed mortgages or Lease with Option to Purchase Agreements. An attorney will also handle all other documents, which need to be filed with the County or Courts.
Some states will require you as the "For Sale By Owner" seller to use the services of an Escrow Agent or Title Company to make the transfer of real estate. In these states the Escrow Agent will perform the duties of the closing attorney. This will mean you will still want an attorney to perform the other duties described above.
When hiring an attorney, do not hire a criminal or corporate attorney who probably has never handled a closing of a real estate deal. Get referrals by asking anyone who has ever hired one themselves. Your real estate agent may even be able to refer you to a good real estate attorney.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
This is a "For Sale By Owner" home and you are wondering why you would need to talk to a real estate agent. A good real estate agent can help you in many ways. One way is by helping you prepare a free Comparable Market Analysis. This analysis will give you a list of the prices of similar homes sold recently in your neighborhood. Similar information is available on the Internet, but Comparable Market Analysis is often a better basis for you to set your price on.
The agent can also give you some tips on touch-ups and repairs to be made before a prospective buyer comes to look at your house. The agent can also give you a recommendation on mortgage brokers and home inspectors. He or she can help organize the closing, and could be extremely helpful in negotiating a price for your home.
You will want to get referrals for a couple of good agents. Check with friends, family, or even new neighbors who have recently bought a home. If you like the agent who sold you your current home, you might want to check with them. You can even check with Realtor.com for agent referrals, if you don't like the choices you have.
The agent will want a commitment to make them exclusive in the selling of your home, but the getting the Comparable Market Analysis is not a commitment.
Talking to a Real Estate Attorney will also be helpful in certain situations. Most states will allow you to sell your home with an attorney, but you will want the services of an attorney to hold a down payment, a binder, or earnest money deposit. You will also want an attorney to represent you at closing should the buyer's lending institution send a lawyer to deal with the closing. The attorney can also host and handle the closing proceedings.
You may want an attorney to calculate complicated offers from buyers, and to file your financed mortgages or Lease with Option to Purchase Agreements. An attorney will also handle all other documents, which need to be filed with the County or Courts.
Some states will require you as the "For Sale By Owner" seller to use the services of an Escrow Agent or Title Company to make the transfer of real estate. In these states the Escrow Agent will perform the duties of the closing attorney. This will mean you will still want an attorney to perform the other duties described above.
When hiring an attorney, do not hire a criminal or corporate attorney who probably has never handled a closing of a real estate deal. Get referrals by asking anyone who has ever hired one themselves. Your real estate agent may even be able to refer you to a good real estate attorney.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Showing Your “For Sale By Owner” Home
Showing Your “For Sale By Owner” Home
02-23-08
For tips on important little details you need to know about selling a "for sale by owner" home, you might want to visit a builder's model home. You will want to note some of the things they do to make the home look appealing and inviting to the buyer, such as the light, airy, and serene atmosphere of the home. With a new home you might think would be easy, but it can be done in your home also. One of the complications will be your own taste in décor. If you love the look of heavy drapes, dark colors and walls of family photos you run the risk of turning off a buyer. Here are some tips, which will help give your home that model home look and feel.
First you want to make the home look spacious and light. Open the drapes and the blinds to all the windows and turn on the all the lights in the house. Since buyers have a hard time seeing themselves in a house filled with too many family photos, you will want to remove them all from the walls, shelves, and mantles. Have the walls decorated with sparse paintings or decorations to give the home a spacious look. You can replace the pictures with plenty of live plants or fresh flowers. Fresh flowers have an appealing look on the counter or table.
The smell of the home is an important detail to remember. You can bake bread or cookies, which is a wonderful aroma to walk into. If you prefer something simpler, boil cinnamon sticks on the stove keeping the fire very low. For the bedrooms and bathrooms, set out dishes of potpourri in each room. Make sure to hang fresh towel and put out new soap in the bathroom. Make sure all pet areas are especially clean and odor free. It is usually a good idea to arrange to have the pets out of the house when you are showing the home. Some people might be allergic to your dog, cat or any other household pet.
You want the home to have an atmosphere of serene quiet. If you have children, you will want to make arrangements for them to be a friend's house, or have your spouse take them for ice cream or to the park. Children can be an unwanted distraction when showing a home. I know that sounds mean, but some people are not accustom to having children. You don't need to questions children always seem to need an answer to when you are busy.
Make sure the television is off when showing your home this is another unwanted distraction. If you are using an agent, make arrangements to be out of the home so potential buyers will feel free to open closets and cabinets. If you are showing the house yourself, never apologize for your home; this might draw the buyer's attention to some detail they might have missed.
Only show your home on the weekends and possibly one other day during the week. It is much easier to ensure your home looks it's best for the potential buyers.
Always have plenty of flyer, and blank contracts on hand when doing a showing. It is also a good idea to have your guest book on hand for their contact information and your notes.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
For tips on important little details you need to know about selling a "for sale by owner" home, you might want to visit a builder's model home. You will want to note some of the things they do to make the home look appealing and inviting to the buyer, such as the light, airy, and serene atmosphere of the home. With a new home you might think would be easy, but it can be done in your home also. One of the complications will be your own taste in décor. If you love the look of heavy drapes, dark colors and walls of family photos you run the risk of turning off a buyer. Here are some tips, which will help give your home that model home look and feel.
First you want to make the home look spacious and light. Open the drapes and the blinds to all the windows and turn on the all the lights in the house. Since buyers have a hard time seeing themselves in a house filled with too many family photos, you will want to remove them all from the walls, shelves, and mantles. Have the walls decorated with sparse paintings or decorations to give the home a spacious look. You can replace the pictures with plenty of live plants or fresh flowers. Fresh flowers have an appealing look on the counter or table.
The smell of the home is an important detail to remember. You can bake bread or cookies, which is a wonderful aroma to walk into. If you prefer something simpler, boil cinnamon sticks on the stove keeping the fire very low. For the bedrooms and bathrooms, set out dishes of potpourri in each room. Make sure to hang fresh towel and put out new soap in the bathroom. Make sure all pet areas are especially clean and odor free. It is usually a good idea to arrange to have the pets out of the house when you are showing the home. Some people might be allergic to your dog, cat or any other household pet.
You want the home to have an atmosphere of serene quiet. If you have children, you will want to make arrangements for them to be a friend's house, or have your spouse take them for ice cream or to the park. Children can be an unwanted distraction when showing a home. I know that sounds mean, but some people are not accustom to having children. You don't need to questions children always seem to need an answer to when you are busy.
Make sure the television is off when showing your home this is another unwanted distraction. If you are using an agent, make arrangements to be out of the home so potential buyers will feel free to open closets and cabinets. If you are showing the house yourself, never apologize for your home; this might draw the buyer's attention to some detail they might have missed.
Only show your home on the weekends and possibly one other day during the week. It is much easier to ensure your home looks it's best for the potential buyers.
Always have plenty of flyer, and blank contracts on hand when doing a showing. It is also a good idea to have your guest book on hand for their contact information and your notes.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Setting the Price for Your Home
Setting the Price for Your Home
02-23-08
As the "For Sale By Owner" seller, you will want to set the right price for your home. First you will want to estimate the true market value of your home. This is where the Comparable Market Analysis will be of use. The Comparable Market Analysis will show houses listed by address and the number of square feet in the home. It will also have the asking price of the home and the actually price the home was sold for along with the date of the sale. This will give you an idea of the true market value of your home.
You will look at the houses closest to the same size and number of rooms. You might even want to look at the houses in your neighborhood listed on the Comparable Market Analysis. You will want to look at the size of the lots to determine if they are larger or smaller than your lot. You also want to judge the general condition of the home compared to your own. Then set your price according to your observations. You can make it higher or lower than the price of the homes in your neighborhood already sold.
You might find it simpler to have your home appraised by a real estate appraiser. He or she will place a value on your home based on its condition, plus the sale prices of similar homes in your neighborhood.
You will need to consider the closing cost, which is the amount of money you will receive after the sale. The closing cost includes expenses incurred by the seller, which does not go into the price of the home. These expenses are attorney fees, title search, recording fees, surveyor's fee, or any other costs accompanying the sale and purchase of the home.
If you accept a buyer brought to you by a real estate agent, you will pay half of the closing costs, which will run approximately 3% to 3.5% of the selling price. If you list your home with a real estate agent you can expect to pay 6% or 7% of the selling price.
The ideal situation since you are selling your own home, is for you the "For Sale By Owner" to advertise your own home, and get your own buyer. You will then pay nothing to the real estate agents.
As the seller for the "For Sale By Owner" home you can limit your costs by putting specific instructions in the sales contract as to the maximum amount he will pay towards the buyer's mortgage costs and other closing fees. If a real estate agent is involved, the fees are subject to a separate contract with the agent and are not limited in the sales contract.
Since their a fewer buyers in the market for new homes in cooler weather like the fall and the winter, a "For Sale By Owner" seller might have to lower the price of the home to get a buyer. Families with children prefer to move when the children are out of school, which is typically during the spring and summer months. The only exception to this trend is in warm weather parts of the country. Buyers will not look to purchase a house in the extremely hot weather and will typically wait until spring and fall when the weather is cooler.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
As the "For Sale By Owner" seller, you will want to set the right price for your home. First you will want to estimate the true market value of your home. This is where the Comparable Market Analysis will be of use. The Comparable Market Analysis will show houses listed by address and the number of square feet in the home. It will also have the asking price of the home and the actually price the home was sold for along with the date of the sale. This will give you an idea of the true market value of your home.
You will look at the houses closest to the same size and number of rooms. You might even want to look at the houses in your neighborhood listed on the Comparable Market Analysis. You will want to look at the size of the lots to determine if they are larger or smaller than your lot. You also want to judge the general condition of the home compared to your own. Then set your price according to your observations. You can make it higher or lower than the price of the homes in your neighborhood already sold.
You might find it simpler to have your home appraised by a real estate appraiser. He or she will place a value on your home based on its condition, plus the sale prices of similar homes in your neighborhood.
You will need to consider the closing cost, which is the amount of money you will receive after the sale. The closing cost includes expenses incurred by the seller, which does not go into the price of the home. These expenses are attorney fees, title search, recording fees, surveyor's fee, or any other costs accompanying the sale and purchase of the home.
If you accept a buyer brought to you by a real estate agent, you will pay half of the closing costs, which will run approximately 3% to 3.5% of the selling price. If you list your home with a real estate agent you can expect to pay 6% or 7% of the selling price.
The ideal situation since you are selling your own home, is for you the "For Sale By Owner" to advertise your own home, and get your own buyer. You will then pay nothing to the real estate agents.
As the seller for the "For Sale By Owner" home you can limit your costs by putting specific instructions in the sales contract as to the maximum amount he will pay towards the buyer's mortgage costs and other closing fees. If a real estate agent is involved, the fees are subject to a separate contract with the agent and are not limited in the sales contract.
Since their a fewer buyers in the market for new homes in cooler weather like the fall and the winter, a "For Sale By Owner" seller might have to lower the price of the home to get a buyer. Families with children prefer to move when the children are out of school, which is typically during the spring and summer months. The only exception to this trend is in warm weather parts of the country. Buyers will not look to purchase a house in the extremely hot weather and will typically wait until spring and fall when the weather is cooler.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Selling That “Hard to Sell” Home
Selling That “Hard to Sell” Home
02-23-08
As a "for sale by owner" seller you can have difficulty selling your home. If you have a "hard to sell" home, you still have some options making it easier to sell your home. There is a saying "even ugly home have buyers". I am not saying you have an ugly home, but when you are having a hard time selling your home, there could be one of several different reasons your home is "hard to sell". Location or the neighborhood could be just one of many.
One option you have is to lower the asking price of your home. You find this option hard to take. Just keep in mind, your home won't sell if it priced above the comparable homes in your neighborhood. If you want the same price the house down the street sold for, your home must be in the same condition.
A better option would be an "assumable mortgage". The buyer would be able to assume your current mortgage without having to quality with another mortgage company. Your house could feasibly sell for a higher price than a similar house without an "assumable mortgage". This could be a definite plus should the interest rate on your mortgage be lower than the current rate. This is a matter you would need to discuss with your mortgage company to see if this option is available to you.
Another option is "Owner Financing". You may have a good buyer who is unable to get a large enough mortgage to purchase your home at this time. If the buyer has funds tied up in an IRA, or has children in their final year of college, they may be willing to pay a higher price, or may find it easier to purchase your "for sale by owner" home with help from a seller's mortgage. A seller's mortgage can be a regular mortgage or a balloon mortgage.
With a balloon mortgage, the buyer will make monthly payments, but must pay the balance of the mortgage at the end of a certain time period. The time period can last from six months to about 3 years. By doing this as the seller, you are allowing the buyer more time to arrange a bank mortgage of his own to repay you. The form used for this type of transaction is called the Balloon Note.
A regular mortgage is usually a second mortgage, which covers the portion of the price of the home the amount the buyer receive financing for. With this type of mortgage, the buyer pays the monthly payments until the mortgage is paid off. This type of transaction requires a Mortgage Bond. The form used to certify the regular mortgage or the balloon mortgage has been paid is called the Discharge of Mortgage.
Another method of owner financing is the "lease with the option to purchase". This will work for the buyer who does not qualify for a mortgage loan. The buyer will rent the property with the option to purchase within six months to two years. If the buyer chooses to utilize this option, he pays a lump sum of 3 to 5% of the selling price to you, the seller. Along with this down payment, the buyer pays an additional monthly sum of $50 to $300 included with the monthly rental payment. This additional money goes toward the purchase price of the home and is non-refundable. A "lease with option to purchase" agreement form is needed for this transaction.
All of the forms mentioned above can be located at any of the major office supply stores or you can download them off the web at audrie.com.
The other options you have would be to consider using a real estate agent or a multiple listing service.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
As a "for sale by owner" seller you can have difficulty selling your home. If you have a "hard to sell" home, you still have some options making it easier to sell your home. There is a saying "even ugly home have buyers". I am not saying you have an ugly home, but when you are having a hard time selling your home, there could be one of several different reasons your home is "hard to sell". Location or the neighborhood could be just one of many.
One option you have is to lower the asking price of your home. You find this option hard to take. Just keep in mind, your home won't sell if it priced above the comparable homes in your neighborhood. If you want the same price the house down the street sold for, your home must be in the same condition.
A better option would be an "assumable mortgage". The buyer would be able to assume your current mortgage without having to quality with another mortgage company. Your house could feasibly sell for a higher price than a similar house without an "assumable mortgage". This could be a definite plus should the interest rate on your mortgage be lower than the current rate. This is a matter you would need to discuss with your mortgage company to see if this option is available to you.
Another option is "Owner Financing". You may have a good buyer who is unable to get a large enough mortgage to purchase your home at this time. If the buyer has funds tied up in an IRA, or has children in their final year of college, they may be willing to pay a higher price, or may find it easier to purchase your "for sale by owner" home with help from a seller's mortgage. A seller's mortgage can be a regular mortgage or a balloon mortgage.
With a balloon mortgage, the buyer will make monthly payments, but must pay the balance of the mortgage at the end of a certain time period. The time period can last from six months to about 3 years. By doing this as the seller, you are allowing the buyer more time to arrange a bank mortgage of his own to repay you. The form used for this type of transaction is called the Balloon Note.
A regular mortgage is usually a second mortgage, which covers the portion of the price of the home the amount the buyer receive financing for. With this type of mortgage, the buyer pays the monthly payments until the mortgage is paid off. This type of transaction requires a Mortgage Bond. The form used to certify the regular mortgage or the balloon mortgage has been paid is called the Discharge of Mortgage.
Another method of owner financing is the "lease with the option to purchase". This will work for the buyer who does not qualify for a mortgage loan. The buyer will rent the property with the option to purchase within six months to two years. If the buyer chooses to utilize this option, he pays a lump sum of 3 to 5% of the selling price to you, the seller. Along with this down payment, the buyer pays an additional monthly sum of $50 to $300 included with the monthly rental payment. This additional money goes toward the purchase price of the home and is non-refundable. A "lease with option to purchase" agreement form is needed for this transaction.
All of the forms mentioned above can be located at any of the major office supply stores or you can download them off the web at audrie.com.
The other options you have would be to consider using a real estate agent or a multiple listing service.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Sales Tools for “For Sale By Owner” Homes
Sales Tools for “For Sale By Owner” Homes
02-23-08
You have the "for sale by owner" sign on your lawn for all to see you are selling your home. The "for sale by owner" sign cannot sell your home without help. Those who have never seen the interior will want more information about the home. The flyers will be hanging with your "for sale by owner" sign in the waterproof envelope, you may attach them to mailbox in your neighborhood or you may even go to the nearest neighborhood grocery store to place them under the windshield wipers.
The flyers will not only make people aware the home is for sale, but it is also a fact sheet. It will contain information regarding the features of the home, such as the number of rooms, home warranty, security alarms, pool, or spa etc. You will also tell them how the home is constructed. Is it a wood frame home or a ranch-style brick home? You will also include the size of home the number of square feet, single level or 2-story. Does the home have a basement and/or an attic? The asking price should be included along with pertinent telephone numbers where you can be reached, the address of the house, and the web address to see your Internet photo tour.
If you live on an out of the way street, you might want to consider directional signs to help drivers get to your house. You can get these directional signs at Home Depot or Lowe's for around a dollar a piece or less. Some people will pick a neighborhood they would like to live in and start driving to spot any homes for sale in that area.
Most people who can afford to buy your house will own a home computer and have an Internet service. It only makes sense to utilize the Internet in assisting in finding a buyer for your home. There are places on the Internet where you can find help in creating a web page with photos of your home for prospective buyers to see. Some of the web sites have a free publication with listings of homes for sale.
You will need 10 good photos of your home inside and out. These photos should show off the best features of your home. A host for the web page and you will want to create a link to maps on how to get the location of your home. With the help of some of the "For Sale By Owner" web sites. Building your own web site to sell your home will be a snap.
When advertising in the local newspaper, include your web address and of course include it on your flyer. Neighbors, or people who live and work in the area are usually the same people who purchase homes in the same area. This is the reason an open house works so well. Make sure to check into how to host your own open house for your home.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
You have the "for sale by owner" sign on your lawn for all to see you are selling your home. The "for sale by owner" sign cannot sell your home without help. Those who have never seen the interior will want more information about the home. The flyers will be hanging with your "for sale by owner" sign in the waterproof envelope, you may attach them to mailbox in your neighborhood or you may even go to the nearest neighborhood grocery store to place them under the windshield wipers.
The flyers will not only make people aware the home is for sale, but it is also a fact sheet. It will contain information regarding the features of the home, such as the number of rooms, home warranty, security alarms, pool, or spa etc. You will also tell them how the home is constructed. Is it a wood frame home or a ranch-style brick home? You will also include the size of home the number of square feet, single level or 2-story. Does the home have a basement and/or an attic? The asking price should be included along with pertinent telephone numbers where you can be reached, the address of the house, and the web address to see your Internet photo tour.
If you live on an out of the way street, you might want to consider directional signs to help drivers get to your house. You can get these directional signs at Home Depot or Lowe's for around a dollar a piece or less. Some people will pick a neighborhood they would like to live in and start driving to spot any homes for sale in that area.
Most people who can afford to buy your house will own a home computer and have an Internet service. It only makes sense to utilize the Internet in assisting in finding a buyer for your home. There are places on the Internet where you can find help in creating a web page with photos of your home for prospective buyers to see. Some of the web sites have a free publication with listings of homes for sale.
You will need 10 good photos of your home inside and out. These photos should show off the best features of your home. A host for the web page and you will want to create a link to maps on how to get the location of your home. With the help of some of the "For Sale By Owner" web sites. Building your own web site to sell your home will be a snap.
When advertising in the local newspaper, include your web address and of course include it on your flyer. Neighbors, or people who live and work in the area are usually the same people who purchase homes in the same area. This is the reason an open house works so well. Make sure to check into how to host your own open house for your home.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Preparing Your Home for Sale
Preparing Your Home for Sale
02-23-08
If you are selling your home on your own, also known as "For Sale By Owner or FSBO", you are the agent for your home. Here are tips for you to make the sale of your home a success. Your home must be ready for the critical eyes of the potential homebuyer. You will want to take a look at your home in a new light. You may ignore the chipped paint and the crooked screens, but to a potential homebuyer it is a warning to "stay away from this house."
As the seller in the FSBO home, you will have the opportunity to meet every potential buyer. You will be able to notice first hand the reaction of the potential buyers when they see the outside your home for the first time. Since the yard and the entry way is the first things the potential buyer will see, you will want the lawn and entry way of your home to look its best.
In order for your FSBO home to create a great first impression, let's start with the lawn and the yard. You will need to mow or have your lawn mowed once a week for it to look its best during a showing. You will also want the leaves raked and the sidewalk swept. Make sure to remove all the fallen branches and limbs from the trees and shrubs from the yard.
Your "For Sale By Owner" home will look great with just a little landscaping. If you don't have flowers, plant some or place some potted flowers around to give your landscape some color. You need to repair any problems with the fence and touch it up with a fresh coat of paint or stain, if needed. You will want to do the same with the mailbox by replacing it or painting it.
Put away all lawn equipment and tools, as well as toys or any other clutter in your yard. Store them neatly. If you have a shed, it needs to have everything neatly put away. If you have a large dog, make arrangements for it to stay with a neighbor while the house is being shown.
The front entrance to your "For Sale By Owner" home is just as important as the rest of the home. In fact it is one of the keys to the first impression of your home. Take a good look at your front door, if it needs painting, cleaning or staining, make sure it gets done before the house showing. Remove any old screens if they don't fit or they are slightly damaged in some way. You can add a nice welcome mat and a potted plant if you have room on your entrance steps. Make sure the porch light or any other outdoor lights along with the doorbell are in working order.
Make sure the number of your house is visible from the street especially at dusk and early evening. Replace any missing numbers.
You may ignore the shutter needing a coat of paint, the bent gutters or the loose shingles on the roof because they don't leak, but these are signs to a homebuyer to avoid your home as a serious purchase prospect. Make sure to include washing all the windows. If your home has siding, make sure it is clean and in good repair. Do all the necessary repairs to make your "For Sale By Owner" home look more inviting.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
If you are selling your home on your own, also known as "For Sale By Owner or FSBO", you are the agent for your home. Here are tips for you to make the sale of your home a success. Your home must be ready for the critical eyes of the potential homebuyer. You will want to take a look at your home in a new light. You may ignore the chipped paint and the crooked screens, but to a potential homebuyer it is a warning to "stay away from this house."
As the seller in the FSBO home, you will have the opportunity to meet every potential buyer. You will be able to notice first hand the reaction of the potential buyers when they see the outside your home for the first time. Since the yard and the entry way is the first things the potential buyer will see, you will want the lawn and entry way of your home to look its best.
In order for your FSBO home to create a great first impression, let's start with the lawn and the yard. You will need to mow or have your lawn mowed once a week for it to look its best during a showing. You will also want the leaves raked and the sidewalk swept. Make sure to remove all the fallen branches and limbs from the trees and shrubs from the yard.
Your "For Sale By Owner" home will look great with just a little landscaping. If you don't have flowers, plant some or place some potted flowers around to give your landscape some color. You need to repair any problems with the fence and touch it up with a fresh coat of paint or stain, if needed. You will want to do the same with the mailbox by replacing it or painting it.
Put away all lawn equipment and tools, as well as toys or any other clutter in your yard. Store them neatly. If you have a shed, it needs to have everything neatly put away. If you have a large dog, make arrangements for it to stay with a neighbor while the house is being shown.
The front entrance to your "For Sale By Owner" home is just as important as the rest of the home. In fact it is one of the keys to the first impression of your home. Take a good look at your front door, if it needs painting, cleaning or staining, make sure it gets done before the house showing. Remove any old screens if they don't fit or they are slightly damaged in some way. You can add a nice welcome mat and a potted plant if you have room on your entrance steps. Make sure the porch light or any other outdoor lights along with the doorbell are in working order.
Make sure the number of your house is visible from the street especially at dusk and early evening. Replace any missing numbers.
You may ignore the shutter needing a coat of paint, the bent gutters or the loose shingles on the roof because they don't leak, but these are signs to a homebuyer to avoid your home as a serious purchase prospect. Make sure to include washing all the windows. If your home has siding, make sure it is clean and in good repair. Do all the necessary repairs to make your "For Sale By Owner" home look more inviting.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Preparing the Inside of Your Home For Sale
Preparing the Inside of Your Home For Sale
02-23-08
The outside of the "For Sale By Owner" home is the "first impression" the buyer will have of this home, but the inside of the home is the lasting impression of the home. Before you put the "For Sale By Owner" sign on your front lawn, you will need to go through your home to get rid of the clutter. Clutter and dark colors tend to turn off most buyers. This means you will need to go through the clutter and weed out some of the things you can't or don't use. You may want to have a garage sale or make a donation to your nearest Salvation Army or Goodwill location. If you still have too much clutter, you will want to look into renting a storage space. If you can't see the baseboards in a room, you might still have too much clutter.
Light colored walls with bright lights make your rooms look larger. If you have any darkly painted walls, you may want to consider painting with a white or off-white paint. Increase the number of watts of the light bulbs in your home.
If you have carpet, you might want to replace any carpet pungent or overly stained. If replacing the carpet is not necessary, give a good shampooing. Make sure to polish and clean all windows and mirrors.
Give your stove and oven a thorough cleaning. Clean the oven and the drip pans under each burner. Make sure to remove all grease and dirt build-up. Polish the shine on the outside of the stove and oven. Clean your refrigerator and any other appliances including the dishwasher.
Clean all the window treatments, including the blinds, and clean all the fingerprints around the doorknobs and light switches. Make sure to clean the wall around your wastebaskets, especially the one in the kitchen.
Clean all your kitchen countertops and clear them off as much as possible. Reduce the number of items in your cabinets not only in the kitchen, but in all the cabinets in your house.
Arrange your clothes in your closets to where they hang neatly and not over crowded and remove some of the items off the shelves and on the floor leaving them looking spacious and clear. Make sure to clean and organize your garage, basement and attic space.
If the FSBO home has any leaks, rattles, or squeaks, this gives the impression the home needs a lot of work done on it, so do everything you can to eliminate them. If your stairs, steps or banister is loose, tighten them. Repair any water leaks and eliminate any signs of water damage, such as painting over the water stains or replace any damaged wallpaper. You may want to clean and replace all the caulking in your home. Make sure to repair any doors or windows so they will open correctly. Tighten any loose nuts, screws or bolts, especially on the light switches, doorknobs, and cabinet hinges. Any loose molding needs to be tacked down.
Don't forget to check for odors. If need be, get a neighbor or friend to help you. They will be able to smell odors you have become accustom to. You want you FSBO home to look and smell as fresh, clean and as new as possible.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
The outside of the "For Sale By Owner" home is the "first impression" the buyer will have of this home, but the inside of the home is the lasting impression of the home. Before you put the "For Sale By Owner" sign on your front lawn, you will need to go through your home to get rid of the clutter. Clutter and dark colors tend to turn off most buyers. This means you will need to go through the clutter and weed out some of the things you can't or don't use. You may want to have a garage sale or make a donation to your nearest Salvation Army or Goodwill location. If you still have too much clutter, you will want to look into renting a storage space. If you can't see the baseboards in a room, you might still have too much clutter.
Light colored walls with bright lights make your rooms look larger. If you have any darkly painted walls, you may want to consider painting with a white or off-white paint. Increase the number of watts of the light bulbs in your home.
If you have carpet, you might want to replace any carpet pungent or overly stained. If replacing the carpet is not necessary, give a good shampooing. Make sure to polish and clean all windows and mirrors.
Give your stove and oven a thorough cleaning. Clean the oven and the drip pans under each burner. Make sure to remove all grease and dirt build-up. Polish the shine on the outside of the stove and oven. Clean your refrigerator and any other appliances including the dishwasher.
Clean all the window treatments, including the blinds, and clean all the fingerprints around the doorknobs and light switches. Make sure to clean the wall around your wastebaskets, especially the one in the kitchen.
Clean all your kitchen countertops and clear them off as much as possible. Reduce the number of items in your cabinets not only in the kitchen, but in all the cabinets in your house.
Arrange your clothes in your closets to where they hang neatly and not over crowded and remove some of the items off the shelves and on the floor leaving them looking spacious and clear. Make sure to clean and organize your garage, basement and attic space.
If the FSBO home has any leaks, rattles, or squeaks, this gives the impression the home needs a lot of work done on it, so do everything you can to eliminate them. If your stairs, steps or banister is loose, tighten them. Repair any water leaks and eliminate any signs of water damage, such as painting over the water stains or replace any damaged wallpaper. You may want to clean and replace all the caulking in your home. Make sure to repair any doors or windows so they will open correctly. Tighten any loose nuts, screws or bolts, especially on the light switches, doorknobs, and cabinet hinges. Any loose molding needs to be tacked down.
Don't forget to check for odors. If need be, get a neighbor or friend to help you. They will be able to smell odors you have become accustom to. You want you FSBO home to look and smell as fresh, clean and as new as possible.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Owner Financing
Owner Financing
02-23-08
As a "for sale by owner" seller you probably expected to find a good buyer paying with cash. There are a number of financial institutions available just for that purpose. Sometimes it works out that way and sometimes it doesn't. However, certain homeowners could be missing out on a beneficial opportunity. If you are a "for sale by owner" seller who has a large amount of equity built up in the home, you would be able to take advantage of this beneficial opportunity by owner financing the sale of your home.
There are two major benefits to owner financing the "for sale by owner" home you are selling and of course there is a certain amount of risk involved, but the benefits might out weigh the risks in your situation. A buyer might be willing to pay a higher price for your home at a higher interest rate if you are willing to help him or her by owner financing the home. This people may for some reason not be credit worth to get a conventional loan. Herein lies the risk; there is the possibility they may default on the loan.
Seller with a large equity can get a higher interest rate by offering a mortgage to the buyer than the interest the owner would receive if the money were placed in a bank account. This method of investing their money appeals to some of the older seller because they may be thinking of their retirement days not far ahead. Unfortunately, there are those who are vulnerable when the buyer defaults on his payments.
When offer owner financing to a buyer, the seller will be giving the buyer either a first mortgage or a second mortgage. The second mortgage being a greater risk it comes with a higher interest rate than the first mortgage. The challenges facing the seller would be to qualify the buyer to ensure their income is large enough to make the payments. Obtaining the document to create the mortgage for the buyer, you will want everything documented; as proof of the transaction details should you ever need them. Protecting you from the loss of all or part of the equity invested to create this financing, in the event buyer defaults on the loan.
Qualifying the buyer might be easier than you might think. The buyer can easily get his credit scores from the credit reporting agencies and show them to you. Drawing up the documents needed to create this mortgage can be accomplished with the assistance of some online services. It is recommended you have an attorney look over the document to ensure you are protected and everything is legal and above board.
It is common knowledge some buyers will default on their payments. Foreclosure would be the next plausible step, but it can be difficult and a costly procedure. This is one of the reason owners shy away from financing their own homes.
Knowing the risks involved with owner financing it is still a lucrative way to invest the equity of your home.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
As a "for sale by owner" seller you probably expected to find a good buyer paying with cash. There are a number of financial institutions available just for that purpose. Sometimes it works out that way and sometimes it doesn't. However, certain homeowners could be missing out on a beneficial opportunity. If you are a "for sale by owner" seller who has a large amount of equity built up in the home, you would be able to take advantage of this beneficial opportunity by owner financing the sale of your home.
There are two major benefits to owner financing the "for sale by owner" home you are selling and of course there is a certain amount of risk involved, but the benefits might out weigh the risks in your situation. A buyer might be willing to pay a higher price for your home at a higher interest rate if you are willing to help him or her by owner financing the home. This people may for some reason not be credit worth to get a conventional loan. Herein lies the risk; there is the possibility they may default on the loan.
Seller with a large equity can get a higher interest rate by offering a mortgage to the buyer than the interest the owner would receive if the money were placed in a bank account. This method of investing their money appeals to some of the older seller because they may be thinking of their retirement days not far ahead. Unfortunately, there are those who are vulnerable when the buyer defaults on his payments.
When offer owner financing to a buyer, the seller will be giving the buyer either a first mortgage or a second mortgage. The second mortgage being a greater risk it comes with a higher interest rate than the first mortgage. The challenges facing the seller would be to qualify the buyer to ensure their income is large enough to make the payments. Obtaining the document to create the mortgage for the buyer, you will want everything documented; as proof of the transaction details should you ever need them. Protecting you from the loss of all or part of the equity invested to create this financing, in the event buyer defaults on the loan.
Qualifying the buyer might be easier than you might think. The buyer can easily get his credit scores from the credit reporting agencies and show them to you. Drawing up the documents needed to create this mortgage can be accomplished with the assistance of some online services. It is recommended you have an attorney look over the document to ensure you are protected and everything is legal and above board.
It is common knowledge some buyers will default on their payments. Foreclosure would be the next plausible step, but it can be difficult and a costly procedure. This is one of the reason owners shy away from financing their own homes.
Knowing the risks involved with owner financing it is still a lucrative way to invest the equity of your home.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Offers to Purchase Your “For Sale By Owner” Home
Offers to Purchase Your “For Sale By Owner” Home
02-23-08
The buyer has made an offer for your home and has written up an offer to purchase agreement. If you have not looked at a real estate contract, it might be a good idea for you to study one. By studying a blank real estate contract it will give you some insight and will make the buyer's offer easier to understand. You will be able to recognize terms being used by the buyer, which are not standard.
If the buyer has made any additions in the "special clause" box, which is located above the signature, you will want to read and understand the non-standard demands. The buyer may ask you to cover a portion of the closing cost, which you are not normally responsible for. Or the buyer may demand you move by a specific date.
There are some demands you might want to watch out for. The purchase is dependent on the sale of the buyer's home. The buyer wants an excessive amount of time to obtain financing to purchase your home. The buyer has a very low dollar amount as earnest money. Normally the dollar amount in earnest money is $500 to $2000. A penalty is enforced if the seller cannot move by the buyer's specified date. The buyer requires the seller to pay the buyer's mortgage costs. These items could incur problems such as a delay in the sale of your home and additional costs to you.
Make sure the buyer has been pre-approved or pre-qualified for a mortgage loan large enough to purchase your home. If the buyer is making the offer prior to either one of these, do not sign the offer.
After you have looked over very carefully the buyer's offer, there are several options available to you. One is to accept the offer as is. This can be accomplished by simply signing the offer agreement making it a sales contract. Some states require you sign a separate agreement, which is called a "binder".
Another option would be to make a counter offer. Make notes on the sales agreement and cross out unacceptable conditions on the offer. You could just fill out your own sales agreement enabling you to stipulate the conditions you want in place.
The last option is to reject the offer all together.
You will want to keep in mind if the offered price is lower than you had in mind, look closely at the offer. Are there conditions, which will compensate the lower price?
Some seller will not sign an offer agreement until they have received a minimum of $500 earnest money, however if you have judged the buyer to be a serious buyer, you can do without the earnest money. The earnest money check should be made out to you, but held by a third party such as your real estate attorney or the buyer's real estate agent). This check is non-refundable should the buyer default on the contract.
Even though you have signed an offer, you can accept a backup offer. The buyer with the backup offer must be aware of the current pending contract on the house with the first buyer.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-23-08
The buyer has made an offer for your home and has written up an offer to purchase agreement. If you have not looked at a real estate contract, it might be a good idea for you to study one. By studying a blank real estate contract it will give you some insight and will make the buyer's offer easier to understand. You will be able to recognize terms being used by the buyer, which are not standard.
If the buyer has made any additions in the "special clause" box, which is located above the signature, you will want to read and understand the non-standard demands. The buyer may ask you to cover a portion of the closing cost, which you are not normally responsible for. Or the buyer may demand you move by a specific date.
There are some demands you might want to watch out for. The purchase is dependent on the sale of the buyer's home. The buyer wants an excessive amount of time to obtain financing to purchase your home. The buyer has a very low dollar amount as earnest money. Normally the dollar amount in earnest money is $500 to $2000. A penalty is enforced if the seller cannot move by the buyer's specified date. The buyer requires the seller to pay the buyer's mortgage costs. These items could incur problems such as a delay in the sale of your home and additional costs to you.
Make sure the buyer has been pre-approved or pre-qualified for a mortgage loan large enough to purchase your home. If the buyer is making the offer prior to either one of these, do not sign the offer.
After you have looked over very carefully the buyer's offer, there are several options available to you. One is to accept the offer as is. This can be accomplished by simply signing the offer agreement making it a sales contract. Some states require you sign a separate agreement, which is called a "binder".
Another option would be to make a counter offer. Make notes on the sales agreement and cross out unacceptable conditions on the offer. You could just fill out your own sales agreement enabling you to stipulate the conditions you want in place.
The last option is to reject the offer all together.
You will want to keep in mind if the offered price is lower than you had in mind, look closely at the offer. Are there conditions, which will compensate the lower price?
Some seller will not sign an offer agreement until they have received a minimum of $500 earnest money, however if you have judged the buyer to be a serious buyer, you can do without the earnest money. The earnest money check should be made out to you, but held by a third party such as your real estate attorney or the buyer's real estate agent). This check is non-refundable should the buyer default on the contract.
Even though you have signed an offer, you can accept a backup offer. The buyer with the backup offer must be aware of the current pending contract on the house with the first buyer.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Last Minute Details to Finish Your Sale
Last Minute Details to Finish Your Sale
02-22-08
As the time draws nearer to the closing date, buyers will get cold feet, their spouse will find homes with a lower price, and sometimes mortgage brokers fail to coordinate the cash to arrive by the closing day. In other words you can't relax yet.
When you signed your sales contract, the buyer agreed to buy your home and cannot pull out of the deal for illogical reasons. Basically your job will be to monitor any events, which could release the buyer from the contract. The sales contract is the buyer's commitment to buy your home.
One deal breaker could come by the way of the lender. A lender will send an appraiser to decide on the value of your home. If he assesses the home's value at less than your asking price or the agreed upon price, the lender will not approve the loan.
This situation can be avoided if you hire your own appraiser to assess the value of your home prior to deciding on the asking price. Usually if you set your price to match comparable homes sold in your neighborhood, you should be safe when the appraiser does his appraisal of your home.
Some lenders will have a surveyor dictate the boundaries of your property. Rarely does this create a problem as long as you live within city limits or in a major sub-division. If you are in a rural area, which has not been surveyed in years. If a creek or a small river was used as a boundary line, there is a possibility it could have changed courses. If a portion of the inherited land has been recently divided between heirs. You might have a problem if you are in any one of those situations.
The sales contract allows the buyer to order inspections, which the buyer is obligated to pay for. Should one of the inspections point out a problem you are obligated to pay for the repairs. You will want to be on hand should the inspector have questions, however having your own inspection perform prior to this could help mitigate any questionable items listed on the report. The main goal is to fix the area of dispute, get the agreement, and to avoid present the buyer with any sort of excuse to be released from the contract.
Get the home prepared for a final inspection by the buyer, which may include making repairs noted by the inspectors. You need to notify your lender of your intention of paying the mortgage in full early and request a statement of the final balance. Make sure to locate all the warranties and instruction booklet to the appliances and systems in your home so you can hand them over to the buyer at closing.
Once the closing date has be scheduled, remember to notify the utility company, the telephone company, the water company, trash pick-up and any additional services to your home make them aware of the final billing date.
Get a copy of the settlement statement from the attorney before the closing date, so you will have the opportunity to look it over and to ask any unanswered questions.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-22-08
As the time draws nearer to the closing date, buyers will get cold feet, their spouse will find homes with a lower price, and sometimes mortgage brokers fail to coordinate the cash to arrive by the closing day. In other words you can't relax yet.
When you signed your sales contract, the buyer agreed to buy your home and cannot pull out of the deal for illogical reasons. Basically your job will be to monitor any events, which could release the buyer from the contract. The sales contract is the buyer's commitment to buy your home.
One deal breaker could come by the way of the lender. A lender will send an appraiser to decide on the value of your home. If he assesses the home's value at less than your asking price or the agreed upon price, the lender will not approve the loan.
This situation can be avoided if you hire your own appraiser to assess the value of your home prior to deciding on the asking price. Usually if you set your price to match comparable homes sold in your neighborhood, you should be safe when the appraiser does his appraisal of your home.
Some lenders will have a surveyor dictate the boundaries of your property. Rarely does this create a problem as long as you live within city limits or in a major sub-division. If you are in a rural area, which has not been surveyed in years. If a creek or a small river was used as a boundary line, there is a possibility it could have changed courses. If a portion of the inherited land has been recently divided between heirs. You might have a problem if you are in any one of those situations.
The sales contract allows the buyer to order inspections, which the buyer is obligated to pay for. Should one of the inspections point out a problem you are obligated to pay for the repairs. You will want to be on hand should the inspector have questions, however having your own inspection perform prior to this could help mitigate any questionable items listed on the report. The main goal is to fix the area of dispute, get the agreement, and to avoid present the buyer with any sort of excuse to be released from the contract.
Get the home prepared for a final inspection by the buyer, which may include making repairs noted by the inspectors. You need to notify your lender of your intention of paying the mortgage in full early and request a statement of the final balance. Make sure to locate all the warranties and instruction booklet to the appliances and systems in your home so you can hand them over to the buyer at closing.
Once the closing date has be scheduled, remember to notify the utility company, the telephone company, the water company, trash pick-up and any additional services to your home make them aware of the final billing date.
Get a copy of the settlement statement from the attorney before the closing date, so you will have the opportunity to look it over and to ask any unanswered questions.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Inspections – The Necessary Evil
Inspections – The Necessary Evil
02-22-08
As the agent of the "For Sale By Owner" home, you will need to be aware inspections are required by most contracts. A standard sales contract allow the Buyer to have several inspection conducted on the home and property. Sales can fall through if the inspection result in some unexpected bad news.
The inspections to expect are as follows:
General Inspection: This inspection makes sure all major appliances, heating, plumbing, air-conditioning and electrical systems are in working condition. The Seller is required to keep all of it in working condition until closing. The "For Sale By Owner" seller is responsible for any needed repairs.
Roof Inspection: The "For Sale By Owner" seller can be liable to make repairs for leaks or any other damage to the roof up to 3% of the sale price, especially in areas of heavy snow.
Termites and other Wood Destroying Organisms: States will differ on the liable party in this situation. Some states require the buyer to pay for the inspections, but the seller is responsible for up to 3% of the purchase price in repairs.
In other states, the "For Sale By Owner" seller is responsible for providing the buyer with a certificate guaranteeing the home is clean and termite free. A licensed pest control company must provide this letter or certificate. These inspections run less than $100 in most cases.
There is a time limit for these inspections to be completed in most sales contracts. When the time limit has passed, the buyer forfeits the right to these inspections. If the inspection is completed during the time allowed, the results will be sent to the seller.
As the "For Sale By Owner", you want to avoid any unforeseen surprises that come with these inspections, you can hire an inspector to get a written report on the condition of your home. You should be able to save money on the repairs pointed out by the inspector you hire than if the buyer's inspector points it out. There is a service called the Home Inspector Locator, which will help you find an inspector in your area. The cost of hiring your own inspector usually runs around $200 in most cases.
You could also sell the home "as is", but you will probably have to take a lower price for your home. As the agent of the "For Sale By Owner" home, you must ensure the stipulation of the sale of the house is "as is", is written in the sales contract.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
02-22-08
As the agent of the "For Sale By Owner" home, you will need to be aware inspections are required by most contracts. A standard sales contract allow the Buyer to have several inspection conducted on the home and property. Sales can fall through if the inspection result in some unexpected bad news.
The inspections to expect are as follows:
General Inspection: This inspection makes sure all major appliances, heating, plumbing, air-conditioning and electrical systems are in working condition. The Seller is required to keep all of it in working condition until closing. The "For Sale By Owner" seller is responsible for any needed repairs.
Roof Inspection: The "For Sale By Owner" seller can be liable to make repairs for leaks or any other damage to the roof up to 3% of the sale price, especially in areas of heavy snow.
Termites and other Wood Destroying Organisms: States will differ on the liable party in this situation. Some states require the buyer to pay for the inspections, but the seller is responsible for up to 3% of the purchase price in repairs.
In other states, the "For Sale By Owner" seller is responsible for providing the buyer with a certificate guaranteeing the home is clean and termite free. A licensed pest control company must provide this letter or certificate. These inspections run less than $100 in most cases.
There is a time limit for these inspections to be completed in most sales contracts. When the time limit has passed, the buyer forfeits the right to these inspections. If the inspection is completed during the time allowed, the results will be sent to the seller.
As the "For Sale By Owner", you want to avoid any unforeseen surprises that come with these inspections, you can hire an inspector to get a written report on the condition of your home. You should be able to save money on the repairs pointed out by the inspector you hire than if the buyer's inspector points it out. There is a service called the Home Inspector Locator, which will help you find an inspector in your area. The cost of hiring your own inspector usually runs around $200 in most cases.
You could also sell the home "as is", but you will probably have to take a lower price for your home. As the agent of the "For Sale By Owner" home, you must ensure the stipulation of the sale of the house is "as is", is written in the sales contract.
Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000
Sunday, January 11, 2009
Getting the Asking Price for Your “For Sale By Owner” Home
Getting the Asking Price for Your “For Sale By Owner” Home
02-22-08
When selling your "for sale by owner" home, you will receive offers lower than the price you are asking for. It may be easier to cave in and in an effort to sell quickly take the lower price. There is a method of negotiating to keep the asking price on the table and still make the sale.
It is a good idea to have proof, which will show the asking price to be a fair price. An appraisal from a real estate appraise is just one, showing them comparable prices on homes sold in your area similar to your own house is another and have a knowledge of the current market conditions. Armed with this ammunition when you go to the negotiating table will help you win the battle over price.
Even though it may be what is considered to be a buyer's market, as the seller you still have the upper hand. If you are getting nowhere with the buyer at hand, go on to the next one, unless you are in a corner and must sell your home fast.
To get the asking price for your home be willing to make some compromises. You might offer to move out of the home early and to close the deal quicker to allow them the home much sooner.
A method, which often times works, is offering to pay a portion if not all of the closing cost. This works extremely well, if the buyer is strapped for cash. If the buyer is having a difficult time in coming up with the down payment and all of the other financial obligations it takes to purchase a home, the buyer will be open to this idea.
If you are not open to the idea of the cash outlay on your part, you could offer the buyer more money for the down payment by seller financing, a low-interest "carry back" loan. This method will allow you to foreclose on the property and take it back should the buyer default on making the payment on the loan.
You could negotiate with items already in the home. You could offer to leave all the major appliances in the home and possibly include the window treatments. There may be other items you were planning on taking with you to help you negotiate to keep your asking price. You could even consider paying additional cost of repairs found in the inspections. Buyers would like to have a little extra money to pay for repairs, the lender will not allow you to give them a credit for costs.
If all else fails, hire an expert to help you close the deal. A real estate attorney or another person experienced in real estate negotiations. You have emotional ties to the home you are seller, and the professional will not. It may make the deal go much smoother. One more tip, when making any changes to the terms of the contract whether they are concessions or leaving additional appliances behind. Always put it into writing.
Mark Moebius
CEO MILJONAIR Homes
Custom Home Builder St. Louis
3452 St. Albans Road
St. Albans MO 63073
636-300-9000
Thursday, January 8, 2009
Advertising Your “For Sale By Owner” Home
02-22-08
When advertising your "for sale by owner" home, there are three essential elements for a successful advertisment. The first is an attention-grabbing headline. When writing your headline, use the features of your home in the headline, such as "Solid as a Rock!" or " Assumable Loan!" You want your headline to be explosive enough to catch the potential home shopper's attention. You want them to read your ad about your home. By piquing their interest they will be interested enough to see your home above all the others.
Another element is to highlight one of the properties best features, such as an ocean view, recently remodeled or within walking distance of schools. You are trying to entice their pleasure or practical portion of their mind. This will give them even more reason to want to look at your home before making a final purchase.
A good closing line will entice the potential buyer to call. You will want to appeal to their desire to own a home, or maybe as a good investment, or even their sense of urgency. "See it Now, before it is gone!" or "Don't pay your landlord another dime!" are just some examples. Now you have your ad written you will want to place the ad in your local newspaper.
Another effective method of advertising is an "Open House". You have your house already to show, the repairs have been made and the clutter cleared, so advertise your "open house". Make up flyers so everyone who attends your open house will get a flyer before they leave. The flyers will list your price and describe the property.
When scheduling your "Open House", you will want to schedule it for a Saturday or Sunday afternoon between 2 - 5 PM is the best time of day. You will also want to check your calendar to ensure your "Open House" is not competing with any kind of major sports playoffs or any major religious holidays.
You will want to have a guest book so you can get the names and addresses of every person who attends. If you can, make sure to take notes, and jot down every positive impression and comment made by those who attended. You will want to be able to keep in touch of people who show an interest. This could be especially important if you reduce your asking price or change the terms of the sale later on. During the "Open House", be prepared to make them aware of the schools in the area.
Make sure to have plenty of blank sales contracts in case someone is interest enough to buy your home. You can get these sales contracts can be bought at any office supply store, or you can even download a sales contract to your computer.
The flyers should be an 8 ½ x 11 inch fact sheet describing your home, the asking price and numbers on how you can be reached. Every guest should leave with your "Open House" with one of these flyers. If you are advertising on your web page with pictures of your home, make sure the web address is also listed on these flyers. You will also want to attach these flyers under windshield wipers of cars, and attach flyers about your "Open House" to neighborhood mailboxes. Do Not Place Anything Inside a Mailbox! It is against the law.
You might want to place an "Open House" sign in your front yard with balloons attached. If you are on a street with not a lot of drive by traffic, you may want to use some signs on prominent corners with arrows pointing the direction to your house.
Mark E. Moebius
CEO of MILJONAIR Development
3451 St. Albans Road
St. Albans MO 63073
636-300-9000
http://miljonairdev.com
Wednesday, January 7, 2009
Are Improvements and A Warranty Necessary?
02-22-08
The "For Sale By Owner" home may need improvements if the home is in poor condition. Improvements will increase the price of the sale of the home. Just keep in mind if your home is in good condition, spending a thousand dollars on improvements may not increase the sales price by a thousand dollars. However, adding improvements to the kitchen and bathrooms will more often than not increase the price of the sale.
Typically spending a thousand dollars on home improvements usually will only increase the sales price about nine hundred dollars. However, if you were able to do the work yourself, the improvement would work to your advantage. Meaning a thousand dollar project could only cost you about five hundred dollars. You will still have the same nine hundred dollar increase in the price of the sale.
It is a good idea to think twice before putting money into a home you are selling. You may not get enough of a return on your investment. The improvements will be the responsibility of the new homeowner.
However if the house were in such sad shape, it would not sell at all without improvements and major repairs, then improvement will have to be made to the home.
Once your "For Sale By Owner" home has everything fixed and is ready to go on the market, you might want to consider a home warranty. A home warranty is short term insurance to cover the major appliances, electrical system, plumbing system, heating and air conditioning while the home is on the market. The cost of the warranty is about three or four hundred dollars and paid for by the seller. However, many sellers include the cost in the sales price of the home.
Homebuilders always have home warranties with new homes. It is reasonable to want a warranty on an older home because of the older appliances and plumbing and electrical systems.
If you get a Seller's Warranty, make sure to advertise you have a warranty on the home. It is an inexpensive method of making prospective buyers feel more comfortable before making the purchase.
You may hear about a Buyer's Warranty. This warranty is paid for by the homebuyer and coverage starts on the day of closing and lasts for a year. This warranty covers the same appliances and systems as the seller's warranty. This insurance can be renewed every year, it is up to the homebuyer who pays for the insurance.
Mark E. Moebius
CEO of MILJONAIR Development
3451 St. Albans Road
St. Albans MO 63073
636-300-9000
http://miljonairdev.com
Tuesday, January 6, 2009
Can You Be a “For Sale By Owner” Seller?
02-22-08
Many people like the idea of not paying a commission. 6% of the asking price can run into a large chunk of change. It may be what motivates most people into trying to sell their own home. There is more involved into selling your own home than just putting an ad in the paper.
You will need to do some advertising and marketing for your property and show it to potential buyers. There will be paperwork to deal with and handling the closing. This could be a huge undertaking for some and a great challenge for others. Which on are you? So let's look at some characteristics needed to sell your home.
Are you naturally sociable? Most people find it very easy to talk to people. There is no apparent pressure other than the pressure of your own making, but if you can talk to buyers, then you can do this. You just need to be yourself, act natural. You will be talking to them about something you know quite a bit about - your home. Before you know it you will have a sale. Of course if you are the type who is not comfortable around strangers and do not think to much about social contact, this might not be something you can do.
Do you enjoy doing paperwork? A lot of people don't care for it much doing paperwork, but they can do it when it is absolutely necessary. A lot of the paperwork is very technical, if need be you might consider hire someone to handle the paperwork for you. Much of the paperwork is secretarial so you will need to know the order in which things must be done. You can easily find assistance with any aspect of the sale you have trouble with.
Can you arrange you schedule to handle the demands on your time? You will need to be available to show the house. This cannot be accomplished by showing a couple of weekends and a couple of nights. You will want to have a flexible schedule so you or someone in your family can show the house.
Will it bother you to show a house to a stranger alone? Many people are afraid to allow strangers into their home when they are alone. If this is you, you might want to find a friend or relative to show the house with you. If you are fearful of entering into a contract with a stranger, it is recommended you have an escrow agent, a real estate attorney or even a real estate agent to host the closing proceedings.
If you have a problem with all of these responsibilities, you may want to go with a real estate agent and pay the commission. It is possible for most people can successfully sell their homes on their own, but it is a complex procedure. You might want to wait until you have gone through at least one sale handled by agents before you have tried it on your own. You will have an idea of what is entailed in the selling of a home.
Mark E. Moebius
CEO of MILJONAIR Development
3451 St. Albans Road
St. Albans MO 63073
636-300-9000
http://miljonairdev.com
Monday, January 5, 2009
Day of Closing and the Settlement Statement
02-22-08
Typically the closing date is 30 - 45 days after the sales contract has been signed. This is the day the title of the property changes hands and all the outstanding debts on the home are paid. This is the same day you as the "for sale by owner" seller will receive your cash.
Most states require the seller's attorney to handle the closing, but there are some states requiring the lender's attorney to do the closing. Still other states demand an Escrow Agent or a Title Company to handle the closing. When an Escrow Agent or a Title Company handle the closing the attorney of the seller and the buyer are not typically in attendance.
The closing attorney will prepare a Settlement Statement, which will show in detail the money received and the money paid out. Make sure to bring your driver's license or other means of identification along with the deed to the property to be transferred to the buyer. If your state requires it, bring the termite letter.
Often times there will be money remaining in the escrow account. You will receive a check for this money after closing. You will not receive it at the time of closing.
The Settlement Statement is a list of all the money and where it is to be distributed, such as mortgage payoff balance. It will also list the remaining balance, which will go to the seller. This document is reviewed on closing day to inform all the parties involved the final standing of the property.
The right side of the page will list the amount the buyer pays. The left side will list the amount the seller receives. It starts with the price of the property, which the dollar amount the buyer must pay and the seller will receive. The buyer's closing cost will be on the right. Because this is money paid for services regarding the sale, the seller will not receive any of this money.
The yearly amount of the property taxes will be listed on the right side as money the buyer will have to pay. This money goes to the seller if he has paid for taxes and includes the time the buyer will occupy the home. It will be considered a refund.
The earnest money paid by the buyer will be listed on the right side while the closing cost and the mortgage pay off amount the seller must pay will be listed on the left side.
After all the money has been calculated, the dollar amount on the right side of the page is the money the buyer must pay, which is essentially his down payment. The dollar amount on the left side is the money the seller will get to keep as his profit on the sale of his "for sale by owner" home.
Mark E. Moebius
CEO of MILJONAIR Development
3451 St. Albans Road
St. Albans MO 63073
636-300-9000
http://miljonairdev.com
http://relocatetoofallon.com
Sunday, January 4, 2009
"For Sale By Owner” Sellers Want More for Their Money - MILJONAIR Homes
"For Sale By Owner” Sellers Want More for Their Money
02-22-08
Since you have agreed to provide the buyer of your "for sale by owner" home, in essence you will be converting the equity you have in the property into payments. The buyer will be making payments to you just as he would to a loan company.There are two methods commonly used when doing owner financing. One method, the buyer signs a real estate contract with the agreement to make payments to you. He will receive the title to the property after the contract is paid in full. Another method, the buyer signs a deed for the property at the closing and a promissory note along with a deed of trust which allows you, the seller, to foreclose on the property should the buyer default on the payments.
If the seller wants cash paid in one large sum instead of waiting for the payments, the buyer could agree to an early pay-off on the loan. Another possibility would be for the seller to borrow the money using the note as security or the seller could find someone who will buy the note from him. The seller will ultimately get less for the loan by selling than he would if he waited for the payments, but it is an alternative.
It is a good idea to get a credit report on your buyer when you sell your home. If you belong to a credit-reporting agency, you would have the buyer sign a paper giving you the authority to order a copy of his credit report. Once you receive the report look it over carefully. You will want to note any negative reports, such as late payments, judgments, or non-payments.
Get a large enough down payment. Bank loans require anywhere from 3% to 5% down payment, but to the owner financier it is probably too low. As the "for sale by owner" seller you will want the buyer to pay a healthy portion of the equity. The amount of down payment you should get for your home is a minimum of 10% of the purchase price. If you can get more, you will be better off.
The interest rate on the seller-financed note should be higher than a market note. In the business pages of your local newspaper you will be able to find the current market rate on home mortgages. As the seller you should be able to get interest at 1.5% to about 2.5% higher than a bank note, which will make the note easier to sell should you go that route.
You want the buyer to make monthly payment rather than quarterly or yearly payments and the term of the note should only be about 10 - 20 years rather than 30 years. The institution likely to buy your note will prefer a shorter-term loan than a long-term loan.
A note where the buyer is making regular payments on time is much more likely to sell than a note where the buyer is late consistently.
The note should also include payment of attorney's fee as well as a late payment fee. When you have all these things in place you will get more a better return on your investment even if you should decide to sell the note.
Mark Moebius
CEO MILJONAIR Homes
Custom Home Builder St. Louis
3452 St. Albans Road
St. Albans MO 63073
636-300-9000
Saturday, January 3, 2009
Finding the Right Buyer
02-22-08
When selling a home, a good real estate agent will pre-qualify buyers before showing them property. Since you are a "for sale by owner" seller, you will want to pre-qualify your buyers before you sign a sales contract. Do not sign a contract with an unqualified buyer. If the buyer is unable to obtain a mortgage large enough to purchase your home, your home will be tied up by the contract preventing you from seeking another buyer.
Just for your information a pre-approved buyer has been approved for a loan with a lending institution for a specified dollar amount. A pre-qualified buyer is a buyer with an unconfirmed estimate of the dollar amount he can borrow from a lending institution. You want the buyer who is able to secure a loan large enough to purchase your home.
When it comes to pre-qualifying a buyer, you will be required to perform this task on your own. This will require you to sit down with the potential buyer and ask simple but personal information. You will need to know the buyer's income and the buyer's long-standing debt. You might embarrassed about asking this kind of personal information of a complete stranger, in some cases, or a neighbor, but don't be. Most of us are aware and are ready to answer questions of this nature when making a large purchase.
You will need a pre-qualifying worksheet in order to the calculations by hand. After getting all the buyer's information on monthly long-standing payments and income, you can obtain an estimated maximum dollar amount the buyer is able to borrow.
If you prefer a simpler method, while you have the buyer in your home you can have the buyer pull up moneynest.com or Ditech.com. These web sites will calculate the estimated maximum dollar amount your potential buyer is able to borrow.
The estimate is based on the yearly income, the monthly long-term debt, and the national cost of living average. The buyer's down payment is then added to the estimated mortgage loan to come up with the maximum dollar amount the buyer can pay for your home.
It is important to find the right buyer for your home. You could waste a lot of your time by giving all of your attention to a very interested buyer, but on who cannot acquire the loan needed to complete the transaction. Upon first meeting with a prospective buyer everyone is on even terms. When they express an interest in making a purchase is when you will want to pre-qualify them. Once you have the buyer qualified it will be a relief to you both and you can both get down to the more serious business of making the purchase of your home.
Mark E. Moebius
CEO of MILJONAIR Development
3451 St. Albans Road
St. Albans MO 63073
636-300-9000
http://miljonairdev.com
Friday, January 2, 2009
Information the Buyer Needs to Know
Information the Buyer Needs to Know
02-22-08
The items included in the sale of the house could result in a problem between the seller and the buyer. As the seller for the "for sale by owner" home, it will be your responsibility to mediate when a dispute arises.
As a rule anything attached, built-in or connected with a gas line is considered to be part of the house. Appliances normally included in the sale would be the stove, dishwasher, and gas grill, even if it is an outdoor model. The appliances not normally included are the refrigerator, clothes washer and dryer. Sellers will sometimes ask a higher price if they include appliances not usually included in the sale.
Chandeliers, wall clocks, kitchen cabinets and window treatments are also considered part of the property. If you have a chandelier or a grandfather clock you wish to keep because they are a family heirloom or a cherished item, take them down before showing the house and replace them with something else. This way there will not be a dispute over something you take out of the house the buyer considers part of the property. If you are unable to take it down before moving, list the item or items as personal property.
As the seller most states require you to inform the buyer certain facts about the home. You will attach a seller's disclosure form to the real estate contract. The buyer has the right to know if there has ever been fire, wind, or flood damage to the home requiring repair. The buyer also need to be made aware of any possible hazards, such as the home is on a fault line or near a military training facility which may have potential explosives.
The buyer must be made aware is this home is a part of a homeowner's association which requires payment of fees. Also you will have to attest if you have any knowledge of lead based paint hazards on the property. Some states require you to inform the buyer of the method by which they can find any known sexual predators living in the neighborhood.
The buyer will also need to made aware of burglar alarms, fire alarms, smoke alarms, satellite dish, and washer/dryer hook-ups.
The disclosure forms are all available at all of the major office supply stores, such as Staples, or Office Depot. You can also download them off the Internet for a fee from audrie.com.
Mark Moebius
CEO MILJONAIR Homes
Custom Home Builder St. Louis
3452 St. Albans Road
St. Albans MO 63073
636-300-9000
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