Monday, February 17, 2014

For Sale by Owner Sarasota

The topic of for sale by owner, of FSBO, deserves an update in terms of how owners who try to sell their homes themselves in today's market face a lot of issues they may not be able to handle themselves.

1) Property valuation:  A lot of people think Zillow and Trulia are the authoritative word when it comes to real estate values.  Nothing could be further from the truth.  In Sarasota, Zillow overvalues the median sales price of single family homes, compared to the MLS.  Read more here on my real estate website:  www.davidbarrhomes.com/debunking_zillow.

2) Showings:  In the Sarasota area, most buyers come from out of town and those buyers select a local agent to represent them.  Are you willing to work with a real estate agent representing a buyer?  Will you be available to show the home when the buyer is available?  If you want to sell your home on your own, you have to be flexible to accommodate the buyer's schedule, who often has limited time to tour properties during their visit.

3) Inspections:  Do you know what a 4-point insurance inspection is?  Did you know that if any of the systems inspected does not pass insurance requirements, a buyer cannot get a mortgage?  What happens to your contract if the buyer can't get insurance?

4) Insurance:  Are you in a flood zone?  Are you aware of the increases in flood insurance premiums and how they affect a buyer getting a mortgage?  Do you have contacts in the insurance industry that offer flood insurance for less than federally-backed programs?  What happens to your contract if the mortgage, homeowner's insurance, and flood insurance expense puts the buyer's debt to income ratio above what their lender will approve?

5) Results:  According to NAR, homes sold by owner sell at an average of 10% less than homes sold by Realtors.  90% of FSBO's said they would hire a Realtor the next time they sold a home.

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