Got the For Sale By Owner blues (1 Viewer)

[BrettB]

Mike, it appears your post is one of the unlucky ones that got wiped out. However, I could read some of it in the preview. Not sure if you had specific questions but it sounds as if you're a little depressed going through the home-selling process.

We sold our house a few years ago. We had made an offer on a house contingent on our house selling. We were responsible for "open house" on the weekends. We typically had good traffic and many people would seem quite interested but then nothing would come of it.

After a few months, with the new house nearing completion and the closing date getting closer and closer it became very stressful and depressing.

Then it happened, seemingly at the last possible moment. A couple saw the house, decided to buy and all was right with the world. (well, mostly)

Good luck and hang in there.

 

[Jeff Ulmer]

Yes, they say there is a buyer for every house. Right now I just need the one for mine.

 

[MikePeroni]

Basically I was telling my story how we listed the house by owner a few weeks ago, got a good amount of people coming through and calls, but not one offer. We have one of the most expensive houses in the neighborhood which was built in 99', because we have a treed, cud-de-sac lot, and a finished basement with a full bath.
It seems the people I attracted were more casual lookers than serious buyers, and even though some people spent a good amount of time in the house and really complimented it, any discussions never even got serious.
Anyway, we are going to go with a realtor that is only charging 3%...hopefully the MLS system will bring some real lookers. I guess we expected at least an offer by now(about 20 days) and it just getting so depressing Ive found myself losing sleep over this. I guess it really is a buyers market out there.
One other thing that crossed my mind is the fact that I did all the work myself on the house like landscape, deck, basement ect...and I still stand to only make about 35-40k on it. If this is the case than my neighbors who paid top dollar for everthing to be done would probably just be breaking even if they sold? Whats wrong with this picture? Oh well, were moving cause we dont like the neighborhood so I guess I can chalk it up to being a little lesson..

 

[Micheal]

The only thing I put into my home was carpeting the basement rec-room. I bought the house 2 years ago (this coming July). I just sold it for $40K more than what I paid for it.

I bought and sold at the right time.

We just bought a nice home with a gorgeous backyard on a private treed lot. One problem, we move in at the end of August. My wife is due with our first baby at the beginning of September.
Should be a close call...

 

[SteveA]

A lot of people avoid FSBO properties like the plague because FSBO sellers have a reputation for trying to squeeze every penny out of their property and not negotiating much on the price.

 

[Neil N]

Anyway, we are going to go with a realtor that is only charging 3%

You might want to be a little careful about this. I don't know what's typical where you are, but here in Las Vegas the commission on a single family home is typically 6%, with the listing agent offering 3% to the buyer's agent. Paying only 3% total, it would stand to reason your agent is offering less than 3% to the buyer's agent. When the buyer's agent pulls up prospective homes on the MLS to show, they often need to/do throw some out. One of the first to go will probably be one that only offers them 1-2% vs. the 3% others are paying.

Of course your mileage may vary, and typical commissions for your area or property type might be different. I would at least ask your realtor what amount is being offered for a buyer's agent, and try to find out how that compares to the usual amount in your area.

 

[Jeff Ulmer]

I agree with Neil. Yes, you'll end up paying more in commission, but that fee is what will get realtors to show your property, and potentially bring you a better offer. Many realtors will cut you a deal if they sell the house themselves, since they don't lose any of commission, but if that extra percentage attracts an outside realtor with client who will pay top dollar for your house, the extra could be worth it.

Also, if you have the most expensive house in you area, be prepared to wait, as you are at a selling disadvantage, since most people want to be in the middle ground for their area.

Open houses are very poor in terms of getting offers, close to only 1%. You are much better off having realtors with incentive to sell your property find you qualified buyers with private showings.

Up here, the market is supposedly a seller's market, with interest rates at all time lows (4.25% for a three year fixed), people are looking to buy or upgrade.

 

[KyleS]

Brett,

How do you know how much your property is worth? have you had a professional appraisal done on your property, or did you just take what it was worth when you bought it and add in what money you have spent on upgrades?

KyleS

 

[MikeAlletto]

There is a house on my block that has been up for sale for over 5 months (I moved in 5 months ago and it was up for sale then so it may be longer). But the thing is the neighborhood is still under construction. I don't know anyone who would buy a used house where they could get a brand new one in the same area for the same price.

I think house sales are slowing down. They've been finishing building houses around me faster than they've been selling them.

 

[Jeff Ulmer]

I don't know anyone who would buy a used house where they could get a brand new one in the same area for the same price.

Build quality. They are slapping up houses around here as well, but they are junk. There is not a straight wall or proper mitre in sight. They are using pressboard for the exteriors instead of plywood, and finger jointed studs with no more than 6" of solid wood in them. Sure, they may look relatively decent, but they aren't built to last like my sturdy 70 year old house.

 

[Micheal]

They are using pressboard for the exteriors instead of plywood, and finger jointed studs with no more than 6" of solid wood in them.

Exactly!

The house I just bought is 14 years old but the guy who owned it put in a ton of work (crown moldings, new hardwood floors, ceramic tile, central vac, windows, doors, roof, etc...). At least I know that the build quality (plywood instead of press-board for example) is a little bit better than what I see going up today.

 

[Lee L]

Jeff, I think he meant that no one would buy a 1 year old house built by the same builder that is building the same basic house with the same level of materials right now brand new for the same price. I have the same issue as well. They are just now finishing my neighboorhood so I should see some increase in value soon.

Clearly a 70 y/o house will be built wiht much more stout materials than a house built now. Some are better even if they are lighter and some definitely aren't.

 

[MikeAlletto]

but they aren't built to last like my sturdy 70 year old house.

Yeah Lee is right. All the houses in my little neighborhood are the same builder (different builders in close buy surrounding neighborhoods making up the whole communitee).

 

[Philip_G]

you guys are KILLIN me. I'm buying my first (town)house because I'm sick of renting and all that crap. Hopefully things will pick up before I'm ready to sell :frowning:

 

[MikeAlletto]

Philip if you are just buying now, and if its in a good neighborhood then don't worry about 5 years or so from now and just enjoy the purchase. I just bought in february and all I think about is "should I mow the lawn today or wait?" or "I need new furniture/tv/home theater/computer". I need to "paint/wallpaper/landscape/decorate" The only thing I regret so far is the lawnmower I bought. It sucks! I hate it! I purposely bought cheap because I figured a cheap non-self propelled mower would be fine for the (what I thought at the time) small lawn. I'm kicking myself everytime I mow now. I'm trying to put up with it till the end of the year then spend some money and buy a good mower but I don't know if I'll be able to last and I refuse to pay someone to mow my lawn (as tempting as it is)

Its all good, enjoy it.

 

[Shane Bos]

We sold our house about 3 years ago and didn't even list it. We even got asking price for it. For all those not having luck selling it's too bad you can't just put your house here in Red Deer it'll sell in a flash. There are not enough lots here to keep up with demand for houses.