Margaret Avery-Moon

Selling your home on your own is sometimes a good choice. Why would a Realtor be telling you that? Well, first of all, I wasn't always a Realtor and I did sell and buy a couple of my homes many years prior to obtaiing my Real Estate license. It was a good choice for me at the time because these homes were every inexpensive homes, I was experienced in Real Estate and understood Real Estate legal issues, and there was a huge market for the home I was selling. However, I must tell you that one of the deals cost me a lot of time and energy, phone calls, and follow-up with the loan officers, and there were several points during the course of time that the deal could have fallen apart. There was a lot of coordination to do and I lost income to complete the process. And, knowing what I know now....well I was lucky as the legal aspects regarding the loan process could have been a disaster. I just happened up a highly skilled lender who assisted both parties. Whew, So, before you just stick that sign out there, do a lot of homework. Budget a significant amount of time each week devoted to selling your home.

1. Figure out your target audience. Who is likely to buy your home? What is their income? Where do they work?

2. Obtain marketing reports, check out sold comparable homes not only in your neighborhood but neighbors like it. Price your home aggressively and be willing to pay a coop fee to Realtors.

3. Get a home inspection and make repairs or get estimates so you can share that with potential buyers.

4. State everything you know about the home in writing. Disclose all of your experiences. Have this available to potential buyers.

5. Make sure you understand all of the rules about Fair Housing and any additional rules you are subject to within your community, state, and neighborhood.

6. Pull recent copies of your easements, zoning requirements, plat map and CC&Rs and any other property information relevant to ownership. If you have home owner association fees, find out the transfer fees and contact the management company and president to assure you know what the process will be.

7. Do a preliminary title search on your home and remove any leins that are not supposed to be there. If you have a mortgage, find out your pay off. Check out your current annual property taxes and any assessments.

5. Fully prep your home. Box up your clutter. Get rid of furniture that is old, torn or faded. Place any valuables in a vault. Keep your home spotless. Paint where it needs paint. Wash the windows. Take off the screens. Keep the litter box clean. And, don't put everything in the garage. Your garage should have very few things in there other than cars. You want your home to look spacious.

5. Create a marketing budget.

6. Create a time frame. How long do you want your home to sit on the market? The longer it sits, the more stressful it is for you. Drop the price of your home a percentage for every month it does not sell or you do not get calls. Everything will sell at the right price point.

7. Create a calendar of events to expose your home through open houses, media, craigslist, meeting announcements etc. Create feedback forms so you can get honest feedback from potential buyers.

8. Investigate the many brokerages that offer placing your home on MLS for a substantial fee. Having your home on MLS wihile important, it is just one of the many ways to expose your home. MLS doesn't sell homes. These brokerages are not all the same and most of them do not offer a service other than exposing your lisiting on MLS.

9. If your home will be visited by Realtors while you are not home, make sure you have a process to store a key safely. You also want the Realtors name and license number. Make sure only qualified people are entering your home while you are away.

10. If you are not a fantastic photographer, hire one to take your photos. This matters.

10. Create colorful glossy photos and make flyers. Post your flyers at all the places you frequent such as the grocery store, your fitness club, the place you work, etc. Make frequent announcements at clubs that you belong to. Getting the word out there is important.

11. Research which media venues are most stuited to meeting your clients. These venues are costly so be careful. Check out websites that will be useful for you. All advertisement will need photos.

12. Find a recommended escrow officer and a Real Estate attorney.

11. Once you get an offer. Make sure that everything is legal. Hire a real estate attorney to assist you wiith the offer. Make sure the buyer is qualified to get the loan or if it is a cash deal, get a letter from the bank indicating that funds are available and get copies of bank statements. Verify employment.

12. Before accepting the offer, research all the expenses you may be subject to paying before closing. You may have to pay Owners Title insurance, VA costs, escrow fees, etc. You need to know your bottom line before it sells.

The above is just a brief outline. There are other complications that are likely to come up. It is a time consuming process. Not using a Realtor may cost you more in advertisement, lawyer fees, and LOT more should you be sued in the process by overlooking a legal issue. BE CAREFUL. The above isn't meant to be advice or enough information to secure a successful sale. It is just a starter. I wish you the best. I know in these times, some people just don't have enough equity to go through a Realtor. However, if you must sell your home on your own, make sure you have someone advising you like an attorney and figure out your costs in advance. You may find that hiring a Realtor is cheaper and safer in the long run.

What do you Know about Buying a Home?

Take the Quiz

True or False

Place a T or F after each statement

Calling the listing agent on a home you are interested in will likely bring you the best price because the listing agent can cut a better deal by cutting his or her commission.

FALSE: The listing agent may or my not be willing OR even be able to drop the commission. There is a binding contract between the listing agent and the Seller. Commissions are variable. There are no ordinary percentages. Any savings on the commission will benefit the Seller and is not intended to benefit the Buyer. Additionally, the listing agent is representing the Seller's interest and not the Buyer. This type of transaction is not only a dual role with the Broker but also with the agent. While an agent may be fair in a transaction and able to carefully help the buyer make an offer, this isn't the best representation for Buyer. But more importantly, representation with a qualified REALTOR ® will save the Buyer money. A buyer who isn't involved in Real Estate transactions in their daily life are not going to think of how to have the Seller pay for costs, repairs, carpet cleaning, home protection plan and a number of other negotiable items that saves the Buyer more than a cut in commission ever can. So, don't call the listing agent because you think it will save you money. Spend time developing a relationship with an agent by interviewing him or her and then move forward on your search for a home.

The best way to figure out the value of a house is by looking at the square footage and comparing the price per square foot of the subject home with other homes for sale or sold in the same area.

FALSE: Some appraisers don't even consider the price per square foot! The number of bathrooms, bedrooms, sinks in the kitchen, and the type of materials used to build the house and location are other considerations. Rooms without a purpose to the buyer are seen as wasteful places to cool, heat, and clean. The most important criterion is location! It is the dirt that brings up value on a home and contributes to potential appreciation. Obviously, a larger home will cost more than a smaller home but square footage is only a role in figuring out the value. If in doubt, get the home appraised.

When the median price range of houses goes up or down a percent, you can use this same percentage rate to adjust the value of your current home.

FALSE: The median price represents the price of the home sold with the same number of houses selling above that price as below. The key here is the same number of houses. The medium price changes monthly and annually. A price drop of 8% on the median price does not mean your house has dropped equally. In fact, some homes can actually appreciate in a down market. This statistic gets used by the media in a way that can be very misleading to home owners. It is an important statistic when looking for a home. The median price is likely to be the most aggressive price and the price range which is selling within a short time frame. However, if you want to know the value of your home, contact a REALTOR who can run some statistics more appropriately related to the location of your home.

Gated communities are designed to provide additional security so you are less likely to be burglarized.

FALSE: Don't let this false sense of security be a determining factor in the selection of a home. Gated communities are gated because the streets are privately maintained. More traffic on streets will increase the maintenance fees to the home owners. While in some cases there are security guards and fences surrounding the community to deter crime, in general, it is the private streets, not the people, which are being protected.

If your REALTOR ® hears information about a murder committed in a home you are interested in purchasing, by law, he or she can't disclose this information.

FALSE: Your REALTOR® should disclose any material fact he or she knows about the property you are interested in that will assist you in making a decision. Sellers however are not required to disclose information on Sex Offenders. There are websites and reports on crime that will help you make a decision on the suitability of the neighborhood. Use your REALTOR ® as a resource to help you locate this type of information.

Polybutylene Plumbing is only a problem on houses built between 1978 and 1995. Homes built after 1995 did not use Polybutylene.

TRUE and FALSE: It is true that Polybutylene was frequently used on homes built between 1978 and 1995 in Tucson. However, it wasn't outlawed. Your home inspector will check the plumbing on a home of any age. If in doubt, have a plumber inspect your plmbing.

Check out this web site: Polybutylenehttp://www.polybutylene.com/poly.html

The best place to find the accurate square footage of a home is through the County Assessor's office.

FALSE: On an average, the county can be off as much as 200 SF. This can be due to non-recorded additions or inexact measurements. A buyer needs to verify square footage. Generally, the appraiser will measure the home. Make sure the measurements are done correctly. It is easy for someone to measure the outside structure and forget to subtract for a small indentation of a patio.

It is best to avoid buying a home with required Home Owners Association dues.

FALSE: There are many reasons why associations are formed. They can help maintain the curb appeal of a neighborhood or allow for owners to share the cost of a road. You are limiting your search if you are insistent about not looking at homes with HOA dues. The dues can be from below $100 to thousands of dollars per year. You need to inspect the association's bylaws and rules and make sure you understand them before buying. You can do this during the inspection period. Talk to neighbors about the HOA. Look at the history of dues increases. If you are considering any additions or remodeling jobs on the subject property you need to check with the President of the association to determine if you can do what you want to do.

If a Seller is selling his or home in "As Is" condition, the buyer is subject to buying the home without the seller disclosing any information on the home. The buyer may do an inspection but the buyer will still have to purchase the home so it is wise to do the inspection before making an offer.

FALSE: The "AS IS" home owner still has to disclose. The buyer should still do a home inspection during the inspection period. And, don't waste your money doing an inspection without an acceptable offer. After the inspection is completed, the buyer can re-negotiate or walk away.

Now let's check some other knowledge: Multiple Choices. Circle all that apply.

Lead-based Paint

a) Lead-based paint is found in houses built prior to 1978.

b) Lead-based paint is especially hazardous to children who chew on items painted with lead-based paint.

c) Lead-based paint is not hazardous for adults.

d) A buyer or renter must be provided a copy of the EPA approved pamphlet prior to occupying the premises of a home built prior to 1978.

All are correct. If you tear down a wall, you will be exposed to layers of paint used over the years and you may swallow particles or breath them in. Wear a mask.

Environmental Hazards

a) A seller must disclose any known environmental hazards.

b) Being in airport vicinity is considered an environmental hazard.

c) Asbestos, lead-based paint, endangered species, the presence of mold, allergens are all considered an environmental hazard.

d) Water quality may only be tested if the home is on well-water.

All are correct. You can check the quality of water on any home.

Pool Safety

a) Arizona Law applies to homes with both a child under 6 years of age and a pool built after June 1, 1991.

b) All pools must have a barrier to keep out uninvited neighbors.

c) There aren't any laws for above ground pools.

d) A house with an enclosed backyard with self-closing and self-latching gates or secured with a padlock will suffice as a barrier around a pool.

A, B, are correct. There are laws for above ground pools. A pool is defined as any body of water 18 inches in depth, wider than 8 feet and intended for swimming. The backyard fence may not be enough. The fenced backyard is a barrier but the pool may still need an enclosure.

Negotiation

a) Your Realtor will tell you what to offer on any home after he or she checks the comps.

b) Your Realtor is a resource and will supply you with information for you to make an offer.

c) Once you make an offer and it is accepted, you are stuck with it. So, be careful.

d) Your Realtor owes confidentiality, honesty and respect to all parties involved.

b is the only one that is true. Your Realtor will supply you with lots of information to help you make an offer. He or she should go way beyond just comps and include marketing reports, and information on the condition of homes sold and still more. When you make an offer, it is based on what your visual inspection. You may find out during your inspection period that there are some serious expensive issues that need to be addressed. The seller may wish to lower the price rather than fix the items. Your Realtor owes you confidentialty, honesty and respect. The other parties are considered customers and your Realtor owes them honesty and respect but not confidentiality.

I want to share this experience. A retired couple for a home stopped by my open house last weekend. I first met them at an open house a couple of weeks ago at a location about 25 miles from this one. I asked them how they were doing their search for a new home. They said they are looking at MLS every day and visiting open houses. I asked if they were working with a REALTOR and they said no. They don't plan to as they will buy their home through the listing agent who will represent both sides and that way they will save themselves 3%. The 3% that normally goes to the buyer's broker will go to them. I informed them that ti didn't really work that way. They insisted that this was the way it worked. When I first met them at a former open house, I invited them for a free consultation on buying in Arizona with no obligation to work with me. They are from out of state. Many people think the way this couple does. This couple is spending an enormous amount of time driving around and the only way they are seeing the inside of a home is through an open house. Potential Buyers everywhere...Please get the facts. That commission doesn't change the market value of a home. Commissions are not fixed. I will gladly spend an hour explaining the process of buying and selling in this market with no obligations and I am sure there are other Real Estate professionals that will do the same. Additionally one basic misunderstanding is that thet person sitting in the open house is not always the listing agent. Here are some basic facts. 1) The listing agent and seller have signed an agreement and the listing agent's loyality is to that seller. 2) It is important to understand the pros and cons of a dual agency. 3) Representing both sides means twice the work and I don't know of any listing agent willing to drop their commission by 3% and do twice the work. 4) In my opinion, any savings from a discounted commission should go to the seller.

Your chances of buying a foreclosure or short sale in today's market are good. But, you may be in for a surprise about the process. No two are similar. You may have to pay for the electricity and water to be turned on to do an inspection. The home may not have cabinets or a stove. FHA and VA will certainly frown on that. If it is a good deal, there may be several offers with many of them above the listing price. Anything can happen. Or, you may be waiting forever for a response. Keep looking. There are also opportunities today for Sellers to do a warp-around loan or a seller carry back. This can be great for both the buyer and seller. Creative financing for buyers may be the only way to get into the market and the seller wins because the seller can charge an interest and do better than keeping their money in the bank. If it hadn't been for seller financing, I would not have been able to buy my commercial building or my first home. I will blog more about this later....