For Sale By Owner...Really?

A few years ago, a fellow Realtor® bought a new car and instead of trading in her old car, she decided she would sell it herself. After all, she was a professional salesperson, how hard could it be? And, she could make more money that way...

Well, she went to the hardware store and bought the little "red and black" signs that would tell the world that her car is "for sale". She called the newspaper and placed the ads - of course she paid extra for the heavy borders, "New Listing" headings, and bold type. She put her phone number on the signs and taped them to her car windows. In 2010, she would have surely put an ad on Craig's List.

She was ready to pocket her pending financial windfall. After all, why should the dealer make all that extra money anyway. Anyone can sell a car and she knew that car better than anyone. Right?

If you have ever tried to sell a used car, you know what followed. Her life became selling that car. She soon was talking to everyone who ever thought they might want a car like hers (and many who just needed to be entertained). Most of the calls were from nice folks. But, those little signs and those bold ads do produce, they are like magnets in the world of crazy. There really are "tire kickers" out there, people who will look at and test drive lots of cars but seldom buy.

Some of the "not so nice" folks felt it was their obligation to see the car, drive the car, point out every flaw, educate her on the "current market", and basically tell her that she was crazy (a point she soon began to agree was right.) For some reason a few felt that they needed to point out to her that they had CASH! Somehow they felt that their cash was better than the dollars another person could bring from their bank or credit union. Therefore, she should take less because they had CASH.

Soon, she began to hate that car and wished she had left it with the dealer when she had the chance. Then in reflection one day the Realtor® in her came out, and she asked, "Why would anyone ever try to sell their own home?"

Selling your own home is much like selling a car, but with a lot more at stake. You do open your life to the world. The process can consume your life, because your are emotionally invested in your home. And, you have basically taken on a new full-time job. The longer the process takes, the more desperation sets in and the less firm you become in your resolve. And you begin to wonder about the safety of your family and yourself as you continue to allow strangers into your home and your life. You also realize some of these "buyers" are almost professional at negotiating. Also, everyone wants a good deal for themselves - not you.

Good Realtors® know how to deal with the different aspects of society, that is what we do everyday. We work to know the people we bring into your home. If we are smart, we only bring you qualified buyers, we don't introduce "tire kickers" into your home and your life. We recognize these characters and we don't waste your time or ours.

Our goal should always be to serve you, allow you to continue to live your life, and help you achieve a happy sale of your home. We are the buffer between you and them. We negotiate for a living and we do it on your behalf. We know what your home is really worth and we tell you, plus we tell the buyer when he wants to "steal" your equity.

If you are considering selling your home as a do-it-yourself project, all I can say is "For Sale by Owner...Really?"

I am in the market full-time, everyday, if you want to talk further then just contact me. Or, just give me a call at (423) 847-8001, just ask for Raymond.

It's Spring. Do you have a yard to play in?

Spring is finally here. We can get outside again and enjoy the flowers, the sound of birds, and we can spend time in our yard. I know, by June, that will be more like work, but right now it is an enjoyable way to relax for most folks. Unless, you don't have a yard.

The yard is a very important feature to home buyers when they begin the home search process. Families that have children place the importance of the yard on a level almost equal to the number of bedrooms, or the schools they wish to attend. However, most buyers can only describe what they are looking for as "Well we would like a fairly level lot" or "We'll know it when we see it."

If you are going to be buying soon, you should start really thinking seriously about the features you would enjoy in the new yard.

• If you are a minimalist, wanting only to cut the grass and sit on the deck, then you probably don't want to buy a home that has been owned by a master gardener. You are probably more of a candidate for a fairly level "postage stamp" lot.


• However, if you are the master gardener, then you probably need no landscape advice, but you do need to be thinking about how you will want to use your new yard and how it should lay. Every gardner does not want a level yard. Do you want a landscaped yard that you can maintain, or do you want to start from scratch?


• How big do you want the new yard to be? If you want a large lot, tell your agent so you don't waste your time looking at homes on a quarter acre lot.


• If you want acreage with your new home - the really big yard, then you need to think about how you will use the land. If you want to mow 2-5 acres or you need pasture land, you don't want mountain acreage. However, if you want woods around (so you can become a hermit), then a level tract of land is not as important, in fact some steep grades might better serve your privacy purposes.


• If you want a home with a water feature, do you have the time needed for proper upkeep of the plants, fish, etc.? Are you willing to spend the money needed to maintain the function and beauty of the feature?


• If you really want an in-ground pool in the future, you need to evaluate the yard as to how well suited the space is for a pool. Will it cost a lot of money to level the lot, build retaining walls, move septic tanks or sewer lines? Just because there is a "good spot" for a pool, doesn't mean it will be easy to install. You might consider having a pool contractor do an evaluation of the property before you buy (or make his evaluation a contingency in your offer.) This is not a job for your home inspector!


• If you need a fenced backyard, don't limit yourself to only houses with fences. The right home for you may require that you add the fence. Make the fence "a plus" if it is already there and usuable, but don't eliminate the right house because there is no fence yet.


• Trees should be evaluated carefully. Mature trees are valuable for their shade and beauty. However, a tree in the wrong place, such as too close to the house, can be very expensive to remove. A diseased tree is costly to treat, prune, or remove. A professional opinion in advance may save you money and heartache later. Again, this is not a job for your home inspector.


• When you find a possible new home, consider carefully the drainage around the foundation of the structure. Water is the number one enemy of a home. The grade of the lot, landscaping, gutters and even soil absorbency all play a part in keeping water from entering the structure. Water needs to always drain away from the house, never allow water to drain against the foundation or run down the siding. Pay attention to the flow of water around the house, before it becomes your house.

Make your new home more enjoyable by considering the yard before you own the yard. There is an old saying "If money can fix it, it is not a problem" but most new homeowners don't have the extra money to fix something they could have avoided with a careful evaluation before making the offer. A top notch Realtor® can help you successfully negotiate a purchase that gets you into the right home, addresses all your concerns, including professional inspections, which allows you to enjoy the new home and the new yard for many years.

Your comments are always welcome, so if you have a success (or horror) story you want to share with others, please feel free to enter your comments and read those of others who have responded to this blog. I will respond to your questions and comments.

When you are ready to start looking, my experienced team of Realtors® is ready to WOW you with service that is second to no one... you can start here: UpwardRealty.com.

© 2008 UpwardRealty.com

Market Report - Time to buy!

If you have been waiting for the "bottom of the buyer's market" so you could get the best deal, you may be limiting the future success of your investment. Right now, real estate prices are the lowest they have been in years and we may already be at the bottom of this current cycle.

"Timing is everything" is one of those old sayings we live by, but recognizing the right time to buy is not an easy task. If you are waiting to buy a home for your family, waiting means continuing to pay rent, rent which pays you no return. The sooner you buy, the sooner you begin to build equity.

Today's mortgage interest rates are very low, too low to dismiss. You must give consideration to buying while the current rates are available. Think about this on a $150,000 mortgage at 6.5% you will pay $948 per month for principal and interest. If you wait, hoping to save $5000 and get the same house with a $145,000 mortgage you might be successful. However, if the interest rate goes to 7% (a 1/2% increase) while you are waiting, your payment will be $966 on the same 30 year mortgage. You saved $5000 up front, but have a higher house payment? You will be paying $18 more per month, that comes to $6480 additional over the life of the loan. Maybe not too big a gamble, but...

Another consideration is that if now is the bottom of the market and you have to pay $5000 more for that house later and the interest rate is 7%, your costs will be a lot higher. A $155,000 mortgage at 7% has a monthly payment of $1032.30 or $84.30 per month more than our first example. That is $30,348 more you would pay over the life of a 30 year loan. I can think of a lot I could do with an extra $30,000 - can't you?

If you want to know the facts and "just the facts" about the housing market? Here is a link that you might enjoy. This site is sponsored by the National Association of Realtors®: http://www.housingmarketfacts.com/. Enjoy your visit there, but don't forget to return to this blog and read more articles written over the last few months about the current market.

When you are ready, my team of professional Realtors® would love to help you find your next home. If that means helping you sell a current home, we can help with that as well. You can find out all about us at UpwardRealty.com.

Copyright 2008

Enough With the Gloom and Doom!

Do news reporters truly enjoy delivering only bad news? If you have listened to either the local or national news outlets recently, you probably think buying or owning a home is the worst thing you can consider. Regardless of the facts, the press is continuously telling us how the bottom is just falling out of our economy and buying a home now is just stupid.

Well, that ain't so! Most of the so called "experts" are not real estate experts. I have watched investment shows while four experts discuss which stocks they think are right to buy. All four have their favorites and each gives good reasons why the other three experts are really idiots. Then after 10 minutes of this, the moderator will ask them about real estate. All four will give the same response - it is a bad time to buy, prices will continue to drop, it is just bad-bad-bad! This is the only thing these "experts" have agreed on the whole time they have been on the program. However, when they were introduced, there was nothing said about them having any real estate experience - they all work for business magazines, websites, or stock brokerages. They all have an agenda - get your money out of real estate and into the stock they sell.

However, everyone keeps telling us it is a "buyer's market". Doesn't that mean it is a GOOD time to buy? Actually it does! Right now, because of the relentless bad press on real estate, prices have dropped. They have not dropped by double-digit amounts as the press whould lead to you think, but in most markets prices today are 3-5% below the level of a year ago. However, prices have actually gone up in some areas this year. Also, most home owners are not in a "have to" sell situation, so they will not make drastic price cuts, even with the "I'm going to steal a house" mentality many buyers now have.

If you are buying, expect to get a fair price, but not to steal a house. Sellers will just wait you out. Right now, you can buy a house at a reasonable price, but if you wait another year, you may be paying 8-10% or more to buy that same house. That's OK, the sellers are willing to wait.

How about interest rates on mortgages. The press has not been telling you that rates are really low. You can find 30 year fixed rate mortgages at around 6%, give or take a quarter. For 15 year terms, fixed rates are below 6%. Folks, those are LOW rates! Does anyone remember the early 80's - back then 15-18% was common and people went nuts when the rates dropped to the 11-13% range.

Regardless of what the press says, the economy is good right now. Interest rates are low, unemployment figures are low, the economic reports show the economy growing, and if not for rising gas prices we would say the economy is booming.

It is a good time to buy real estate, before the prices and interest rates begin to go back up. And you know they will.

http://www.upwardrealty.com/

Copyright 2007

Finding the RIGHT Realtor®? Seller's version.

Chattanooga/Hixson, Tennessee

You invested well...you took care of your home...you paid your mortgage...you now need to sell. What should you look for in the Realtor® you select to get the most for your hard work? How can you realize the most dollars from your equity?

Here are some things owners should consider when searching for a Realtor®:

1. They must be full-time in the business. Only a full-time agent can be available anytime a prospective buyer calls. Buyers can be fickle, meaning if they are asked to wait, they find another option. That might mean buying another house, not yours.

2. They must have experience. This is the person that will negotiate on your behalf to make sure you get the maximum price. Experience is extremely valuable when pricing your home, only a Realtor® with market knowledge can sort out the important information from superficial information. Your agent's experience is of vital IMPORTANCE to you!

3. They must have contacts within the business. Your Realtor® will be the one person that makes sure your home is exposed to the other professionals in your market. Your Realtor® will work to resolve all inspections, appraisals, title questions and problems to get you to the closing table. It really is who you know. No closing, no equity check.

4. They must be a REALTOR® - all real estate agents are not Realtors®. However, all Realtors® are trained and tested on the Code of Ethics as part of their membership in the National Association of Realtors®. Realtors® are voluntarily held to higher standards. Realtors® take public service seriously. Ask the questions and look for the "R".

5. They must belong to the MLS service in your area. This connection is vital for maximum buyer exposure. Agents who are not MLS members forfeit the #1 marketing tool in the real estate business today. Don't ever consider trying to sell real estate without MLS access by your Realtor®.

6. They must care about you. If you interview a Realtor® that doesn't listen to what you say, they may not share your priorities. Most agents do truly care about you, but you can tell when you find one who only cares about the commission. Trust your instincts. This is your advocate in the sale of your home, you must feel they are on your team.

7. They must be trustworthy. This means they shoot straight with you, even if it means giving you advice you don't want to hear. Selling your home is a stressful process and you want to know what is happening, you need your Realtors® counsel every step of the way. You need to know what the market is doing and how it is reacting to your home. If your Realtor's® story seems to keep changing, you probably selected the wrong agent.

8. They must represent you. Having representation means your Realtor® is working on your behalf and for your best interest. The listing agreement will establish your agency relationship with your agent. Make sure you understand how you will be represented in different options. Tennessee law allows different options, but how you will be represented must be in writing.

While this may appear to be a simplified list, these recommendations can lay a solid foundation for a successful home sale. Attention to these basics should mean you avoid the heartaches and headaches of dealing with the wrong agent.


In the Chattanooga area, my team at UpwardRealty.com would love to show you how selecting the right Realtor® can make your next move far less stressful.

The wrong agent, no matter how good the sales pitch, can become your worst nightmare.

We serve Southeast Tennessee and North Georgia.

Copyright 2007