For Sale By Owner Properties Often Fail. Why?

 For Sale By Owner Properties Often Fail. Why?

As a licensed real estate professional, I’ve seen my share of for sale by owner properties around. Most of theFor sale by owner properties often fail. Why? time, they end up with a Realtor sign in the yard after months of languishing on the market with a “For Sale By Owner” (FSBO) sign. I just passed a former for sale by owner property yesterday. As usual, I chuckled when I saw the Realtor sign in the front yard.

Why do for sale by owner properties fail at a higher rate than a professionally listed property?

  • Homeowners seldom really know the current market. That leads to an overpriced home that savvy buyers would never buy. I showed one this past Monday that was 62% overpriced. I guess the seller assumes there is always a buyer with more money than brains out there. What you want, and what a home will sell for may be light years apart.
  • Showing a for sale by owner can be challenging. When an agent sets up a dozen showings in one day, scheduling becomes an art. Access is the key to making that day successful. If a for sale by owner can’t allow the house to be shown except on a limited schedule the odds are radically against him. That’s true of listed properties too. Access is really important.
  • Homeowners may not know how to negotiate an offer. There is usually some give and take in a real estate offer. If a for sale by owner is locked on a price and won’t budge, or won’t let a home inspection or repair request become a part of the deal, or is refusing a termite inspection, or is demanding of a closing date closer than a lender can accommodate, then a buyer can’t buy it.
  • Homeowners may not disclose things, or they may disclose too much.
  • Homeowners may not understand legal contracts. I ended up re-writing a contract for a for sale by owner last year because there were so many legal liabilities in in it that could eventually come back to bite the seller. The seller had no idea, and the buyer, who wasn’t represented either had no idea of the legal ramifications of a binding contract full of potholes.

This list could go on and on, but the reality is that a FSBO is almost always better off selling through a competent Realtor. It will reduce stress and it will help the seller get across the finish line with a better deal.

 

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Kipliner’s Personal Finance: Winchester, VA one of the 10 Great Places to Retire

I’ve always been proud of my community, and it’s nice to see others point tothe benefits of living in Winchester, VA. The August 2015 copy of Kiplinger’s magazine features Winchester, VA as one of the top 10 Great Places to Retire.

Many of my clients are soon-to-be retirees who come to find a bargain home in Winchester. I just spend a few days with a couple from Massachusetts. Before them, a couple drove in from Chicago. A Tennessean couple preceded them. It’s not just the low taxes that draw them in, but it’s an array of things.

Winchester, VA is 70 miles west of Washington, DC. It’s a commuter’s paradise, and for those who like to attend professional sporting events, we’re right next door to the home of the Nationals, Orioles, Redskins, Caps, Wizards, Mystics and D.C. United. If you like to compete, the Marie Corp Marathon is just down the road. The Shenandoah Valley also offers numerous triathlon and marathon opportunities along with mountain and road biking events.

The Kennedy Center is close by for entertaining, but in Winchester, the Shenandoah University offers a wide variety of music and theater options, and they are Broadway quality. The Summer Theater program entertains the community with outstanding productions of classic and modern musicals. I have never been disappointed. The student body is an extraordinarily talented group of soon to be professionals.

The cost of living in Winchester, VA is lower than many of her eastern neighbors. One of the areas that is most evident is real estate taxes. I’ve been shocked at the real estate taxes many of my buyers pay in their current communities. The most recent one was a whopping $900 a month real estate tax on his current home. The home he is buying will have a tax liability of $1041 per year. That’s a $9759 yearly savings. It’s like getting a raise.

The downtown walking mall hosts 30+ restaurants along with art galleries and specialty shops. It has been one of the most highly sought after areas for housing in Winchester. The street is lined with businesses with apartments over-top overlooking the variety of events that take place below. It’s a continually evolving world of fun.

Kiplinger got it right. Winchester, VA is a great place to retire to, and it’s getting better every year, but it’s also a great place to live for any age group. When you’re ready to starting look for housing in the Winchester, VA area, be sure to call your Cornerstone Business Group, Inc., real estate professionals. We are your local real estate sales pros.

Kipliner’s Personal Finance: Winchester, VA one of the 10 Great Places to Retire