The term FSBO stands for For Sale By Owner, and it's one of the options for home sellers who may be on a budget. Instead of securing the services of a real estate agent, the seller does the work themselves and saves the cost of commission. However, sellers may not be considering the many potential pitfalls of home selling as they may not realize just how specialized and detailed the work a real estate really is. From legal ramifications to financial mistakes, see why sellers usually regret taking the task of seeling their own home on themselves.
Home Pricing Is Difficult
There are some websites that show the average cost of a home in a neighborhood and possibly the recent home sales on a homeowner's particular block. However, there are potential drawbacks to a home owner trying to do their own website research. Many websites may not be displaying current information, Or the information they show may be misleading.
For example, each home sale is specific to the buyers and sellers in the transaction, determined by anything from the condition of the home to the specific contingencies listed in the purchase offer. These facts are not shown on a website, though they might be available to a real estate agent. Agents have the accurate selling information for nearby homes that a potential FSBO seller may not.
And pricing a home correctly from the start is critical for an eventual home sale. Set a price too high and sellers may turn buyers off immediately. Set the price too low, and buyers may think the...
The escrow period is an exciting and stressful time during the home buying and selling process. Home buyers who understand the escrow period and know what to expect while it's happening may find the escrow process to be less stressful.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
What Is the Escrow Period?
The escrow period is the period of time that occurs after the home selling contract is signed, before the house transfers ownership. The escrow period begins when the home buyer writes a check for a deposit on the house. This check is referred to as earnest money.
During this time, earnest money is usually protected by an independent third party business, either a title company or an escrow company. Sometimes, the escrow and title companies perform the same functions. Escrow companies act as the stewards of the earnest money. Escrow companies also manage the documents required to purchase the home.
The escrow period usually lasts from 30-60 days. During the escrow period, the home sellers pack their belongings to move out, and work with their real estate agent to ensure that the sale of the home goes smoothly. They may also accommodate the buyers, through their own real estate agent, when they need access to the home. Buyers are also usually very busy during the escrow period....
Some home buyers are finding themselves facing stiff competition when it comes to finding and closing on a home in areas with few properties available. Hot real estate areas such as those in Seattle or some cities in California, can see homes have multiple offers the day the home goes on the market. In many cases, the home actually goes for over the asking price.
Even in cities like Phoenix and Dallas, homes in certain areas and in certain price ranges, may quickly receive several offers once put on the market. In worse cases, a prospective buyer may find that a seller may have as many as 10 buyer offers on the table when they initially list a home. How can potential buyers hope to compete with other buyers in a multiple offer situation?
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
Perform Research
Home buyers need to know the community where they will be searching and what they desire in a new home. Get an overview of current property values with beginning asking prices and whether homes generally sell at above or below asking prices. Begin your research...
