Why do FSBOs often fail to sell? It’s really not a hard question to answer.

Why do FSBOs often fail to sell?

Why FSBOs often fail to sell?As a real estate professional, I’ve seen my share of FSBOs. Most of the time, they end up with a Realtor’s sign in the yard after months of languishing on the market with a “For Sale By Owner” sign. I just passed a former FSBO yesterday. As usual, it has a Realtor sign in the front yard.

Why do FSBOs often fail to sell?

Why do they 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 last year 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 FSBO 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 FSBO can’t allow the house to be shown except on a limited schedule the odds are radically against it. That’s true of listed properties too. Access is critically important.

There’s more to selling homes than placing a sign in the yard.

 

  • Homeowners may not know how to negotiate an offer. There is usually some give and take in a real estate offer. If a FSBO 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. In a case like this, the house is basically an island with no way to visit 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 FSBO a few years ago because there were so many legal liabilities 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. Contracts are a Realtor’s bread and butter. Most FSBOs never see one away from a Realtor initiated deal.
  • Listed homes sell for more than FSBOs, on average. On average, listed homes sell 10-13% more than FSBOs. A 2015 article by the National Association of Realtors showed that the average FSBO sold for $185000, and the average Realtor listing for a similar house, sold for $240000. That’s a 23% loss by going it alone. Is it worth it?

Why do FSBOs often fail to sell? – Make the best choice

This list could go on and on, but the reality is that a FSBO is almost always better off selling through a competent Realtor. As is the case in most real estate transactions, fees can be negotiated. If money is an issue, let the agent know that up front and he/she can work with you. Having a qualified agent on your side can reduce stress, and it will help you get across the finish line with a better deal.

Why do most FSBOs fail? For the same reason car mechanics don’t do brain surgery. It’s not their area of ability, and for the sake of the community, they’re better off leaving brain surgery to medical professional who do it everyday. The same is true of real estate. Those who do it everyday are your best resource for an excellent outcome.

When you’re ready to list your FSBO with a competent real estate firm, give Cornerstone Business Group, Inc., a call. We are your local real estate sales pros in this area.

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Berkeley-Jefferson County, WV Real Estate Market Review – 2017

Berkeley-Jefferson County, WV Real Estate Market Review – 2017

The BerkeleyJefferson County, WV real estate market had a great 2017. Both markets saw increased numbers at all levels, and they outperformed their immediate southern neighbors of Winchester City, Frederick County, and Clarke County, VA by 31%.

Berkeley-Jefferson County, WV Real Estate Market Review: Positive Numbers

The Berkeley-Jefferson County, WV real estate market increased sales 7% over the same period in 2016. The markets have grown 19% over the past five years. Property values have also increased 4% year to year and 18% over the past five years.

More bang for the buck

The 2017 market saw an average sales price of $209,988 for a single family home with 3 bedrooms and 2.5 baths. Just across the border in Virginia, that same house would have cost a buyer $277,755.

The Berkeley-Jefferson County, WV real estate markets are geographically positioned Berkeley-Jefferson County, WV Real Estate Market Review - 2017to give commuters into the D.C. – Northern Virginia area more home for the money and an equal or better commute to work. The Amtrak Caperton Station in Martinsburg, WV adds value to living in the area.

Home values have increased steadily for the past five years. The 2016 average sales price was $201,341, with 2015 being $192,578, and 2014 and 2013 at $190,586 and $173,226 respectively. That 2013-2017 change in sales price is 19%. The steady increase in home values shows a market that has not only healed from the 2008 recession, but it one that is thriving.

Berkeley-Jefferson County, WV Real Estate Market Review: A Critical Indicator

One of the more critical indicators of market health is the volume of distressed property sales. This an area where the numbers show the biggest improvement. The number of distressed property sales in 2013 was 29% of the market.

Berkeley-Jefferson County, WV Real Estate Market Review - 2017Distressed properties are made up of short sales and foreclosures. Foreclosures dominated the market as the recession of 2008 became the dominate factor in home sales. By 2010, short sales entered the market in volume and created a second wave of bad news for local residents. The change from 2013 to 2017 has been dramatic. Current distressed property sales are down 24% since 2013. The local market has settled into a pre-recession norm of about 5.5% across both markets.

Another positive indicator of market health is days on the market. The days on the market have not changed a single digit in 5 years. Days on the market were 76 in 2017 and they were also 76 in 2013. The middles years drifted back and forth between 93 DOM in 2015 to 89 in 2016, but those changes are small. As long as inventory doesn’t become a challenge for the local market, the Berkeley-Jefferson County, WV real estate markets are set for a banner year in 2018.

When you’re ready to sell or buy a home in the Berkeley-Jefferson County, WV real estate market, give Cornerstone Business Group, Inc., a call. We are your local real estate sales pros.

Loudoun County, VA Real Estate Year in Review – 2017

Loudoun County, VA Real Estate Year in Review – 2017

The Loudoun County, VA real estate market ended 2017 with a consistent pattern of positive results. Loudoun County, VA is the third most populated area in Virginia. The current population has grown to over 385,000. The average income in Loudoun County is approaching $120,000+. The population and income levels are reflected in the real estate statistics for 2017.

Loudoun County, VA Real Estate Year in Review: Positive Numbers

The Loudoun County, VA real state market saw 5000+ sales in 2017. Compared to some of the County’s neighbors, that is an incredible number. The Winchester-Frederick County, VA total sales for 2017 was 1745. Loudoun County’s immediate western neighbor, Clarke County, VA saw 210 says in 2017. The volume of sales is just one of the many positive numbers for the county.

Sales Prices are Increasing

The average sales price in 2017 was $508,571. That is a 6.7% increase from 2016. Loudoun County, VA Real Estate Year in Review - 2017Realtor.com predicted a 3.9% nationwide increase year to year in 2017. Loudoun County, VA with its proximity to the metro-D.C. area has a certain level of insulation from market drawbacks and price slowdowns. The area price appreciation over the past five years has increased 12.3%. Homes in the state of Virginia have appreciated 4.76% statewide for the past year. Again, that puts Loudoun County, VA ahead of the average both nationwide and statewide.

Another market predicting number is days on the market. The Loudoun County, VA real estate market is very steady in this category. From 2013 to the present, the market has not deviated a single percent. The 2013 DOMP was 38 days, and the 2017 DOMP is 38. Only 2015 (58), and 2016 (51), saw any minimal change in that number, and both years were marginal and not strong predictors of the market health.

Loudoun County, VA Real Estate Year in Review: Distressed Properties and Market Health

Loudoun County, VA Real Estate Year in Review - 2017The number of distressed property sales in 2017 were 245. Lower distressed property sales are also a good indicator of market health. In 2013, distressed properties sold were 598, 2014 were 264, 2015 were 337, 2016 were 322 and 2017 at 245. That is a number that is heading in the right direction with 2015 being the only anomaly over the past five years.

Distressed properties are made up of short sales and foreclosures. When a neighborhood has a number of these properties, property values drop at no fault of the other homeowners. As those numbers decline, property values stabilize and homeowners can demand a more market based value for their homes. Anytime distressed properties are included in the equation, market values will be skewed lower and true property values are masked by their presence.

Loudoun County, VA Real Estate Year in Review: Inventory

Market inventory has become the 800 lb gorilla in the room for much of the nation. The Loudoun County market has 545 available homes as of January 1, 2018. Low inventory has a circular effect on local markets. Sellers don’t list because there is no where to move to, and buyers can’t buy because there is nothing to buy. As long as the market stays healthy, and buyers and sellers move about with freedom, the 2018 Loudoun County market looks poised to have another banner year.

When you’re ready to buy or sell in Loudoun County, VA, give Cornerstone Business Group, Inc. a call. We are your local real estate sales pros.

Buy with Cornerstone and We’ll Pay for Your Home Inspection Report

 Buy with Cornerstone and We’ll Pay for Your Home Inspection Report

When you buy with Cornerstone Business Group, Inc., we’ll pay for your home inspection report(*certain conditions apply). That’s right. A home inspection is a critical part of a home sale. A home inspection checks the systems in a home. That will include the electrical, plumbing and heating & cooling systems. Home inspectors also check the roof, foundation and overall construction.

All inspectors who work with Cornerstone Business Group, Inc., also check all appliances, water heater, water softener (if there is one) and crawl and attic spaces. They check the home’s insulation, exterior door seals and if the windows open and close properly.

Home Inspection Report: The process

Buy with Cornerstone and We'll Pay for Your Home Inspection ReportA lot goes on during a home inspection, and every buyer should have one before completing a home purchase. After a contract offer is accepted by both sides, the home inspection is scheduled. It typically happens within 10-14 days after ratification. It is always a good idea for a buyer to attend the home inspection. When the inspection is complete, the buyer has the option to ask for repairs, to accept the home as-is, or the buyer may walk away from the deal if the report shows things the buyer is not willing to accept.

Negotiating the report

If the buyer chooses to stay in the deal, the buyer and the buyer’s agent may create a Home Inspection Removal Addendum if there are repairs that need to be negotiated. At that point, the seller can accept the repair request, accept some of the requests or the seller may walk away from the deal. Most of the time, the buyer and seller come to an agreement for some, or all, of the repairs to be done. On occasion, no repairs are made. No matter what, both sides need to agree in writing.

If home inspection repairs are done, a buyer may want to have them re-inspected to make sure they were done correctly. The seller will give paperwork to the buyer’s agent or closing agent to confirm that the repairs have been paid for and nothing is hanging at closing. On occasion, the repairs will be paid at closing from the seller’s proceeds. Regardless, the buyer should confirm that the repairs are complete and done correctly before closing.

If you buy through Cornerstone Business Group, Inc., *we’ll pay for your home inspection report on any property that goes to closing and is priced at or above $200,000. Home inspections are paid at the time of the service, and they typically cost $325-$500. You can avoid that out-of-pocket expense with Cornerstone. When you’re ready to buy, give Cornerstone Business Group, Inc., a call. We are your local real estate sales pros.

 

*The property must go to closing, and the sale price must be at or above $200,000. This applies to one sale and one closing at a time. If the sale collapses prior to closing, the buyer will be responsible for the home inspection costs.