Property investment is seen as a rewarding opportunity globally, as someone is always willing to buy it down the road. Therefore, it is widely believed that property investment has the potential to stem a good return on investment.
The first thought that occurs when people think of property investment is about the location. Investors look to put money into a property located in a city with favorable weather, ideal transportation, proximity to hospitals, health care centers, and other essential services, and diverse entertainment attractions. People are ready to sell their homes when they possibly have to relocate to a new area, city, or country for any reason. It may be because the property owner has a queued-up work opportunity across the country, or maybe he is nearing retirement age and wants to move into a laid-back city. This is a time when signs for sell your home fast in Tennessee or any place around the interested location catches the property seekers attention!
Mount Juliet, Tennessee, has all the above features topped with the fact that it is a tax-friendly U.S. state. This place attracts retirees as the property taxes are relatively low, and retiree property owners don’t have to pay state income tax.
When it comes to selling a house, people mainly choose two ways to do it: through real estate agents and “FSBO” or “For Sale By Owner”. The goal is to market the property as soon as possible. Let’s learn about “FSBO” in detail below.
What is FSBO or For Sale by Owner?
Property sellers take the FSBO course to save 5 to 6% of the sale price that goes to a real estate agent when he is employed for the home selling task. Irrespective of the risks involved, this home sale represents 7% of all sales.
Now, the question that might be coming to your mind: what is FSBO?
This type of sale involves a property that the owner directly offers for sale rather than through a real estate agent. The primary reason why people take this route is to save on commission costs. In doing so, the property owner has to take overall responsibility for transaction, which are as follows:
- Research property values in the area and neighborhood to dictate the asking price. One has to consider similarities in the property features to put the comparison.
- Repair the property of any damages to enhance its resale value.
- Handling property marketing efforts like advertising, online listing, listing the home in the MLS or multiple listing services.
- Hosting an open house or showing the property to prospective buyers.
- Upon deal finalization, negotiate for sale price and terms.
- Arranging legal documents like sales contracts, occupancy agreements, residential property disclosure forms, and more.
- Assembling the deed and ensuring it is signed, witnessed, and notarized.
- Ending the sale that might occur in a title company or real estate office.
The next section is dedicated to the most commonly found confusion in the real estate industry.
Real estate agent vs realtor
Real estate industry has names and titles that can be confusing to many. Like, people often use real estate agents and realtors interchangeably.
First, let’s talk about realtors; these are deemed as members of the professional real estate association called NAR or the National Association of Realtors. These professionals are federally registered collective members who subscribe to the code of ethics lined by NAR.
Conversely, real estate agents are individuals who are licensed by their state to aid property owners in buying or selling properties.
Another way to put the difference between the two is that realtors are real estate agents who have chosen to hold NAR membership. Realtors can benefit from professional training, tools & data pool to offer their customers a professional experience.
Reasons to hire a real estate agent
While it is appealing to take home for sale job in hand as opposed to paying commission to the real estate agent or consultant, the risk involved is significant with the seller giving up on the professional real estate service that can help him get the best results. Real estate agents have the network and resources to put a correct price on a property, market it, and handle the paper workload required for a home sale.
Here are a few essential factors why you need a real estate agent to sell a house.
- There is no emotion involved in the sales.
Selling a home can be a sensitive experience for many. Hiring an agent enables a property owner to make a reasonable decision, preventing them from taking everything on a personal level. For instance, as an owner, there are chances for you to get offended by a low offer, but a real estate agent understands the vulnerability in the situation, especially if there is a deadline involved.
An agent can access feedback and derive positive outcomes from it to get the best results in the end.
- Real estate is a full-time job
Dealing with responsibilities that come with property selling goes beyond the 9 to 6 timing. Can you handle the FSBO set-up with your work or business? For instance, can you hold a meeting when a potential buyer rings you up? We assume your answer would be no. It is hard to bring quality leads, let alone manage the after process of a real estate transaction. However, it is not the same for agents, who do a proper 9 to 6 job around your home buying or selling requirements.
- Real estate agents have an extensive network.
Say you have successfully listed your property on MLS, which any real estate agents would do. But what after this? This alone can’t bring you good leads or prospective buyers.
Real estate agents have an extensive network in the industry that connects them to buyers, real estate agents or realtors, and real estate agencies. In the agent’s absence, owners might need to wait a long time to close the deal or settle down with a lower-than-expected price.
A real estate agent lets the word spread about the home for sale quickly.
- They can successfully remove unqualified buyers.
They are trained professionals to pick quality buyers from the crowd. To determine the seriousness, they ask qualifying questions to prospects to identify their motive. FSBO sellers don’t have these skill sets, which causes them to waste time on the wrong people, eventually translating to a prolonged closing time.
- They are well-decked with price negotiation skills.
Price negotiation for homes takes unique skill sets, which are available with real estate agents. This ability comes with negotiating thousands of home purchases and sell-outs. FSBO sellers are often emotional about the process, which hinders their decision-making.
Likewise, FSBO sellers can’t get familiar with the market as efficiently as real estate agents. Agents understand the market in-and-out and factors that drive market demands, which assists owners to stay ahead in the game.
If you are ready to market your property, it is imperative for you to take care of a few factors to sell out your property quickly. These factors are as follows:
- Start with hiring a real estate agent to allow a seamless transaction.
- Consult with the agent to put competitive pricing or terms and conditions adjustments if you experience low interest in the property.
- Ensure the property is repaired and cleaned before the showing to allow the prospect to picture themselves in your property.
- Ensure you make the first impression with your property that prospects get attracted to at first glance. For instance, re-paint the property or make the property’s garden look neat and welcoming.
- Offer conditions or terms to make the deal look desirable to the buyers, like paying part of the closing cost.