Often I get the inspiration to write from conversations with my clients.  Currently I have listed this beautiful 2/1 on 2111 Forest Circle , and the owner Bob is apparently impressed enough with what I have done so far to share my name with a friend of his who is considering putting his home up for sale.  Thank you Bob!
Anyway, I haven't had an opportunity to speak with this friend of Bob's (which I would welcome), but it looks like he is going the "For Sale By Owner" (FSBO) route. I think this is a big mistake particularly in a buyer's market like we have now.

2111 Forest Circle Orlando 32803

I can think of only a couple of legitimate reasons why someone might choose to "go it alone"their to sell their house.  One would be  and would be if the property was being donated as charity and the other would be a transfer of a home from one member of a family to another who are on friendly terms with each other!  Other than that, I cannot for the life of me think of any other reason why someone would  choose not to use a full time real estate professional- particularly one who doesn't get paid a cent until the property is sold.  

Here are the top rationals  I have heard from FSBO sellers through the years, and my thoughts on each one.

The Living Room- Forest Circle.

•   "I can get more money for my home by selling without a Realtor involved". 

This is simply not so. The typical FSBO home sold for $153,000, the typical salesperson-assisted sold for $211,000 (NAR report, 2010). The difference on average will more than pay for commissions paid to agents used for the sale.  Enough said.

• "Really all I want to do is put a sign in my yard and throw a high number out there to see if I can get it"

 Well it is a whole new world out there.  In the old days, if a seller and buyer both agreed to a price on a property then the banks had a better track record of loan approval regardless of the cost of the home. (part of the reason we are in the mess we are in today).  Even if a FSBO convinces a buyer to put an offer in at a higher price than the house is worth, if the sale is contingent upon loan approval- the house will not appraise and chances are there will be no sale.  A knowledgeable  Realtor has a better chance than a seller of convincing an appraiser of the value of a home based on the "facts".  Also, if an appraisal comes in short, a Realtor will have a better chance of negotiating the shortfall between buyer and seller to try to make the sale move forward.
Besides, buyers are getting wiser.  They are not going to spend money out of their pockets on home inspections, loan applications etc. without knowing that the price of the home was well thought out.  A Realtor can demonstrate to a potential buyer or buyer's agent that the listing price was not pulled out of thin air.

•  "With "discount" fee based brokers I can get my home on the MLS....I don't need a full service real estate company."

 Well this may be true, but getting it on the MLS is no longer the "end all".  For one thing, there are a multitude of websites in which buyers are searching the internet on their own.... places that have nothing to do with the MLS such as Trulia.com, Realtor.com, Zillow.com etc.  Here in our Coldwell Banker office we have a list of hundreds of "web partners" in which a home that I list gets automatically uploaded to many of these sites.....many with "enhanced" listings which would cost an extra fee for a FSBO.   Will a For Sale By Owner spend their time and money to advertise prominently on these websites? Doubtful.  Thus, the pool of potential buyers for their property is greatly diminished. Many fee based brokers get paid up front.  If I list your home, nothing gets paid to my broker until the home sells.

•  "Are you kidding me!  My home is worth WAY MORE than you are telling me! You just want a quick sale."

•  "I don't need a buffer between the buyer and myself....the buyer would prefer to deal directly with me without having real estate agents involved on both sides."

• Properties SOLD is 91% above 15 months ago, and 15% above a year ago. Comparatively to last month, sales are down 25% (which most likely due to the tax credit deadline).
• What looks promising is the PENDING sales data ...which continues an up trend (up 26%) compared to last month despite the expiration of the buyer's tax credit.

Below is a link to an article from the Orlando Business  Journal.  Home sales rose 28% in June.  Not a surprise to me.

As I have been saying for a couple of months now, certain zip codes (32801, 32806) and neighborhoods (Lake Davis/Greenwood, Delaney Park, Thornton Park, ) remain very tight as far as inventory is concerned.  Areas downtown are bouncing back quicker than other areas- for example Winter Park. Yet many downtown Realtors are not doing their homework and continue to price homes BELOW market value...and they are selling fast. Maybe too fast for some sellers.  This really isn't very good for property values. Of course this has been a tremendous opportunity for the buyers I am working with.  But buyers beware, it is supply and demand.  As the inventory tightens in hot areas, your choices may become limited particularly with the low interest rates we have at the moment.
I have set u charts on the side of my blog that pin points specific neighborhoods so you can see the relationship between inventory and list price in your own backyard.  These charts update automatically.  If you are considering selling your home...make sure you know the value in today's market.  Make sure there is strategy to market it properly. Use a Realtor who is a specialist in your neighborhood and has a proven track record of buying and selling in your area. Do not sell yourself short!  Call me if you have questions or if you want to know the true value of your home....today.

Here is the article from the Orlando Business Journal

I ran into one of my favorite "client couples" yesterday evening as I took a stroll around Lake Davis.  These two are extremely savvy and have made great real estate decisions in my humble opinion as long as I have known them and worked with them. From time to time they will find a property and ask my opinion and whether or not it is the right time to buy and/or sell their existing home. I believe that if I am doing my job correctly, and want to be their "Realtor for Life",  I have the responsibility to be 100% honest in all cases....even if my thoughts are not something they want to hear  :).  I try to be "objective" and lay out the facts as best as I can for each circumstance.  This particular couple I ran into last night takes the time to weigh pros and cons, really listens to feedback from myself as well as their lender.  I am fortunate to say that in our history of buying and  selling transactions I do not think they have had a "dud" yet. 

So it got me thinking, how can I help you decide whether or not it is the right time to buy or sell real estate in Central Florida right now?  Of course, every situation is different and needs to be handled individually.  But some general thoughts have come to my mind.

First off, let's think back to a couple of years ago...and the initial emotional reaction that many had when the real estate market took it's mighty tumble.  Here is my analogy:

Have you ever seen a baby right after a huge chewing gum bubble pops on his face? A multitude in every single place, eyes wide, mouth in an "O" - fairly reminiscent of the real estate industry when its personal bubble popped. Homeowners panicked and rushed in a frenzied attempt to sell their Orlando homes.  Why?  Well in many cases there just wasn't what I considered to be a compelling reason other than "OMG I made a bad decision and I have to sell!".  But did you make a bad decision?

All of a sudden a "dream home"  became an unwanted "step child" of homeownership, the real estate market grew to become glutted, leading to lower sales prices. Two years later, some owners are still trying to sell their Orlando homes, still panicking, and still fearful about what the future will bring.


Stop.

Take a deep breath.

Stop worrying for a second and ask yourself… Why am I selling?

Of course, there are good reasons to sell:

• If you are able to sell your home and get a decent price, you instantly have the opportunity to be a buyer in a buyer's market....and reap the benefits which can be substantial.

• Certain zip codes (For example here in Orlando 32801 and 32806 as well as others) are "hot" right now and you might be able to do very well by selling.

• A house has become hard to afford.

• Some are getting older and have to move someplace that doesn't take as much maintenance.

• You have to relocate for a job.

However there are a lot of not-so-good reasons to sell:

• You've read a lot about people who have been unable to sell their homes that you turned alarmed and put yours available on the market "just in case" you wish to sell it later.

• You're simply uninterested in your home. If that's the case, maybe all you actually need to do is replace or redecorate your home to make it sparkle again.

• You want to throw your house on the market just to see what you can get for it (as unrealistic as it might be).

It may appear strange for a real estate agent to appear to be speaking in opposition to selling Orlando homes.... I really am not.  There is a right time to list a home- and it may be the right time for you now. Many of my collegues are inundated with listings they cannot sell and I am not at this point- simply because my first motivation is always doing what's best for my clients, together with giving them the best advice I can.
So, I ask you to think about both the pros and cons of selling right now.

I will remind  you that even if your home has lost some value, there are many ways that your home continues to be very "valuable":

• Building credit - Home ownership is still a good way to construct credit. With good credit you can borrow for different major bills, such as a new car.

• Building equity - The typical home equity for the U.S. is approximately $38,000. When you contemplate how a lot your home costs, that won't appear to be much. Nevertheless, when you are ready to sell, that equity will be there to put toward your next home purchase or your retirement savings.

• Saving cash on taxes - Owning a home offers a number of tax benefits. For most Americans, the biggest benefit is deducting the annual interest paid on a mortgage- and here in Florida we have our homestead exemption of course.

• Living well - There's a reason why home ownership is still referred to as the American Dream. It simply feels good to reside in a home you love.  You have the control andcan decorate any way you want. It is a home that is your very own.

I hope this article helps you in some way, and maybe gets you thinking or brings you peace of mind.   If you have any questions or would like to discuss the possibilities of selling your home, or just want to know what the value is and what I think I could sell it for, please get in touch.  As always, I am there for you!

If you look at the right sidebar of this blog ORLANDO REAL ESTATE MATTERS you will see boxes that display listing inventory and pricing trends for most of the neighborhoods in Downtown Orlando as well as Winter Park.   If you have questions on how to interpret this information, or if there is a specific neighborhood that you would like information for that is not listed....just let me know and you shall have it   :)

I figure the day after my 50th birthday would be the appropriate time to recognize that our very own Thornton Park has been  named one of the magazine's best "Old House" neighborhoods of 2010.
Old is in!
Full article from "This Old House" magazine below.


Thornton Park, Orlando, Florida | Best Old House Neighborhoods 2010: the South | Photos | Home & Real Estate | This Old House