Thomas owned a home in Sandy Springs, he bought it in the mid 90s and had taken great care of it. Thinking he’d be there for another 20 years, Thomas updated the kitchen & bathrooms, and did some landscaping. However, a couple months later, Thomas found out his job would be taking him out of state. He needed to sell his beloved home, and luckily, his friend Jane is a REALTOR®. She assures him it’s a seller’s market, and it couldn’t be a better time to list his home for sale.
After spending weeks preparing his home to sell, they finally put it on the market. Within three days they received seven solid offers, and one of them was $10,000 over list price! Thomas decided to accept the offer that was $10K over asking, and just like that, his home was under contract. However, a week into it, Thomas began to get an unsettling feeling. They hadn’t heard a word from the buyer since going under contract. No inspection, no appraisal, nothing.
Suddenly, on day nine of their ten day due diligence, the buyer’s agent sends over a termination form… without any explanation. What just happened? Unfortunately, this same scenario plays out more than you might think!
A Product Of The Market
Don’t get me wrong, for the most part, bidding wars are great news for sellers. In a market where buyers are plentiful and available homes for sale are not, the bidding war has become an all too common occurrence. In this market, sellers seem to be in total control when it comes to negotiating terms of the sale. Most sellers are using this leverage to their advantage; simply naming their price,...
I know what you’re thinking. Why would a real estate agent give homeowners (potential clients) advice on how to sell a house without a REALTOR®? Isn’t it my job to convince them that selling with an agent will net them more money and a quicker sale? Shouldn’t I be warning them of all the pitfalls of going it alone, and telling horror stories of for sale by owner (FSBO) transactions gone wrong? After all, how do I make money if homeowners are doing it themselves? Great questions, so let me explain.
There Will Always Be FSBO Sellers
It’s a fact, some people just refuse to hire a real estate agent, and nothing I say will convince them otherwise. I’ve come to accept that, and I understand that it is just part of the business. Most of the time, these are folks looking to save the five to seven percent brokerage fee most agents in Georgia charge to facilitate the transaction. Others may not trust real estate agents… or maybe they’re just the do-it-yourself type.
Whatever the case, I believe they should all have access to the proper resources that will give them the best chance of successfully selling their home. If they’re unsuccessful in doing it on their own, hopefully they’ll remember me when they do decide to hire a real estate agent. Anyway, let’s get started with the for sale by owner guide!
Step 1 - Do Your Homework!
4 Tips For Handling A Low Offer
So, you’ve gotten an offer on your home – just what every person selling their property dreams will happen! But the offer is low, way too low. Don’t worry, lowball offers happen all the time, and if you keep the following four tips in mind, you can overcome the initial frustration a lowball offer creates. Keep in mind, the goal is to negotiate a price and terms that work for you… and that the buyer will agree to. You can always just say no, but these tips will help you and the buyer get to YES!
Don’t Let Your Emotions Get In The Way
After all, this isn’t personal, it’s business. It doesn’t matter if the offer is low and the terms are ridiculous and the closing date is too far away. An offer means someone wants to buy your home. Everything is negotiable, so don’t feel insulted or sad or panicked. It can be tough, but remember to remain calm and move forward. This is where having an experienced real estate agent is most beneficial.
Your agent isn't emotionally attached to the home like you are, so they're in a much better position to approach negotiations with a level head. If necessary, take some time to let your emotions settle before responding to the offer. Once you've had some time to cool down and think about it, the offer may not seem as bad as it did initially.
Consider All The Terms Of The Offer
Though price is the number one element both buyers and sellers look at, the other terms of the offer deserve to be given just as much consideration. You might want to accept a lower offer if the closing...
Winning In A Multiple Offer Situation
Congratulations! After all of your hard work, your house has finally received an offer. In a hot real estate market such as Atlanta, there’s a real possibility that you might receive multiple offers. In that case, there are a few things that you should keep in mind when choosing the best offer for your home.
Rely On The Knowledge & Experience Of Your REALTOR®
Luckily, you have an experienced real estate agent on your side to help navigate a multiple offer situation. However, you should still have a general understanding of how the process works. In multiple offer situations, your agent may advise you to pick one offer to begin negotiating, or, call for a highest and best period where a deadline is given to all buyers to submit their highest and best offer. When it comes time to negotiate an individual offer, you essentially have three options: accept, reject, or make a counter offer.
Mentally Prepare For Offers In Advance
Before you ever receive the first offer, you should have your limits and baselines in mind. Determine in advance what is most important to you when selling your home. If price is number one, then be prepared to be flexible on your closing date or the length of your due diligence. If you absolutely must be closed by a certain time, then perhaps you could be flexible when it comes to price or terms. Setting your limits ahead of time will make it easier to agree to a strong offer or reject a low offer and move on.
Keep All Factors In Mind
Yes, price is the number one factor most sellers focus on. But remember, there...
Home warranties are quite common in Georgia real estate transactions, but they're usually only seen as a benefit to the home buyer. Sellers should be aware that a home warranty can also be very beneficial to them as well.
A seller's home warranty is essentially the same warranty policy buyers get after the purchase of a home, but this one covers the property while it's on the market, then is transferred to the buyer at the time of closing.
Offering a warranty to buyers is not only a great marketing tool, but it could also cover the cost of expensive repairs while the home is being advertised for sale. Here are some additional reasons why you may want to consider enrolling in a warranty when listing your home for sale.
Why Offer A Warranty?
Give Buyers Confidence In Your Home
So you may be asking, why should you as a seller, offer to pay hundreds of dollars for a home warranty that will protect the buyer? Well, why do the makers of cars, televisions and other consumer products offer warranties? Peace of mind! Someone buying a home is making a huge investment, and they usually want to know their...