TOM & CYNDEE
BROWNER - CRS,
ABR, GRIQUAD CITIES REAL ESTATE WITH RE/MAX
SERVING THE ENTIRE IOWA AND ILLINOIS QUAD CITIES ............................................................
DAVENPORT - BETTENDORF - ROCK ISLAND - MOLINE AND SURROUNDING COMMUNITIES
TOM & CYNDEE
BROWNER - CRS,
ABR, GRI
BROKER OWNERS OF RE/MAX BI-STATE - SERVING IOWA & ILLINOIS
1-563-388-0008 Office - 1-563-388-0083 Fax - 1-866-388-0083 Toll Free - 1-563-570-7629 Cell - 355-1616 Home
Have a question? The answer is just a call or e-mail away. Contact us at tom&cyndee@quadcitiesrealestate.com
We are both Accredited Buyers Representatives (Certified Buyer's Agents) we know you want to make the best decision. You want the best home possible for your investment. We know the market, and we work at your pace and not ours. We will guide you through all the forms, take you through the first time buyer programs and/or financing, inspections and explain everything each step of the way. We take care of all the details and problems before they become a problem to you. Call us on our private line at 570-7629 at RE/MAX BI-STATE or Contact us at tom&cyndee@quadcitiesrealestate.com - LOOKING TO SELL? Check out the services an Certified Residential Specialist can mean to you.
Our Goal is to provide you with the most up to date information and Exemplary Service at all times. Homes are an important decision and a long term investment. When Your Money Matters, you need and deserve the most competent professional help available. We strive to always be on top of the market and to further our education's, that we may be knowledgeable to give you the best service and advice at all times.
FOR SALE BY OWNERS
THE FACTS
Buyers should be careful in viewing For Sale by Owners. For Sale by owners can have more problems than listed properties. Closing may be more difficult as the seller's lack of knowledge and perhaps your inexperience can result is the home never closing.
The home whether sold by the owner or through a Realtor should not sell until it is the best priced, cleanest, nicest, best built, largest, or the home with the best finance terms in that market.
Many For Sale By Owner (FSBO) homes have flaws, do not meet city code, or have other problems. The owners do not want to fill out the mandatory property condition disclosure or tell prospective buyers about these problems. Realtors have told them that to list, they must disclose. So they try to sell their homes themselves.Then there are the homes that are dirty, have carpet or other problems. The owner knows that homes in better condition have sold for more money and hopes that he can get the same price without bringing the property up to neighborhood standards. Realtors may have told him that the selling price is expected is to be lower unless he fixes up the problems. Instead of taking the advice, they try to sell on their own. A recent Leader article documented the large increase in the number of investment properties with code violations and problems that were hitting the For Sale by Owner market.
Some FSBO homes need to be sold by the owner because they just bought it and now have to sell it. They have been transferred, lost their job or have other problems which require them to sell their home immediately and without assistance from their company or others. The problem here is that they may try too hard or may overprice the home in hopes of getting more money. This may send the message that this home is right for a low offer or may prevent the home from being seen. Since you are not related to the seller, all you want is a deal. He only cares about green money and if the offer is too low, you may never arrive at an agreement. Sellers and buyers often end up getting mad at each other, and one or the other withdraws. This is often because neither party is used to negotiating and neither may be aware of the actual value of this particular home in the market place. National statistics show that over 67% of the For Sale by Owner homes end up listed with a Realtor. Before they are listed, who protects your interest? If the seller or his attorney makes out your offer to purchase, who was looking after you?
All these things are known and accepted by buyers. Sometimes, For Sale by Owners can represent a good value. However, before you make an offer, you should find out what the property is actually worth in this market. Just because a seller believes he is offering a good deal, does not make it a good deal for you. Inspections and other concerns also need to be addressed to protect your interest.
OPPORTUNITIES - BROADENING THE MARKET - OPPORTUNITIES LOST
Sometimes the home is perfect and the seller is knowledgeable of the laws and requirements to make a sale. He may hire specific services through an attorney or agent, so he will decide that he can sell it himself. Sometimes sellers will accept a buyers agent showing the home and agree to pay that agent's commission to bring in the buyer, get them through finance and arrange closing. If you want representation, try this approach. The seller still saves, but you have someone looking after your interest and overlooking the total transaction to make sure that everything is done correctly and that the home closes on time.
You may want to hire help ala-carte. You can hire an agent to do a CMA on the home, prepare your offer, take you into finance, or do other things. You of course would rather have the seller pay for it, but using and paying for a Buyer Representative may save you money in the long run. If the seller is not paying commissions, you might even reduce your offer by your agent's fee. A Buyer's Representative has the job of helping you get the necessary inspections, helping you resolve your financial problems with the bank, arrange the details of closing and make your transactional problems go away before they bother you.
Only 33% of the For Sale by Owners ever get a buyer to the closing table. Often they have the property on the market for a year or more. National statistics show that of the lucky 33%, only 1/3 actually close on the first offer they accepted. Buyers fail finance, inspection dates or other dates in the offer are missed and the offer expires and goes unclosed. Other problems may not be negotiated out, personalities get involved etc... Once an offer is agreed to, you must make sure that all contingencies are met or either party may walk out. There are many details and each must be attended to, and as a For Sale by Owner buyer, they are your details.
The goal of every seller is to get the most money, in the shortest time, with the least cost and inconvenience. Wanting does not get it done! The goal of every Buyer should be to find the best home in the best condition in the best neighborhood in their price range. Value not a steal. Since you are not related to the seller, you will not steal their home unless there is something really wrong with it. Solid sellers with solid homes want solid green money. If it looks too good to be real, it probably is. Just because the seller tells you he is going to sell his $90,000 home for only $70,000 does not mean the house is worth $90,000. In fact is may be worth $65,000 and the seller wants $70,000. You need to know the market.
Often sellers are selling more than their home. They are selling the window mom and daughter stripped and painted, or the garage where dad and his son built the kite, the room their first baby came home to or other memories. The memories may be worth a million dollars to them, but you do not want to pay for them. What you as a buyer want is value.
It can be done, if you are skilled enough to do it right. I hope this has helped you formulate some ideas. Buying a home is more than just reading a few newspaper adds, going to a few open houses and making an offer.
We wish you good luck and if you need some help, call or E-mail us, we don't bite and will try to answer your questions. If you need services, we can discuss ala-carte billing. If you would like representation, go to our buyer guide Buyer Representation. It may help you.
Good Luck!