If you are thinking of selling your home by yourself, this decision can be difficult at times and can be a long process. There is a lot more to it than just sticking a  for-sale sign in the front yard. Let us help you through the process and help avoid some of the pitfalls awaiting you.

Will you save money by eliminating some real estate commissions?  In most cases, yes. But, be forewarned… The licensed realtors that we work with (see our preferred partners) have a good understanding of the real estate market here in New Mexico and all of the procedures that go along with completing a sale. This, of course, has taken years of education, experience, and time in learning to show property, negotiate, handling all of the mountains of paperwork and closing the transaction. This can be an extremely laborious and time-consuming endeavor, which can further compound itself if you have a full-time job that commands your attention.

With the advances of the internet there are more and more companies out there telling you how easy it is to do it yourself, so just be aware.  You have options.

Let’s face it….buying or selling assets worth hundreds of thousands of dollars isn’t the same as buying or selling your Grandmother’s china on E-Bay.  But, that doesn’t mean that independent sellers can’t be resourceful and enlist the help of professionals who have both experience and useful know-how to get the job done.

Surround yourself with people who understand the real estate and mortgage process ….that is where we come in.

Having said that…   Now that you have decided to sell your home and enter the competitive world of selling real estate, let us show you how we can help.

PLEASE CLICK ON THE FOLLOWING IMPORTANT SUGGESTIONS TO ASSIST YOU IN THE SELLING OF YOUR HOME:

• PRO’S AND CON’S OF FSBO’S
• THE APPLICATION PROCESS
• SETTING THE PRICE
• MARKET VALUE
• SELLING A HOME…TWO MORTGAGES (MOST IMPORTANT)
• MOVING

PRO’S and CON’S OF FSBO’S

THE GOOD SIDE:

Here are some reasons why many people choose to sell their properties on their own rather than using a real estate agent:

1. The main reason to sell your home "By Owner" is to save commission costs (3 to 6%).
2. You are in control to whom and when you "Show" your home.  This means doing it at your own convenience, a far cry from rearranging your schedule to suit the real estate agent.  Additionally, your property does not have to be in "Show" condition every morning before you go to work.
3. Who knows more about the property than yourself.  You know your home, the subdivision, the neighborhood, the schools, bus routes and traffic times, etc.  This means you can "Show" and "Sell" your home more effectively and more honestly than anyone else. You will remember to point out that new skylight you installed or the expensive landscaping that you spent hours on. A real estate agent won’t necessarily know all this information about your property and the area. 
   
4. You are not obliged to a 3, 6, or 12-month contract. There are many proponents of FSBO sales, including the vast multitudes of online real estate companies dedicated to helping owners list, market, and sell their properties.  It appears questionable to us how an on-line company in Miami, Florida can understand your own particular situation in Albuquerque, NM.  Basic information is fine but not necessarily a substitute for personal attention.

 Real estate agents sell homes…. handle the advertising, take the phone calls, do the showings, have overhead expenses and generally work very hard for their commissions.  But for all that money, many people feel it's worth trying to do it on their own.  Also, many people choose to go the FSBO route because they have a strong desire to be actively involved and control the selling process.

THE DIFFICULT SIDE:

FSBO is not for everybody, especially if have relatively little knowledge about selling real estate.  Unless you’re willing to invest some serious time and energy simply researching and understanding the many real estate resources online (or more personally by contacting one of our preferred partners) then you’ll come across many pitfalls in your sales attempt. 

Generally, selling FSBO is a time-consuming and laborious task particularly if you have a full-time job that you also have to consider.  That is why the bulk of sellers choose to go with real estate agents since they already have the know-how and the connections to make the selling process relatively smooth and easy. 

According to the National Association of Realtors (NAR), up to 80-percent of FSBO sellers will end up choosing a real estate agent and listing their home on the MLS, usually within 6-8 weeks.  But….there is that 6-8 week period and your home may not be average.

THE APPLICATION PROCESS

You will be receiving, hopefully, many phone calls or knocks at the door inquiring about your home.   Some will be serious prospects, some tire kickers and some just trying to sell you something.   It just kind of goes with the business.  If they are really serious, then one of the first things that they will need, and that you need to know about, is their ability to obtain a loan to purchase your home.  We have found that nearly every prospective purchaser believes that is not a problem.  Unfortunately, after 30 years of helping families obtain housing we have found that is not always true.  Right now, in the middle of 2006, in New Mexico, we are seeing a rise in foreclosures and delinquencies and a tightening of credit underwriting guidelines.   This is where your NEW MEXICOMORTGAGEMAN  and Falcon Ridge Fianacial can help.  We understand the programs that are available.   All you need to do is to refer them to us for immediate contact and we will begin the application process to obtain a pre-approval (not a pre-qualification).  We will stay in touch with you and keep you informed so that you can make your plans.

NEWMEXICOMORTGAGE MAN

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SETTING THE PRICE:

The single most important thing you can do is to establish a realistic selling price.  FSBO sellers often make the mistake of pricing their property either to high or too low, simply because they don’t do their homework.  If priced too high, there is a good chance of little or no buyer response.  If priced too low, there will likely be an enormous response and the seller may end up taking thousands of dollars less than they should have.

Real estate ads, multiple listing services, multitudes of internet web-sites, a market analysis and what your neighbors up the street sold their home for, are all starting points for you.  One of the best ways to find a realistic price is to step up and see one of our preferred partners licensed appraisers.  The appraisers experience can play a huge factor in the final valuation of your property.  Their track record and knowledge of the industry is vital to coming to the right price for you to sell your  home.  A professional certified appraisal is not free and will cost you $250-$300 to find out not only what your home is worth but also how much money a lender will loan for a new mortgage.  You may find a willing buyer to pay $300,000 for your home but if he cannot get financing because of an inflated value, you still have not sold your home.   An appraisal will provide you with ACTUAL comparable sales in your neighborhood…not what someone is asking for their home.  Serious buyers, many times, will get one for themselves prior to making an offer on a home.   If it is important to them, it is more important to you.  You will be talking with many prospective homebuyers and if you cannot support your selling price with facts then they may not be back.  An appraisal is something that you can take, literally, to the bank.

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MARKET VALUE

Market value is similar to an appraisal, but it differs because a certified property appraiser does not carry it out. There are many ways to decide the market value of your house, but the most common approach is by comparing your property to other similar properties in and around the same area in the Multiple Listing Service (MLS).  This is known as Comparable Market Analysis (CMA).  Performing a comparable market analysis can help you to get a better perspective of the market value of your property.

Market value can be a tricky concept to explain regarding any products (think of selling your car) particularly when applied to real estate.  In real estate, market value is the price in which a particular property will sell within 60 to 90 days (the general timeframe of how long it takes to sell a property) based on its current condition.  The market value of a property is highly influenced not only on the property’s condition, but also the current real estate market climate, the location of the property, the time of year that the property is on sale, and how urgently the owner wants to sell their home.

A real estate agent, realtor, or broker usually performs a comparative market analysis.  They will evaluate sales of equivalent properties to generate an informal estimate of your property’s market value.  A good estimate of the market value of your home is important when you are selling your home as it will produce a figure that you can work with when setting the initial sale price of your property.

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SELLING A HOME----TWO MORTGAGES ?

MOST IMPORTANT

First and foremost, if you’re selling a piece of real estate that also serves as your primary residence (i.e. your home), timing is of paramount importance.  Selling a home can be tricky because you want to be sure that you have a place to live but at the same time, you don’t want to be saddled with two mortgages.  As a rule of thumb, you should never buy a new home before you’re certain that you have found a buyer for your old home. 

Lending companies and financial institutions are all too aware of this scenario, with most people straining to make both mortgage payments.  If you’re in this situation, you may be eligible for a bridge loan.  A bridge loan is a loan to ‘bridge’ the gap between the termination of one mortgage and the beginning of another.  Bridge loans are given using the same criteria as a mortgage so we can help you out.

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MOVING

To avoid any problems you should always co-ordinate  with the people who are either moving into your old home or moving out of your new one, as the domino effect can easily mess up your schedule. Make sure that everyone commits to a specific window of time and have everything in writing, with financial penalties for anyone who fails to comply with the terms.

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