What is the Best Day and Month to Sell Your Home?

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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.

 

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10 Reasons Selling Your Home By Owner is a Bad Idea

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.

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Beware of Discount Brokers

As a home seller, typically your net profit is one of the most important goals when selling your home. Many prospective home owners interview more than one real estate broker prior to choosing one. Sometimes, a home owner may be persuaded to hire another Realtor that agrees to reduce their commission.

I understand that looking at this appears as this would save you a lot of money. I would agree that sounds great up front but let me express my concern you should be aware of. If you look at all the homes on the market, and look at the number of homes that have sold, there is quite a difference. It is one thing to list your home for sale, another to sell it, and another to close the transaction.

I have a question to propose… If your home is offering less money to agents who show your home, and another home that is close in square footage and similar floor plan to yours is offering the agent a bigger commission, which one are they going to show? The one that offers them the most money.

This is no different from you going to work and being presented with two jobs that are identical, take the same amount of time and effort, and yet one pays more than the other. You would take the one with the most pay just like the Realtors. Right?

Another thing to consider is do you think a Realtor who is willing to reduce their commission by 1%, or 33% of their gross profit without hesitation is going to fight for your profit and help you maximize your proceeds?

Make sure you look at everything the Realtor is presenting including a well-documented marketing strategy and proposal and proven market experience. It is important that you do not get blinded by an upfront reduction in commission because you only pay a commission once your home sells and closes for a price and conditions that you desire.

When you hire the Duneske Real Estate Advisors, you will get first class service from listing to closing. Being one of the top agents in the area, we have proven and repeatable strategies to help our clients maximize their profits while minimizing the inconvenience of having your home be on the market in show ready condition. I would encourage you to visit http://www.AwesomeHomeTour.com and see the 3-D technology we can do for our home sellers. This technology has proven to get our clients more for their home, reducing number or showings and reducing the number of days on the market.

It is important you know; we are here to help and please contact me anytime at (248) 939-9393 to discuss your real estate goals.

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Thinking of Selling? 5 Reasons You Shouldn’t FSBO

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In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO).

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Here Comes the Housing Inventory!!

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Almost every real estate conversation revolves around the continuous rise in house values over the last four years. Some have even mentioned a concern about another possible bubble forming. However, the recent increase in prices can be attributed to a very simple principle: supply and demand.

DEMAND

Demand for single-family housing has continued to increase as the economy slowly moves forward. Recent surveys have shown that over 80% of each generation still believes that homeownership is a part of the American Dream. And a recent Gallup survey showed that Americans believe that real estate is the best long-term investment.

SUPPLY

Over the last several years, many homeowners were unable to put their homes on the market for an assortment of reasons (family finances, no or limited equity in the home). There has been a pent-up supply of sellers who have wanted to move but couldn’t. Below is a graph depicting the number of years families have historically stayed in a home. We can see there is pent-up seller demand.

Here Comes the Housing Inventory!! | MyKCMAs the economy improves and more families reach the point of significant equity (20%), we will see these homes come to market. As supply then matches demand, the acceleration of home price increases will begin to slow.

Bottom Line

If you are one of the families that have been chained to your current home over the last 5-7 years, now may be the time to break free and find the home of your dreams.

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Harvard: 5 Reasons Why Owning A Home Makes Sense Financially

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We have reported many times that the American Dream of homeownership is alive and well. The personal reasons to own a home differ for each buyer, but there are many basic similarities.

Eric Belsky is the Managing Director of the Joint Center of Housing Studies (JCHS) at Harvard University. He authored a paper on homeownership titled – The Dream Lives On: The Future of Homeownership in America. In his paper, Belsky reveals five financial reasons why people should consider buying a home.

Here are the five reasons, each followed by an excerpt from the study: 

1) Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2) You’re paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.” 

3) Owning is usually a form of “forced savings.”

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4) There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5) Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition. 

Bottom Line

We realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially. If you are considering a purchase this year, let’s get together and evaluate your ability to do so.

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5 Reasons To Hire A Real Estate Pro

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Whether you are buying or selling a home, it can be quite an adventurous journey. You need an experienced Real Estate Professional to lead you to your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can For Sale by Owner or FSBO.

The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but have rather been strengthened due to the projections of higher mortgage interest rates & home prices as the market continues to recover.

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions, are to make sure that you acquire your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible) to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.

4. What is the home you’re buying/selling really worth?

It is important for your home to be priced correctly from the start to attract the right buyers and shorten the time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to the National Association of REALTORS, “the typical FSBO home sold for $208,700 compared to $235,000 among agent-assisted home sales.”

Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

There is so much information out there on the news and the internet about home sales, prices, and mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?

Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line

You wouldn’t replace the engine in your car without a trusted mechanic. Why would you make one of the most important financial decisions of your life without hiring a Real Estate Professional?

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