Listing Courtesy of KELLER WILLIAMS REALTY
You pronounce it “FIZZ-bow.”
That’s FSBO: For Sale by Owner, and it’s the Road Less Travelled by area homeowners bent on selling a home in Georgetown as economically as possible. It does seem to make common sense, after all. It’s the homeowner who knows the ins and outs of their own home best—so who could be more qualified to show it off to the buyers who’ll be lined up, waiting to take a look?
And even more to the point, why lose any part of the sale proceeds to some Georgetown real estate agent? It can’t be rocket science to fill out the paperwork and complete the sale. Isn’t that just common sense?
For those considering selling a home themselves, even cursory research is likely to result in one nagging question. The latest sampling from the NAR shows that the vast majority—88%, in fact—of today’s successful sellers are assisted by a real estate agent. That proportion has been growing, lately, too: it’s up 19 percentage points since 2001. This has to give rise to the nagging question: “If it’s common sense, how come the vast majority eventually wind up going with a real estate agent?”
What actually happens in a sale plays a large part, starting with an examination of the bottom line of actual sales. It reflects the fact that the customary commission percentage that goes to real estate professionals is split in two, with half going to the seller’s and half to the buyer’s agent. So the net “savings” a FSBO seller stands to realize is half of the usual initial assumption when the buyer is professionally introduced by the buyer’s representative.
Unless the buyer just appears on his or her own.
Which brings up a couple of other potential problems. If the buyer shows up on the seller’s doorstep, who has qualified him or her? (Short answer: nobody). It’s awkward and practically impossible for a homeowner to interview every prospective buyer in depth before showing the home, but having strangers in your Georgetown house with no outside record of the event is at best an iffy prospect. The fact is, most qualified home buyers see the advantage of teaming with a licensed Georgetown real estate agent, whose market knowledge is up to the minute, and who will assist them every step of the way at no cost to themselves. Those qualified buyers stand to be a FSBO’s likeliest prospects, in which case the potential ‘savings’ from a do-it-yourself strategy are halved.
But as a working reality, FSBO sellers run a substantial risk that those hoped-for calls from active agents may be slow to materialize. It is often the case that local agents, noting that the home is a FSBO, place it low on the list of properties their clients have time to tour. Among other indicators, a FSBO listing on the MLS signals to the Georgetown real estate community that the owner is not truly serious about selling the home—else why is it not part of a professional office’s marketing package? Too, buyers’ agents work to protect their clients from difficult situations, and many FSBO sellers are not well-versed and experienced in negotiating and selling houses. Problems can erupt. All things being equal, it means that FSBOs get few showing requests.
Plus, any advertising costs will be paid for out of the owner’s own pocket—an expensive strategy.
It’s pretty clear why almost 9 out of 10 homeowners selling a home go with a qualified real estate agent. I hope you agree—and decide to give me a call/text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
If you’ve ever had the kind of neighbor who is apt to borrow something (like your hedge trimmer), only to later complain about how it performed, you know how much patience it takes to hold your tongue. The Mortgage Bankers Association would be justified if they felt that way about me: I read their website, and sometimes quote it in posts about current Sussex County mortgage rates—but it sure makes for dull reading!
Anyway, with apologies to their (undoubtedly hard-working) writing staff, last week’s blog about national mortgage rates was as numbers-heavy as usual, yet still held a contradiction…but one that actually makes perfect sense. It also flags what could be seen as a bellwether that Sussex County home buyers and sellers would be hard-pressed to ignore.
The apparent contradiction was that mortgage rates were on the increase: national mortgage rates for 30-year fixed loans rose to 4.17%, which is the highest they’ve been since November. This is for conforming loans; the jumbos (greater than $417,000) went north as well, up to 4.15%.
As everyone knows, low mortgage interest rates are terrific for our Sussex County residential home sales. The low monthly payments that they create make homeownership more affordable for a greater number of buyers. So when rates increase and monthly payments go up, it should create a drag on the market. The apparent contradiction in the MBA release was that the increase in rates was accompanied by an increase in mortgage applications. And it was a big one: up 8.4% from the week before.
Most commentators were united about the phenomenon, and it’s hard to disagree. In addition to the natural surge that comes with the season (spring and summer are always expected to be quite active), consumers are seeing the uptick in mortgage rates and suspecting that rates will head higher. That’s nudging them to action, causing them to jump in now, while rates are still attractive—especially compared with historical averages.
CNBC’s Diana Olick agreed that such sharp increases actually help the home-buying market. She quotes one lender’s take about the buyers: “They understand that ‘wait a minute, rates are at an all-time low, let’s react now, let’s react before they go higher.’”
It’s far from a certainty that rates will continue to take off. Lots of us remember last year, when almost all the experts predicted a rise, yet mortgage interest rates headed in the opposite direction…and stayed there! But you can hardly blame area buyers if they go with the national trend and decide that locking in today’s rates is a prudent move: it’s a bird in the hand.
If you have been thinking along the same lines, I hope you will give me a Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.