Category Archives: Strategy

FSBO: Why It’s Not So Hard to Sell Your Own Home; Then vs. Now

Don’t believe everything you hear!  It could cost you tens of thousands of dollars!

Flat Fee MLSIn the old days FSBO’s (For Sale by Owner’s) couldn’t list their properties in the MLS and that alone was a huge disadvantage.  Today sellers have access to many Internet tools, especially List2Move’s data base driven MLS Machine where they can not only gain access to the local MLS, but have full control over their listing 24/7.  In fact, they have more access to their listing than most sellers do with a full service agents!  Ouch! Continue reading

Why selling home by owner makes so much cents!

Selling by owner has evolved to the point where it is taking market share from traditional brokers.  Why, you might ask?  Because it has gotten to the point where it is easy!

Let’s face it….

  • You’re going to show your property either way and in many cases, while your agent is out getting new listings or at their kids softball game, you are going to open up.  And it’s hard to hide when your face to face with a buyer.
  • You’re going to negotiate either way, but you already know what your bottom line is and not having the overhead of a middleman can put you in a much better competitive position to negotiate.  It is all about dollars and cents here.  If you have more to work with you are simply in a better position to negotiate.
  • The forms are just fill in the blanks so most people know where to put the price offered and the closing date.  This isn’t rocket science especially when help is a phone call away, if you are with List2Move.com
  • Qualifying buyers is as simple as asking them, “have you been to the bank?” and finding out where they bank.  That’s what the pros do before they let anyone in the house.

The bottom line is….

In order to compete with the “full service” Realtors you need access to their local tools and only List2Move.com can get you there through it’s patent pending MLS listing machine.  Give yourself the edge for a fraction of the cost and list your property on List2Move.com.  If we don’t have an affiliate where you list we will interview a like minded broker who will assist you!

 

 

Flat Fee MLS in Rochester NY

List2Move.com has been doing Flat Fee MLS in Rochester NY now for over 7 years and their business philosophy hasn’t changed from day one;

“if you give homeowners the same tools as the professionals, they will succeed.”

When we started years ago there was only one other company doing flat fee and they were doing it for over a thousand dollars.  We hit the market using technology and the Internet and at a fraction of their cost we put them out of business.  We developed systems to eliminate the middlemen in the equation which equates to big savings.

The founder of List2Move.com delivered a talk to the the NYS Bar on New Business Models in real estate in 2006. Continue reading

Don’t Confuse a Repair with an Improvement

We get these questions all the time.  Should I replace windows, roofs, garage doors etc… My response is usually, “if it is not broken, don’t rebuild the house!”  For Sale by Owners should always use common sense!  If the window is broken you can replace the glass but you don’t have to replace the fixture.

 

From Investopedia.com.

Unfortunately, not all home expenses are treated equally for the purpose of determining your home’s basis [for tax purposes]. The IRS considers repairs to be part and parcel of home ownership –something that preserves the home’s original value but does not enhance its value. This may not always seem true. For example, if you bought a foreclosure and had to fix a lot of broken stuff, the home is obviously worth more after you fix those items, but the IRS doesn’t care — you did get a discount on the purchase price because of those unmade repairs, after all. It’s only improvements, like replacing the roof or adding central air conditioning, which will help decrease your future tax bill when you sell your home. For gray areas (like remodeling your bathroom because you had to bust open the wall to repair some old, failed plumbing), consult IRS Publication 530 and/or your accountant.

Infra-Structure Matters

When you are looking at flat fee brokers do yourself a big favor, check out their websites…Do they look like a fly by night or do they look like they are entrenched.  You will know the difference in a New York second.

Look for things like photos, owner’s phone numbers, enhancements, open house flags.  Do they offer featured listings, mortgage calculators, maps etc.

If you think that all flat fee brokers are the same think again!  There are those brokers that are me too brokers and there are brokers that are the leaders in their market.  Stay away from national companies that can’t tell you who the local guy is.  These companies farm your listing to the lowest bidder, and you are smarter than that, it will be a bad experience because neither care about your experience.

Line up yourself up for the best For Sale by Owner experience and find your self a broker who is entrenched.  List2Move prides itself in it’s infrastructure.  Go with the Flat Fee FSBO leader in Rochester NY.  List2Move.com

You need to be in front of the Buyers!

Are you marketing to all the buyers?

There are only 4 types of home buyers!

1. The buyer in a hurry.   This is a buyer that is ready to buy today! They may be moving to this area because of a job transfer, or have already sold their present home and need to find another one fast, or they may just be the kind of people that like to make quick decisions.  These buyers are typically pre-qualified with a lender and almost always work with a Realtor.  They don’t have time to drive all over town trying to track down a home to buy.  Since 97% of the homes for sale are listed with Realtors, these buyers know it’s just easier to get help from a Realtor.

 

2. Those Not in a Hurry.  This type of buyer is serious.  They may be first time home buyers, or have just recently put their current home on the market, but don’t have a buyer lined up yet.  This type of buyer is also prone to working with a Realtor.  They THINK that working with a buyers agent doesn’t cost them any money and if they are first time home buyers, they may feel helpless and need someone to walk them through the process and protect their interests.

 

3. The Investor.   This type of buyer is looking for a steal.  Their idea is to find someone that’s desperate to sell so they can buy the home at a steep discount.  This type of buyer is almost never pre-qualified with a lender so you’ll never really know if they can actually afford to buy your home, but they’ll tell you it’s not a problem.  If you advertise your home on Craig’s List, you will get calls from the Investor.

 

4. Tire Kickers.   This type of buyer is a time waster. They can’t afford to buy because of bad credit or no money, but they won’t ever tell you this.  They like to spend their weekends just looking at homes and wasting your time.  They’ll tell you they love your house and ask all kinds of questions.  They’ll get your hopes up, but after they walk out the door, you’ll never hear from them again.  When you call them, they’ll have some excuse of why they’re “not ready to buy right now” or they’ll say, “We’re still looking”.

Conclusion:

If 97-98% of all the homes for sale in this area are listed with real estate firms, where do you think the serious buyers most likely to go?  That’s right, the MLS or a Realtor or Homesteadnet.com, or List2Move.com or Realtor.com or Nothnagle, or Hunt or Remax…..you get the picture.  POSITION YOURSELF FOR SUCCESS BE WHERE THE SERIOUS BUYERS ARE AND GET ON THE MLS.  List2Move it and get it sold!

Change commissions after accepted offer?

 

One of the requirements for gaining access to MLS as a For Sale by Owner or as any full service real estate client is an offer of commission.  It can be as low as one dollar (as with List2Move.com) but you have to make a blanket offer of commission and it has to be documented in the listing agreement (Contract)!  This “offer” basically says, “if you (a Realtor) bring me an offer that I accept, I will pay you (that Realtor) “x” amount of dollars or percent!!!!  It is contractual, it is specified in the MLS and only Realtors who have access to the MLS database can see it!!!!!   Again, it is contractual because we are dealing with money….which should make cents, right?

 

Negotiation of the commission can only happen before the contract is signed!

 

Real life story….

I got a call this morning from an agent who has an accepted offer with a seller.  She tells me that the seller who is offering 1.5% says they are going to pay less because the buyer came in before they put the home on the MLS without a Realtor, however, the contract was drawn up by a Realtor with the Realtor’s name on it naming the Realtor’s company as the procuring cause of the sale.

I looked up the offer of compensation on our listing agreement, and it read 1.5%.   Seller didn’t renegotiate with Realtor before accepting the offer and therefore, most likely, the Realtor will be paid the full 1.5% commission.

Earnest Money Control

Yesterday I got a call from one of our Rochester, NY For Sale By Owner clients.  He was asking questions about the earnest deposit money that a buyer “traditionally” puts into an escrow account.

He had a situation where there was a buried oil tank on the property and the buyer didn’t want to go through with the purchase, except the buyer had already signed off on the engineers inspection.

So to make a long story short the buyer wants the seller to pay the $4-5K to remove and replace the tank and the seller doesn’t want to nor feels it is part of the contractual agreement.  Chances are the buyer will walk (but could also be in breach of contract) but what happens to the $10k sitting in the escrow account?

First of all, earnest money (Earnest Money) is NEGOTIATED up front!  Where it is kept it is spelled out in the purchase and sale contract!!!!!  Sellers should always take delivery of the down payment and it should be sitting in your attorney’s escrow account! You ask why?  Control You want to have control of that money for situations like this.

In this case the money is sitting in the buyers agent’s escrow, and even though the sellers would have to sign a release for the buyers to get it back, control of the money could be 9/10ths of the law…

1. Always review the contract with us before you sign it.

2. Always have your attorney look at your purchase and sale contract before you sign it!

3. Always make sure you have control over the escrow monies!

For Sale By Owner using Realtor’s tools in Rochester, NY

Sellers are saving $1000′s

 

Selling your home as a FSBO or For Sale by Owner in Rochester NY is so much more efficient than it used to be, thanks to List2Move.com.    Today any For Sale by Owner of any type of property can tap the most efficient selling tool available to any real estate professional, all from their home computer and not have to pay the big commissions to do so!!!  The tool we are referring to is the number one tool used by all Realtors called the Multiple Listing Service (MLS).

List2Move Open House Sign

Get Listed to Move

So what is the MLS?


It is simply a private database that is shared amongst members, and makes an offer of compensation (which is your money as commissions) in return for cooperation.  It has evolved into the number one marketing tool for bringing buyers and sellers together.  Syndicating of listings through the MLS is mostly automatic…. however, Roxwell Properties in Rochester, NY actually pays Realtor.com to get better placement for it’s customers

 

How does it work?

 

Thanks to List2Move.com property owners going FSBO today have total control when marketing their homes when using List2Move’s proprietary database driven website.   It is a matter of logging in and building your listing.  The last thing anyone does on the site is pay.  That’s  when you go live.  FSBO’s control just about everything when marketing their property; price, status, commissions, public remarks and more without ever leaving their desk!  They are basically their own listing agent after paying List2Move.com for the use of its infrastructure which mirrors the same database used by Realtors.

What makes this efficient is that once the homeowner has input their property information, List2Move.com transfers it verbatim to Roxwell Properties, Inc., who then pastes the data, including photos into the Multiple Listing Service.  The listing is then syndicated to hundreds of websites, including all of the major real estate portals including, Homesteadnet.com (Rochester, NY), 2Findyourhome.com (List2Move Buffalo), CNYRealtor.com (List2Move Syracuse),  Realtor.com (America’s largest national real estate website).  And because local brokerages have what they call an IDX agreement which allows brokers to market other brokers listings, your listing shows up on all the local real estate broker’s websites as well.  This includes Re/Max, Century 21, Prudential, Nothnagle,Hunt Realtors. and more  This gives For Sale by Owners a huge advantage.

The other major advantage of getting on the Multiple Listing Service using this Flat Fee MLS service with List2Move, is that you only have to offer a dollar to a cooperating brokerage.  That means you can still have all the benefits of being listed in the Realtor database for virtually nothing!  The exposure is humongous!  You can always offer more to a buyers agent, it is totally up to you, but having the control over the commissions, is something customers really like.

Real Estate Rebate Check Cut in Pittsford, NY-Just Smart

Last month we cut our first rebate check of  the year!  Buyer bought a $265,000 home and got a sweet rebate check of $3975.00 after closing!

Not something you see everyday!  A real estate broker coming to your door with a check for thousands of dollars!

These people worked the system so well on both ends of the deal that they saved over $10,000 in commissions easily!

If you are buying, you are going to a lot of the work yourself so why not get paid to do it?  It is about savings, it is about keeping your money, it is about being smart.