5 Reasons FSBO Should be a "No"
Louisiana Realtors • January 31, 2019
We have the ability and the resources to do a lot of things that may have been out of our comfort zone a few years ago. Videos on YouTube give you step-by-step instructions on everything from changing your oil to cooking to playing an instrument. However, no matter how ambitious you may be, or how clear the instructions are, there are still some things that are better left to the professionals. Obviously the more complex the endeavor, the more risk it brings. One thing you never want to risk is your home; this why opting to sell it yourself can often be a mistake. So, before you place that “For Sale by Owner” sign in your front yard, here are a few reasons to reconsider and trust this process to knowledgeable, professional REALTOR®.
Buyers Prefer Not to Interact the Homeowner
Home shoppers can be uncomfortable when dealing directly with a homeowner. It makes them feel as if they can’t speak their mind and voice opinions, restricting their home buying experience. This self-consciousness could lead to many prospects declining to make an offer.
Lack of Access to the MLS (Multiple Listing Service)
Most home buyers use the services of a REALTOR®, and REALTORS® have access to the multiple listing service, more commonly referred to as MLS When you sell your home yourself, as a non-agent, you won’t have access to this database; meaning it will be difficult to be found. This greatly reduces the number of eyes and opportunity to sell it.
Paperwork
Real estate transactions are complex, complicated business deals. From the initial offer to the closing table there are immense legalities and obligations. If you are unfamiliar with the process and terminology, this could cause signification issues.
Pricing & Negotiation
Knowlegeable and professional REALTORS® have experience in negotiating on their clients’ behalf, as well appropriately pricing homes. Several variables are considered when determining the right asking price, and this is one of the most important decisions in selling a home. Oftentimes when homeowners attempt to sell their home themselves, they get caught up in personal and emotional connections that can interfere with their judgement and decision making when it comes to the transaction.
Perception of Value
Homes that are for sale by an unrepresented seller, on average, sell for 33% less and spend more time on the market than homes that sold by a REALTOR®. There is a perception that these homes are “on sale”, not “for sale”.
If you are considering selling your home, it is important to trust the knowledge, experience, professionalism, and expertise of a REALTOR®.
NAR’s latest consumer guide, “10 Tips for Unpacking Smartly After a Move,” was developed to help ease the burden buyers may feel when surrounded by boxes. For your clients on the cusp of a move, the guide suggests establishing a priority unpacking order, wiping down each room before unpacking, discarding boxes quickly, having garbage and donation bags at the ready, and more. Share the new guide along with the companion guide “10 Tips for Packing Smartly for a Move.” As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: 10 Tips For Unpacking Smartly After A Move UPDATED : Multiple Listing Services Overcoming Roadblocks to a Sale or Purchase How Solar Impacts a Real Estate Transaction Navigating Interest Rate Shifts Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Check out the next consumer guide on identifying homebuying wants vs. needs.
Thinking about buying a home? Discover how homeownership can help build wealth, increase financial stability, and create lasting value.
From the Louisiana Department of Insurance: During a press conference today with Governor Jeff Landry, Insurance Commissioner Tim Temple announced that registration for the next round of the Louisiana Fortify Homes Program (LFHP) will open at 8 a.m. on Monday, June 1, and will include 3,000 grants. The registration period for this lottery will be open for three weeks, closing at 5 p.m. on Friday, June 19. During the press conference, Gov. Landry signed HB 1187 by Rep. Paul Sawyer, which will allow Louisiana Citizens Property Insurance Corporation to transfer $50 million in additional Katrina bond assessment funds to the LFHP. Combined with the $30 million in funding the program will receive through taxes and fees on insurance entities, the LFHP will receive a total of $80 million this year. “By lowering overall losses, we can reduce insurance and reinsurance costs, draw more insurers into the market, motivate existing companies to write additional policies and lower insurance premiums,” said Commissioner Temple. “That is exactly what the Louisiana Fortify Homes Program is designed to do.” The list of coastal parishes that are eligible to participate is expanding to include Acadia, Jefferson Davis and Lafayette parishes. Additionally, homeowners who live in the portions of Ascension, Calcasieu, Iberia, Livingston, St. Martin, St. Tammany, Tangipahoa and Vermilion parishes that were previously not included in the program will now be eligible to participate. A map showing the full list of eligible parishes is available on FortifyHomes.La.Gov . “Louisiana is the fastest growing state in the country for Fortified roofs, and that growth is not by accident—it is the result of strong support from Governor Landry and legislators like Chairman Talbot, Chairman Firment and Representative Sawyer, targeted program design, and a clear recognition that strengthening homes is one of the most effective ways to reduce insurance losses,” said Commissioner Temple. “At the end of the day, this program is about more than just roofs. It is about protecting families, it is about strengthening communities, and it is about putting Louisiana in a stronger position—both physically and economically—to face the challenges ahead.” To participate in the lottery, homeowners must register during the June registration period. Homeowners who registered for a previous round but were not selected must register again to participate. People who register on the last day of the registration period have the same chance of being selected as those who register on the first day, so there is no need to rush to register as soon as the period opens. When registering, homeowners will need to upload their homestead exemption, insurance policy declarations page that includes wind coverage, and flood insurance declarations page if the residence is in a flood zone. Homeowners who need assistance obtaining a copy of their homestead exemption should contact their parish tax assessor. Homeowners can contact their homeowners and flood insurance companies or agents for a copy of their policy declarations page. Homeowners are required to create a profile in the LFHP system before registering for the lottery and may do so by visiting the LFHP website and clicking the Login button. Homeowners who previously created a profile may use the same one for this and future rounds. Once the lottery registration period closes, the LFHP will randomly select 3,000 participants and send email notifications to registrants about whether they were selected to participate. These selection notices will be sent via email beginning on Monday, June 22. There are several program requirements that homeowners should be aware of before registering. Those interested in the program are encouraged to review eligibility information and frequently asked questions at FortifyHomes.La.Gov to determine whether their home meets the requirements for the program. If selected to participate in the grant program, homeowners will be financially responsible for having the home evaluated by a FORTIFIED-certified Evaluator as well as costs for the roof upgrade including permits, inspections and construction costs beyond the amount of the grant The LFHP provides grants of up to $10,000 for homeowners to upgrade their roofs to standards set by the Insurance Institute for Business & Home Safety. The program helps Louisiana homeowners strengthen their roofs to better withstand hurricane-force winds.
