The internet puts the world at our finger tips. You can search for anything, and in a few moments have an answer. The internet has definitely helped with real estate. Professionals can be in touch with potential clients with a click of a mouse. People searching for houses can see everything that is for sale in the area they are looking. Some sites even have for sale by owner houses. What is a for sale by owner (fsbo)? It is a person who decides to list their house for sale without the help of a licensed professional. So why use a licensed professional, if you don’t have too? Because the selling process is more than just a person listing a house for sale. As a buyer what do you do if you want a fsbo? Below are a few reasons you would want to use a real estate professional and if you have any any questions, contact Tamela at: 931-237-1417, she is a licensed professional who can answer any of your real estate questions!
Paperwork – Did you know that a purchase and sale agreement is at least 10 pages long to start, 11 if it is a new build. That does not include any additional amendments, addendums, proposals, extensions, etc. These items have to be filled out correctly to avoid issues down the line.
Steps after paperwork – Who is going to pay for inspections? What was agreed upon in the contract? The seller must make sure they do everything that they agreed to do. The buyer has to make sure their bank gets all the paperwork, depending on the loan type, additional paperwork may be needed for the seller to sign. The buyer must schedule an inspection, and work a time out with the seller to do so, unless the buyer has waived that right. And if the buyer waived that right, does the buyer understand fully what that entails? The bank will schedule an appraisal, and if the home does not appraise for the price, the seller and buyer must now negotiate new terms. Does the seller know how long that appraisal will be on file if the buyer walks away? These are only a few things that happen after the contract has been signed.
Negotiate and pricing – That does not only mean on a price. As a seller, you will want to be able to negotiate a fair price that will help the home sell quickly and still make a profit. As a buyer, you do not want to low ball the seller with an insulting offer. But what other negotiating is there? As stated above, terms within the contract, not only price must be negotiated, closing costs, closing company, closing date, home warranty, items to be included and excluded…to name a few. You will be also working with banks, inspection companies, appraisers, contractors (if items have to be fixed)…all these people have their own items they are working on, and you will be expected to be knowledgeable when handling them. And as a side note, keep in mind that fsbo houses tend to sell for lower prices (sometimes below average for the area) and sit on the market longer?!
Do you really know the market – The internet and the news give us a lot of information regarding the real estate market, sales trends, prices etc. But do you really understand it? Do you know how these things different from city to city? Sometimes differ from block to block! You need someone who understands these trends, who can walk you through the process and take the burden off your shoulders (whether you are selling or buying).