{"id":1823,"date":"2018-07-09T03:20:26","date_gmt":"2018-07-09T07:20:26","guid":{"rendered":"https:\/\/talk.talktotucker.com\/?p=1823"},"modified":"2020-03-30T14:20:20","modified_gmt":"2020-03-30T18:20:20","slug":"fsbo-no-know-dont-know","status":"publish","type":"post","link":"https:\/\/talk.talktotucker.com\/agents\/fsbo-no-know-dont-know\/","title":{"rendered":"FSBO or no? How do you know what you don’t know?"},"content":{"rendered":"
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On a stretch of road about a mile and a half long yesterday I counted three For Sale by Owner signs.\u00a0 I didn\u2019t stop and inquire, or try to sell them on the benefits of working with a REALTOR\u00ae; more often than not folks who start with a FSBO sign end up signing with a REALTOR\u00ae within a couple weeks, once they realize the time they\u2019re spending takes them away from their own job and day to day responsibilities, or the transaction they had ended up falling apart in a confusing way.\u00a0 But seeing those three signs I couldn\u2019t help but wonder if those sellers have been seeing all the \u201cSold in Three Hours with Twelve Offers\u201d declarations all of us have seen REALTORS\u00ae put on social media this year.\u00a0 Must be easy, right, just put a sign in the yard then count your stacks of money?\u00a0 It\u2019s true that now is a pretty good time to be a seller, and it\u2019s also true that sometimes homes are listed only hours before offers are received.\u00a0 But in order to truly maximize your gains and minimize your risks, you must understand each detail of the purchase agreement as well as the consequences if something is missed, prepare for each step of the process before it happens, and have the experience to work through each of those steps.\u00a0 In other words, it takes a whole lot more than a sign in the yard to sell a home and maximize your gains, FSBO or not.<\/p>\n

The Purchase Agreement used by most REALTORS\u00ae is eight pages.\u00a0 If the process works the way it should and everyone is doing what they\u2019re supposed to, you probably only refer to about two of them.\u00a0 But the times when the process becomes challenging are when the other six pages come into play.\u00a0 Knowing why, how, when to leverage all eight pages of the purchase agreement is a crucial difference between a successful closing and, well, something different.<\/p>\n

Going back to a comment I made earlier: It\u2019s good to be a seller.\u00a0 Yes, it is but don\u2019t think for a moment buyers aren\u2019t getting their licks in too.\u00a0 Many buyers are weary \u2013 they\u2019ve lost several other homes, they\u2019re tired, dejected.\u00a0 So when they\u2019ve finally gotten under contract they\u2019re looking to maximize for themselves.\u00a0 Understanding what the inspection process means is a big deal, but especially important if the buyer agreed to pay the seller above list price.\u00a0 Many sellers believe they don\u2019t have to fix anything and if the buyer doesn\u2019t like it, they can walk.\u00a0 While that is true, there are some pretty important legal ramifications that go along with that.\u00a0 Working with a professional who is able to educate you so that you can make the best decisions moving forward is crucial.<\/p>\n

Now about this appraisal: whose business is it anyway what the seller and buyer agreed to?\u00a0 Well, the appraisal is done for the lender; not the buyer, not the seller.\u00a0 The main purpose of the appraisal is to make sure the lender isn\u2019t lending more than the home is worth.\u00a0 The appraisal is done by an independent person who uses a strict formula to determine value.\u00a0 One of the ways they do that is by looking at historic values of comparables.\u00a0 But wait a minute \u2013 how do home values grow if the appraiser is looking at historic data, and how does that work in this market where buyers are often offering more than list price?\u00a0 Exactly.\u00a0 Times a thousand.\u00a0 I do this for a living, full-time, millions of dollars in transactions each year, and every one of my listings gets my full attention, and a great deal of research and care when it comes to the appraisal.\u00a0 It comes down to this:\u00a0 It matters not what the buyer and seller agree to in terms of purchase price, if the appraiser assigns a lower value, that agreed price goes out the window.\u00a0 That often means the seller gets less money than they agreed to at the beginning, or the deal falls apart and you start over again.\u00a0 And depending on the type of loan the seller may be stuck with the appraised value even in a future transaction.\u00a0 Clear as mud, right?\u00a0 Understanding the importance of the appraisal can\u2019t be overstated, and neither can being prepared and maneuvering through it.<\/p>\n

Having said all that, I don\u2019t believe FSBO is necessarily a bad thing for some situations.\u00a0 I\u2019m not one of those people who says you wouldn\u2019t perform your own surgery so why would you perform your own home sale.\u00a0 Well, I didn\u2019t go to school for 12+ years to learn to do something that if I fail I die.\u00a0 But I will say that a home is the largest, most important financial asset most people have so before throwing that FSBO sign in the yard consider how important your financial future is to you and your family, and whether you have the experience to leverage your best outcome.<\/p>\n

As always, if you have any questions, and you\u2019re not currently working with a REALTOR\u00ae, I\u2019d love to hear from you.\u00a0 agarard@talktotucker.com<\/a> 317\/752.6331.\u00a0 Until next time – Angie<\/p>\n

By Angie Garard, talktotucker.com\/angie.garard<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

On a stretch of road about a mile and a half long yesterday I counted three For Sale …<\/a><\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[3581],"tags":[4504],"yst_prominent_words":[4503,4501,117,4497,495,4502,4498,4500,3250,4496,4494,4495,4499,162,918,3781,3786,4492,842,4493],"fimg_url":false,"_links":{"self":[{"href":"https:\/\/talk.talktotucker.com\/wp-json\/wp\/v2\/posts\/1823"}],"collection":[{"href":"https:\/\/talk.talktotucker.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/talk.talktotucker.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/talk.talktotucker.com\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/talk.talktotucker.com\/wp-json\/wp\/v2\/comments?post=1823"}],"version-history":[{"count":0,"href":"https:\/\/talk.talktotucker.com\/wp-json\/wp\/v2\/posts\/1823\/revisions"}],"wp:attachment":[{"href":"https:\/\/talk.talktotucker.com\/wp-json\/wp\/v2\/media?parent=1823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/talk.talktotucker.com\/wp-json\/wp\/v2\/categories?post=1823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/talk.talktotucker.com\/wp-json\/wp\/v2\/tags?post=1823"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/talk.talktotucker.com\/wp-json\/wp\/v2\/yst_prominent_words?post=1823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}