In school we all learned the Theory of Supply and Demand. When the demand for an item is greater than the supply of that item, the price will surely rise.
The National Association of Realtors (NAR) recently reported that the inventory of homes for sale stands at a 4.4-month supply. This is considerably lower than the 6-month inventory necessary for a normal market.
Every month NAR reports on the amount of buyers that are actually out in the market looking for homes, or foot traffic. As of April, buyer demand has significantly outpaced the inventory over the last six months.
Many buyers are being confronted with a very competitive market in which they must compete with other buyers for their dream home (if they even are able to find a home they wish to purchase).
Listing your house for sale now will allow you to capitalize on the shortage of homes for sale in the market, which will translate into a better pricing situation.
Many homeowners underestimate the amount of equity they currently have in their home. According to a recent Fannie Mae study, 37% of homeowners believe that they have more than 20% equity in their home. In reality, CoreLogic’s latest Equity Report tells us that 72.6% actually do!
Many homeowners who are undervaluing their home equity may feel trapped in their current home, which may be contributing to the lack of inventory in the market.
If you are debating selling your home this year, our team of expert advisors can evaluate the equity you have in your home and the opportunities available in your market. It is important you know that we are here to help.
17 years ago this month, I successfully passed my real estate salesperson license and started a new chapter in my life. It is almost surreal the journey that I have experienced. When I started my real estate career I was living at home with my parents, held three other jobs which were delivering pizza, working as a paid-on-call firefighter and picking up life guard shifts. I was determined to do what it took to succeed in real estate and wanted to make a difference while helping people accomplish their goals.
I have helped 693 wonderful people accomplish their real estate goals whether it was selling, buying or leasing a residential property which has totaled over 153 million dollars in sales. I am proud to say that over 75% of my clientele comes from either referral’s or business from past clients, friends, neighbors and other great people in my sphere.
My business has grown from 2 million dollars in sales my first year to almost 30 million dollars of sales in 2016. I started my career as one man show and have built a team that consists of five amazingly talented, passionate and dedicated licensed professionals who passionately believe in the core values of consistency, value, relationships, expertise and contribution.
I would graciously ask if you could please take a moment to think of the first person who comes to mind that is looking to sell or buy a home this year. Please feel free to call, text or e-mail me your referral if I have your permission to reach out them directly.
Thank you in advance for your trust and keeping me in mind for anyone you know that could benefit from the first-class real estate services I provide. My success is because of your continued trust and referrals.
After 18 years of selling homes in Northville, Novi, South Lyon and surrounding Metro Detroit communities, I meet with dozens of home owners throughout the year and I am asked this question at almost every seller consultation.
Historically, your Summer months (May, June and July) are the busiest months of the year for transactions however we have a few other seasons in our marketplace. For the past three years, the month of October has been the second busiest month for real estate closings for our team and July has been the busiest. The weather plays a very big role in the early part of the year as we have experienced this past January with the unseasonably warm temperatures and this was the busiest month I have had in my professional career with almost 5 million dollars of sales. Before the peak selling season arrives in May, we always experience a “Pre-Selling Season” and this typically arrives in mid to late March as the snow tends to move out of the area and Spring begins to arrive.
I have always been a big advocate for beating the rush of home owners putting their home on the market in the peak season based on the supply and demand principle. We have been experiencing a sellers market for the past few years and the demand has been fairly consistent and when there is less inventory, and demand is high, I encourage home owners to list their home now to maximize their profit. Many of our sellers have been experiencing quick sales under one week and getting top dollar.
When it comes to the best day of the week to list your home for sale, I have seen that Thursday’s have been the best day of the week to list your home. Many home buyers, due to their schedule can’t get in to see a home till the weekend and by listing on Thursday, this allows your home to be distributed throughout the web and multiple listing system while saving a few days on the market giving an increased sense of urgency to buyers wanting to get in right away.
The bottom line is if your thinking of selling your home this year, please feel free to contact me for a no-obligation, private home selling consultation at (248) 939-9393. If your curious to get an estimate on what your current home value is, please visit http://www.HomeValueMI.com . It is important you know that I am here to help and look forward to putting 18 years of experience with over 150 million dollars of successful real estate transactions to your benefit.
In this current real estate market, specifically in Northville, Novi and South Lyon, Michigan, I have discussions with some home owners considering selling by themselves and with no professional representation. Here are ten important reasons how I let home owners know how I can save them time, money, liability and downright hassle.
1. Liability is all on the seller
Everyone makes mistakes. A seller who doesn’t have the representation of a licensed agent pays for those mistakes. Attorneys can close a real estate transaction, but they don’t carry errors and omissions (E&O) insurance.
For an example, if homeowner Sandy lists “hardwood floors” as a feature and the buyer discovers it’s just a wood veneer, chances are Sandy is going to pay for that mistake.
An agent would have either caught the mistake or covered it with E&O insurance. Let’s face it: this is a litigious society, so what homeowner wants to be a target for lawsuits?
This is a litigious society, so what homeowner wants to be a target for lawsuits?
2. Paperwork is daunting
The 2016 National Association of Realtors’ Profile of Home Buyers and Sellers showed that understanding paperwork was one of the most difficult tasks for FSBO’s.
Depending on the state, there are a variety of legal forms that are needed, including but not limited to a sales contract, property disclosures, occupancy agreements and lead paint records.
Sure, ready-made contracts can be downloaded easily enough. But does an untrained seller understand what all that means? Would the seller know how to customize that one-size-fits-all contract?
Understanding paperwork is one of themes daunting tasks when selling by owner.
3. Do you really know who your inviting into your home
Unfortunately we do live in a world that there are criminals who prey on FSBO’s. Do you really know who your letting into your home? I have heard of too many situations of items being stolen or broken during a showing of a FSBO’s home. I have even heard of home owners being held at gunpoint and robbed.
For every showing we schedule for our clients, we verify that the buyers agent is licensed with the State of Michigan and in good standing with our local real estate board. Can you put a price on having piece of mind knowing your home is being shown by a professional.
4. FSBO’s sell for less
In 2016, FSBO’s lost about 16 percent of the sales price with a median selling price of $210,000 (agent-assisted homes sold for $249,000).
Homeowners selling by themselves simply don’t have the time to devote to the process, don’t know the market value, don’t understand market reports and don’t properly market the property.
If the FSBO seller sold to someone he or she knew, the median dropped to $151,900 (because cousin Sue is doing them a favor and expects a deal).
5. FSBO’s spend more time on the market
Unless the seller knows someone who wants to buy the home, FSBO’s take longer to sell than homes listed with an agent. For the same reasons, they can’t get the right selling price.
No one is “behind the curtain” running the marketing show. On average, 18 percent of FSBO’s were unable to sell within their chosen time frame last year.
6. FSBO’s lack representation
There’s no one looking out for the homeowners who sell on their own. They have no one to call if they have a problem or a question. A homeowner with no representation could be out thousands of dollars unnecessarily if not prepared for the many contingencies involved in a transaction.
7. inspections are problematic
Sellers who don’t know the rules can get stuck with unnecessary and costly repairs. Some inspectors will state items need to be repaired or replaced because the code had changed. The truth is if the home was up to code when the house was built, the seller may not be responsible for these changes.
8. Marketing is limited
FSBO’s have limited resources to market their home. The 2016 NAR Profile of Home Sellers showed 42 percent rely on a yard sign, 32 percent rely on friends and family, and about 15 percent use social media.
Relying on the neighbors and Uncle Bob’s second cousin has its limitations. Even paying for the MLS listing won’t be enough because there’s no incentive for an agent to bring a buyer to a FSBO.
9. Hidden costs add up
The mindset for most FSBO’s is saving money. Chances are, these sellers are being nickeled and dimed into a pretty big chunk of change.
They’re paying for a lot of extras: signage, flyers, photography, MLS listing, attorney, home warranty (optional but hard to sell without one), home inspection, a wood destroying pest inspection, credit report for buyers (if applicable), contracts and the list goes on.
10. Time costs the seller money
The biggest cost to a homeowner is their time. You might hear the argument that it doesn’t take an agent that much time to sell a house. And honestly, given the technology at our disposal, that’s true — to an extent.
But it will take a homeowner a whole lot longer. They don’t have the expertise or the access to the resources agents have. What is their own time worth to them? How much time will the seller spend researching the market and contracts? Is the seller going to leave work to unlock the house each time there’s a showing?
FSBO’s don’t have the expertise or the access to the resources agents have. When you add up everything, and way out the pros and cons, I would hope you agree it is worth hiring a professional.