FSBO statistics you should know as an owner:

There are 2 main reasons an owner decides to sell on their own; the first is to avoid paying for a Realtor commission, which is usually 6% of the purchase price.  The second reason is because of a prior negative experience with a Real Estate agent.   Lets look at some statistics:

FSBOs accounted for 13% of home sales in 2008.  As a National Average, the typical FSBO home sold for $153,000 compared to $211,000 for agent-assisted home sales. NAR Quick Stats

84% of FSBO’s eventually hire a Realtor

85% of buyers use a Real Estate Professional to guide them through the process. 2008 NAR Profile

87%  of buyers use the internet as their primary method of searching (no secret here, is your online presence getting you traffic from buyers?)

There is a reason why owners who sell on their own statistically sell for less!  There are savvy buyers looking for By Owner listings because they will expect a discount.  They know you are not paying a commission and this will attract bargain hunters and speculators.  Since the majority of qualified buyers work with a Real Estate professionals, you will have the best results working in the pool with the most qualified buyers.

Selling on your own? Prepare & Investigate the following:

You should ask yourselves these questions so that the sale of your home is a smooth transition.  And to show any potential buyers that you are serious!

Where are current interest rates?

What have similar apts in your building (or nearby) sold for? Very important – do not confuse with what they are asking…

What happens if my home does not appraise for the selling price?

Do I have the managing agent information and board package?

What will potential buyers need in order to pass the board requirements?

How long will the sales process take my apt?

What taxes will I or my potential buyer need to pay for?  (both fedaral/state taxes & building taxes)

What Federal & State laws do I need to follow in order to sell?

How much in taxes can I expect to pay after the sale? (both fedaral/state & building taxes)

What tax implications will the buyer expect to pay? (both fedaral/state & building taxes)

JoeDNYC

Selling on your own? Learn How to Deal with Realtors…

Hey, we’re all not that bad!  Here are a few tips to handle the many Realtor calls that you will be getting!  You will be getting many calls if you are advertising.

The reason Realtors are calling is simple.  We want to list your home and get paid a commission (you didn’t think I’d be that honest and direct did you?) Hopefully a trusting relationship can be built between us!

In general, there are two groups of Realtors that will call you.  The first group are new agents trying to drum up some business.  This group is in the under 2 years in the business category.  9 out of 10 Realtors try calling FSBO ‘s once or twice (or as many times as their trained) and then never do again.  The second group are the old pro’s & (like me) have established the FSBO market as a primary prospecting source.  Yes, lots of owners do list their homes with me after giving it a shot on their own.

On the whole, it can be said that if you ever did decide to use a Realtor, those that make themselves known to you are the most motivated and aggressive and deserve a shot at it; over those that sit and wait for business to fall in their lap!  If I were you – I would pick from this group that is motivated and aggressive to do a get the most amount of money for their clients!

Now, there may be some realtors that you find that you don’t want to deal with.  Telling them that you’re not interested probably won’t stop them.  The best way to get them to stop calling you is to tell them you have an agent you’re working with.  Feel free to use my name!  Most will stop right there.  A well-trained agent might offer just to give you a second opinion.  If you don’t want them to call back just say “no”.  You’ll probably never hear from them again.

This is how I feel about it – I would turn away any agent who insults your intelligence, doesn’t respect your “no” or in any other ways turns you off.  There are too many honest, good, hard-working agents to pick from to bother with any whom are not up-front from the start.

One thing that you may hear is ” Would you cooperate with a Realtor if I had a buyer?”  There is nothing wrong with that.  What the agent means is that if they happened to find a buyer that was a match with your home would you pay them a commission.  The amount of this commission would be negotiated with the Realtor.  This won’t hurt you a bit, as there is no listing contract or formal arrangement unless the agent actually brings you a buyer.  Then you would have to come to an arrangement.  Don’t count on this actually happening however, national surveys have shown that this only happens in less than 3% of the cases!

Nearly 15% of NYC Job Seekers willing to leave city

From Crains: New York’s a tough town. It’s gotten even tougher with its 10.6% unemployment rate. But a surprisingly small number of mid- to senior-level job seekers in New York City—just 14%—are relocating elsewhere, according to a study released Wednesday by career consulting firm Right Management.

This relocation number is up from the 11% reported in 2007, when the local unemployment rate was less than half of today’s and the city had over 128,600 more jobs, according to the New York state Department of Labor.

“There’s this uniqueness of New York,” explained Ed Witherell, the New York market vice president of Right Management. “There is a great deal of opportunities, beyond your industry and beyond the function you may be performing.”

Mr. Witherell said the ranks of relocators is lower here than many people might expect because the city is home to scores of significant technology, publishing, financial, media and fashion companies, and individuals want to pursue the opportunities in their backyards. People are moving to New York for the same reasons.

The survey did not include information about job seekers coming to New York, or break down the areas of relocation by industry or demographics.

The relocation rate from New Jersey increased to 13% from 9% in the same period; meanwhile, 7% of job seekers are leaving Long Island, from 4% in the last survey. The nation’s average of 15% remained constant.

Of the surveyed 27,000 individuals nationwide, 3,000 were from the Northeast.

http://www.crainsnewyork.com/article/20100224/FREE/100229940

Qualifying your buyers…

We invest large amounts of time with buyers.  The key component to successfully working with buyers is the qualifying process. Qualifying is the lost art of the sales process. Sometimes we get so excited that we have a lead that we fail to determine its value. That is why the process of qualifying is focused on determining the value of leads.

To really have effectiveness in qualifying we must develop a series of questions. This series of questions or script has to be used every time. Every buyer must be evaluated on his response to these questions. Some examples of questions are:

How long have you been looking? If they have been looking for six months the motivation to buy may not be very high.

Do you need to sell a home before you can buy?  If you have to wait for their home to sell, how will this impact you?

Have you met with a lender?  Figure out if this potential lead get qualified to buy your home.  Email me at jdelorenzo@citi-habitats.com for Mortgage referrals.

Are you committed to another agent?

How soon do you want to be in your new home? This question will tell you the buyer’s motivation. Time frame and motivation are linked together. The longer the time frame the lower the motivation.

Determining the time frame and motivation are critical to selling your home.

Make sure that you qualify everyone you work with before you invest your time. Time is your most precious asset. Don’t invest it where it doesn’t bring you a return. I guarantee that if you took the time you waste with unmotivated people and invest it at home with your family the return would be like no other.