Category: For Sale By Owner

Category: For Sale By Owner

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A Detailed Guide To Short Sale Homes

A Detailed Guide To Short Sale Homes Whether the type of market is a “Seller’s Market” a “Buyer’s Market” or anything in between, home buyers will sometimes look for out-of-the-box opportunities when it comes to buying a home. One form of out-of-the-box opportunity come by the way of “short sales.” In this blog, you will learn what a short sale consists of, how to approach them, the pros, cons, and important points regarding them.   By the end, you’ll also gain an idea as to whether or not a short sale opportunity is the right one for you. What Is A Short Sale Simple Question – Not So Simple Answer A Short Sale is a property being sold for less than the debt(s) against it, “forcing” the entities who have debts against the home (e.g., bank mortgage, home equity loan, mechanics lien, etc.) to potentially accept only a portion of what they are owed. This can oftentimes occur when the homeowner(s) are not capable of keeping up with their mortgage payments or perhaps were part of a lawsuit that resulted in a lien against the property, perhaps the homeowner has a home equity loan and mortgage, when combined, exceeds the property value, or any other recorded debt against the property which would put the property into a “net negative” valuation. For the sake of this blog post and for simplicity sake, we will assume that there is only one debt against the property, the mortgage bank (“LENDER”). What Is The Homeowner’s Role In A Short Sale? The Homeowner And The Debt(s) The homeowner has some responsibilities to the lender in regards to establishing a short sale situation: The homeowner should be prepared to prove their financial hardship to the institution(s) who have interest in the home, for example: Job Loss, Medical Expenses, Other Economic Difficulties. They need to get the lender’s approval to sell the home for less than what’s owed. (THIS is normally a lengthy process!) The homeowner may still be responsible for the remaining debt after the sale (though some lenders may forgive this debt). It’s even more important that the homeowner be selective of the real estate agent and attorney used for this type of transaction.  Though many attorneys are straightforward as to whether they are skilled at this type of transaction, real estate agents oftentimes are not. Beyond that, there are still some additional considerations for a homeowner who is looking to explore a short sale: Credit Impact: There will likely be damage done to a homeowner who sells through a short sale process Taxes & Legal: In some cases, the forgiven debt (the difference between the mortgage balance and the sale price) could be considered taxable income by the IRS. Homeowners considering a short sale should consult a tax advisor and a real estate attorney to understand all legal and financial implications. Charles Bianco, REALTOR® has experience in Short Selling properties and can provide you with the real estate service you need during this type of sale. CLICK HERE to request your FREE phone consultation with him! What is The Lender’s Role In A Short Sale? The Lender(s) Are The Key To The Transaction The lender has the responsibility to ultimately decide on the final price the home can sell for, its terms, and whether or not they will actually approve the sale to begin with. As mentioned earlier, the problem with short sales is that the lender is fully aware that they are taking a loss, and no one likes taking a loss.  It’s up to the lender to do what they feel they can do to minimize the loss as best as possible, should a home sale be the agreeable option for the homeowner and the lender, together. The Lender has to agree to the short sale because they will receive less than the full mortgage balance, however, they know this may be better than a foreclosure process. The lender typically orders an appraisal or a BPO (Broker Price Opinion) to determine the current market value of the home to determine if a short sale makes sense for them. The lender has to agree to the process and do a valuation of the property to protect itself during this type of transaction.  The lender has to look out for its best interests and takes these measures to do so. Pros, Cons, And Important Short Sale Points The Important Elements Of The Short Sale For those who are interested in the idea of a short sale, this summary of the pros, cons, and important points is a worthwhile read, so let’s jump right into it. PROS: May create a “discount opportunity” for buyers. The long length of the process may deter buyer competition. Short Sale properties are sometimes stigmatized as “bad homes,” similar to foreclosures, removing some buyer competition. CONS: Many listing agents are not experienced at Short Sales, creating unnecessary delays, or even a cancellation of sale. Your down payment money will be held in escrow for longer than a traditional sale. The Homeowner might accept an offer, but the lender may reject the offer well after. The Homeowner may accidentally miss steps of the process, creating problems. Bank appraisal may cause initial offer to be rejected well after it was made. Lender may abruptly reduce or cancel commissions to agents, causing buyers to potentially be responsible. The overall process may take up to a year or longer to complete. The risk of a short sale being cancelled due to economic recovery or other outside influence. There may be more than one lien against the property in addition to the lender, causing delays and additional parties to consider offer acceptance. Important Points: Real Estate listing agents may advertise a listing price that isn’t “bank approved.” Lenders may require more than a low down payment. Homeowner’s economic problems may result in the property not being maintained. If property taxes haven’t been paid, it may cause further delays or issues. All in all, short sales are

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For Sale By Owners Can Be Successful!

Breaking Down The Process For You You have the right to represent and to sell your own home in today’s market There is a stigma in existence which suggests that in order to sell your home you need to use a real estate agent.  This just isn’t true. The fact is, you’re permitted not only to list your home for sale, but you’re permitted to negotiate its terms, demand the highest offer price possible, and to get the best terms possible for yourself and/or your family. At no point do you NEED a real estate agent even though the vast majority of home buyers have a real estate agent representing them on their side of the transaction, which is an important thing for you to note, you’re not going to be negotiating with a “buyer,” you’re going to be negotiating with a buyer’s agent.  A big difference that we will discuss later in this blog. Let’s Get The Ugly Out Of The Way The majority of For Sale By Owners believe THIS about Buyer’s Agents The road of real estate is a winding and twisting road, one which looks like a straight line from start to finish, but that is far from reality.  Why?  One major factor is the role of a real estate agent when interacting with a For Sale By Owner.  Enter the misconception.   Real estate agents, specifically those who bring a buyer are most likely, if not definitely representing that buyer, and therefore, has the responsibility to look out for the best interests and terms for their buyers.  Here in New York, a buyer’s agent does have to legally disclose this via the Agency Disclosure form to a For Sale By Owner upon first substantive contact, so at least you will know right away that agent’s position. But even with this disclosure in place (and, sadly, during the times when a bad agent fails to disclose this), homeowners tend to believe that the buyer’s agent will handle everything and take the deal to the closing, if just so that the agent will earn a commission, but this is not necessarily the case. For Sale By Owners will put their trust in an agent who represents and protects the buyers specifically.  This is a terrible position for the For Sale By Owner, a position of which a For Sale By Owner should never find themselves in, which will make buyers very, very happy. It is your responsibility as a For Sale By Owner to be prepared to follow the next steps of each part of a real estate transaction without having to refer to a real estate agent.  This is the path you chose and you have to be able to walk it.   You may request the guidance of an attorney.  This attorney will charge for their work but may or may not have the answers or advice that you’re looking for.  The main purpose of an attorney is to protect you legally, they are not oftentimes utilized to negotiate terms or even pricing for you, especially since they will likely be communicating with the buyer’s attorney.  Their conversations will generally be legal conversations. Marketing Your Home To Buyers Despite everything, you have a job to do, and you’re going to do it So now you’ve taken a major step in your life in deciding to list your home for sale!  Very few people decide to do this on their own for a number of reasons, but you’re going to go against the grain and get the job done, By Owner! One of the greatest advantages of having a real estate agent is their marketing expertise and their ability to broadcast your property not only to the greatest number of buyers in the area, but to all of the real estate agents who have buyers in the area. Since you don’t have the luxury of having that capability, it’s now up to you to provide your own marketing and advertising of your home. Here are some tips, tricks, and things to look out for when it comes to broadcasting your own home.  And if you feel that it’s too overwhelming, or, feel as though an agent is the right answer for you, CLICK HERE to check our “Learn More About Selling” page where you can reach out to us and we can help you! Here are some best practices to sell your home: Pay for professional pictures of your home(Do not use your cell phone, that can be detrimental) Create professional flyers for your home(Give these to prospective buyers) Create a professional website for your home(This will give people on social info on your property) Create a compelling description of your home(AI can help with this, but this is important) Make sure your home is completely decluttered(Clutter can literally make or break an offer) Make sure your home’s curb appeal is maximized(It’s the first impression people will get of your home) Post your advertisements on Social Media(Keep an eye, there are lots of “nay-sayers” on there) Post your home on Zillow’s website(Limited to “For Sale By Owner” section only) Have a schedule when you can show your home(Make this as open as possible, not everyone is 9-5) Prepare your home for Open Houses(2 hours is sufficient, anything longer is not good) Have a way to be contacted(Your main cell phone isn’t recommended) These are just a few of the responsibilities you’ll be taking on when advertising your home for sale but if you factor in how much money you can save by doing this yourself, it may all be worth it in the end. The Position Of The Buyer’s Agent The buyer’s agent will be protecting their clients, not you Buyer’s agents have an obligation to their buyers and will show them houses despite whether or not agents list them or are promising any type of commissions. For starters, even after showing your home, the buyer’s agent will still continue to show other homes to their buyers. 

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“Comps” Why Is It Such A Dirty Word In Real Estate?

By The End Of This, You Will Understand How everyday people view “comps” and what it means to them If you’ve ever had any interest in either buying or selling a piece of property, you can bet that the word “comps” has either crossed your mind, or, have been something you automatically think to produce. But let’s take a moment and think about what “comps” are and more importantly, where “comps” came from in the eyes of the general public. Pt 1: “Comps” & “Commissions” The Dynamic Duo Introducing the public to reality real estate TV shows The public is deeply in love with the idea of real estate and the sheer number of real estate reality TV shows reinforces this. With the click of a TV remote, a tap of a phone screen, or a tap of a laptop mouse, anyone can become immediately immersed in the world of real estate reality TV, and this is no surprise to anyone since reality TV shows have been ragingly popular for the better part of 3 decades now, so it does make sense that real estate reality TV should see its success as well. The issues begin when the watchers of these scripted shows begin to believe what they see and hear from within them. In shows like these, the premise is generally the same: – Main Actor(s) are met with a challenging property / buyers / sellers– Main Actor(s) are faced with a difficult related decision they must solve– Main Actor(s) are attempting to uncover a selling / buying price– Main Actor(s) are “in trouble” but use “comps” while poorly defining them– Main Actor(s) miraculously discover a resolution, at the right time!– Main Actor(s) ride(s) off into the sunset with huge commissions Within that recipe of a reality show, the real estate element will almost always call for “Commissions” and “Comps”.  These are the “bread and butter” of real estate reality TV. Rest assured, these “Commissions” and “Comps” are faker than a $3.00 bill. Commissions – Big numbers bring big ratings.  Imagine if you were a real estate show where the commissions or agent income were the national average…no one would tune in to watch the show.  So these numbers are artificially inflated and are scripted to grow viewership. These absurd “commissions” that get flashed on screen are outrageous and are there solely to “wow” an audience and the word “comps” is immediately recognizable as the major staple of the show, and therefore likely the driving factor for many reality show viewers.   Source: National Association of Realtors / NAR.realtor Comps – Is a shortened way of saying “comparables.”  This is another term that is recklessly tossed around in both reality TV and among everyday people.  When attempting to forecast the present (or even future value) of a property, “comps” are the main source used to do so.  The problem is that reality shows have bastardized this word, so much so, that anyone and everyone firmly believes that they are capable of “comp’ing” properties at their discretion. But what does it mean to “comp” a property in actual real estate terms? Veteran Licensed Real Estate Professional Charles Bianco produces comps in the form of a 15-20 page report that fully details the true value of a subject property.  This report will include, for example, sold properties within the last 6 months that match the subject in terms of interior and exterior square footage, amenities, upgrades, condition, utilities, geographic location and range, schools, equal number of bedrooms and bathrooms, property type (according to building codes) and more. You’ll notice that what he does not cover “what the neighbor listed for” or “what the guy around the block is selling for”, these are not comparables and they are not valid.  We feel bad for the most are licensed bank appraisers.  They are the ones who are being “stepped on” whenever an ordinary homeowner (or unlicensed individual otherwise) feels that they can “comp” their property or a property of interest.   Pt 2: So Then Who Does The Public Turn To? A hero had emerged, or so people had thought… There is an obvious need for information when it comes to real estate, especially since we’re focusing on what may be the largest transaction of many people’s lives…how could there be so few “reliable” resources and choices for people in this area? Since the internet came into existence, there has always been any number of websites touting themselves as the “go-to” website for real estate.  Many have come and gone, but one has always stood out the most, Zillow. Zillow has proven itself to be the #1 real estate information website in the United States and with tremendous financial backing, their having gone public on the stock market, and thousands upon thousands of real estate agents who pay monthly to be a part of the website, it’s no wonder that Zillow has such a hold on the real estate consumer public.  With that said, it’s also no wonder that the real estate consumer public holds their information as the gold standard, if only because whatever source would be considered second place, is a very, very, very distant second place by comparison. This does not mean that Zillow is without its flaws, however. In February of 2006, Zillow introduced the “Zestimate” to the public.  Zillow defines its “Zestimate”in the following way: “…A Zestimate incorporates public, MLS and user-submitted data into Zillow’s proprietary formula, also taking into account home facts, location and market trends. It is not an appraisal and can’t be used in place of an appraisal.” Sounds great, until you realize that the Zestimate does not accurately value a home on actual comparable parameters, it only values properties based on information which is subject to error and its own internal algorhythms. As a result?  Zillow admits that its “Zestimate” and the information they provide is subject to error, and those errors can be significant. Source: Zillow.com | Zestimate Accuracy Stats The above chart was taken

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Maximize Your Selling Price With These 3 Quick Tips

The Best Tips For Homesellers Getting top dollar for your home is definitely a driving factor of selling While there may be any number of different reasons a person may decide to list their home for sale, you can rest assured that its selling price is definitely among one of the most important reasons for a sale. After speaking with what feels like a countless number of homeowners, the consensus between them is that none of them want to “give their home away” and at the very least want “fair market value” for their home. In this post, we will focus on helping make sure you know the right steps to getting the maximum “SOLD!” price for your home. Quick Tip 1: Preparation You must make sure your home is “First Date Ready.” A commonly overlooked (or oftentimes underestimated) element of home selling is making sure it’s “First Date Ready.” When you decide it’s time to list your home, you have to be sure that both the exterior and interior are ready for the task. In my 12+ years of experience in real estate, there have been countless times where a homeowner would, at some point during the initial conversation, refer to how it may currently be a market that favors sellers, and in doing so basically insinuating that they can forego some elements which may feel “basic” such as cleaning or curb appeal. DO NOT FALL INTO THIS TRAP! While it may be true that a seller’s market can produce offers on your home regardless of its condition, the truth is, that people are emotional and visual.  If 10 people visit your home, and you do nothing to prepare it properly, instead of getting 7 offers, you may only get 4 or 5.  This means that the remaining 2 or 3 offers you would have gotten could have been higher and better than what you received, or, worse yet, you may get 1 or 2 offers, and those offers may be less than you’re hoping.  Yes, it can be like that. A great way to test if your home is “First Date Ready” is to invite an impartial neighbor or acquaintance over to view your home and give feedback.  You’ll be surprised what you’ll learn this way! Another is to do the obvious; hire a landscaper to improve the curb appeal, hire a cleaning company to deep clean your home, go out to a big box home improvement store and purchase some paint or some door knobs, etc., to fix and update easily fixable and updateable things. Quick Tip 2: The Right Agent “3% of all agents do 100% of all the real estate business” There’s no shortage of real estate agents out there and there certainly aren’t any who will volunteer that they’ve never sold a single home before in their career and have no idea what they’re doing. The fact is, getting a real estate license is very easy to do and requires little education.  The “school” that people go to when becoming a real estate agent simply teaches real estate law and does not teach any element of the real estate process, or even how to treat a customer or client. The right real estate agent is difficult to find, but the wrong real estate agent is very easy to run into, and worse yet, to work with. Some signs of a “good” real estate agent: They have at least 5 years of experience They have at least 40 completed sales on record They have a bonafide marketing plan They specifically mention what they will avoid doing for you They specifically mention what they will do for you They have a list of industry professionals to share They have a great-looking website with great info They are dressed professionally and act professionally They are confident and have answers quickly They have great public ratings and reviews They can accurately research property taxes They can demonstrate clearly how to financially qualify a buyer You’d be surprised to hear that there are only a handful of agents who can provide those 12 signs of a “good” real estate agent.  To make sure you’re dealing with a good agent, secretly interject these points into an interview with that person.  See how many of those 12 points that person “checks off.” On the flip side, a “bad” real estate agent will miss the mark on several if not many of those points.  For each of the 12 points that are missed, it may cost you thousands of dollars in profit. Charles Bianco, owner, REALTOR® and Mortgage Officer of YourHomeYourTerms.com can easily provide those 12 points and then some, if you’re in search for an amazing agent. Quick Tip 3: Maximum Exposure So your home is ready, you’ve done all the prep work and cleaned, decluttered, did some minor repairs and updates, you’ve then went and hired the right agent who has great experience, marketing, and is a rock-solid choice to represent your needs and wants, what’s left? Maximizing your home’s exposure to buyers!  This is an absolutely important element of getting the most money for your home; you can have the most wonderful home in the world, but if only a few people learn about it, they won’t compete for it and you’ll be staring down the barrel of selling at a discount whereas other homeowners are consistently getting over asking price for their homes. Maximizing your home’s exposure is only made most effective when you’ve followed quick tips 1 and 2, however. A “First Date Ready” home that is marketed by an experienced and successful real estate agent is a recipe for big-money success! Your beautifully ready home being broadcasted by your experienced and successful real estate agent via the MLS, Zillow, Trulia, Google, Paper Marketing, Digital Pay-For Marketing, etc., will put your property, in its most beautiful light, in front of the largest group of ready and able buyers…it’s a perfect-case maximum SOLD price scenario! The group

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For Sale By Owner: The 5 Steps To Selling Success!

Step One:The Starting Line It all starts at the beginning, a strong start will mean everything. It can’t be stressed enough: Make Sure You’re Ready To Sell Your Home! Having your plan(s) up to date and ready is one of the most significant aspects of home selling. Usually, an agent will help you with the logistics of your next move, locating many new on-market and/or off-market listings, office-exclusive listings, access to homes/rentals across the country, etc.  Since you won’t have access to that, you can rely on Zillow, Trulia, etc. You will need a place to move to once your home is sold, and buyers may not be able to wait extended periods for an unrepresented home seller to secure their next place, especially since the buyers know you’re doing it alone. If you struggle with this, it could be an excellent time to speak with a YourHomeYourTerms.com agent. Step Two:Preparing Your Home Preparation is not only key, it’s the master key to selling. One great way to prepare your home for sale is to use the homes around you as an example.  For instance, you can check Zillow for homes in your area and see how they are staged and photographed.   You’ll notice a variety of “styles.”  Some homes are meticulously staged with beautiful photographs; this is important since all buyers will look at images provided of a home for sale before making an appointment. You may also see some homes that look poorly photographed, staged, and cluttered.  These homes are not your competition, even if they match your home in every way.  Why are they not your competition?  Because humans are visual.  If you stage and photograph your home better than others like yours, your home will enjoy a positive benefit, which will far increase the likelihood of your getting top-dollar offers.  Make sure your home always smells nice and fresh.  Avoid using “cover-ups” to mask odors.  Open windows and do a cleaning.  Remember, we’re dealing with human beings, and they will judge.   Check the exterior of your home and make sure the “curb appeal” is maximized.  If you have to pay for a landscaper, do it.   YourHomeYourTerms.com agents have access to a massive list of professional resources that can be shared with you for your benefit, including attorneys, landscapers, plumbers, and handypeople.   Step Three:Showing & Promoting Now it’s “Go Time!” Listing your home on the market and looking for results This is it! The moment of truth: You’re listing your home for sale publicly! It’s an exciting time that can benefit you and your bank account. SHOWING YOUR HOME: Have a system in place to organize times and days for buyers to come visit and tour your home.  Have a set of times for each day of the week that would be convenient for buyers, such as “6pm-8:30pm Mon-Fri” and have weekends be open and flexible.  Remember, buyers work too and they can’t always make it during normal business hours. Make sure that you’ve got plenty of flyers handy for buyers who come visit your home.  Additionally, you will want to plan a “tour route,” which should begin at the front of the house and take them through to the back of the house and through the backyard.  Ideally, the buyers should leave through the backyard, but always ask if they would like to re-enter to view any of the property one more time.  If they do, that’s a good sign. You also want to make sure that the home looks the same in person as it does in the pictures you took.  No one likes being “deceived” by pictures, so if the house looks neat in pictures, then make sure it is when you show it. PROMOTING YOUR HOME: An Attractive Lawn SignFlyers Of Your HomeFlyers For Nearby BusinessesA Website Of Your HomeA Business Social Media Account Of Your HomeA Method To OrganizeAn Open House Sign-In SheetA Separate Phone Number For Buyer Inquiries/CallsList Your Home On Zillow Do not “cheap out” on these and do not cut any corners.  Competing homes around yours have professional agents working for them, so when a buyer visits your home for sale you will need to make sure yours looks as polished and prepared as the professional agents do. Unfortunately, Zillow reserves “For Sale By Owners” to what feels like the “rear” of their website, pushing agent-listed homes to the front of the website. This can come at a significant disadvantage to homeowners, so you must utilize your social media accounts through local group pages and pay-for advertising by creating a business page of your home as your bread and butter for marketing your home digitally. CLICK THIS LINK HERE TO SEE WHAT WE DO TO PROMOTE THE HOMES WE LIST FOR SALE. FEEL FREE TO COPY THESE IDEAS FOR YOURSELF. Step Four:Representing Yourself This is where you prepare to negotiate with buyers and/or agents So you’re now doing everything you can to promote your home without the assistance of a trained professional, and things are seemingly going well.  You’ve got a lot of attention on your home, your phone is set to ring, your advertising is set and ready to go. SELLING YOUR HOME: Having an additional “throwaway phone number” is a good idea since you’ll be getting a lot of calls from people you don’t know, so invest in a prepaid cell phone for your protection.   Let’s say you find a buyer who is interested in your home.  You’ll want to interact with this person and see if they’re financially capable of buying.  This is done via the Pre-Approval letter.  A pre-approval letter does not guarantee a bank mortgage to a buyer, instead, it indicates to the bank that the buyer may be financially capable of being approved for a mortgage.  When you receive a pre-approval, take some time to call the mortgage officer and ask questions about the pre-approval including what that person has done to review the finances of the buyer. When negotiating a price,

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