Top 5 Reasons You Should NOT FSBO

Top 5 Reasons You Should NOT FSBO

Top 5 Reasons You Should NOT FSBO | MyKCM

Rising home prices coupled with a lack of inventory in today’s market may cause some homeowners to consider selling their home on their own (known in the industry as a For Sale By Owner). However, a FSBO might not be a good idea for the vast majority of sellers.

The top 5 reasons are listed below:

1. Online Strategy for Prospective Purchasers

Recent studies have shown that 95% of buyers search online for a home. In comparison, only 13% use print newspaper ads. Most real estate agents have an Internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

Where did buyers find the home they actually purchased?

  • 50% on the Internet
  • 7% from a yard sign
  • 28% from a Real Estate Agent
  • 1% from newspapers

The days of selling your house by putting up a sign and listing it in the paper are long gone. Having a strong Internet strategy is crucial.

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent, who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser, if there is a question of value

4. FSBOing Has Become Increasingly Difficult

The paperwork involved in the process has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 7% over the last 20+ years.

5. You Net More Money When Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, they may actually cost themselves more. One of the main reasons for the price difference at the time of sale is:

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

The more buyers that view a home, the greater the chance of a bidding war for the property. The study found the difference in price between comparable homes of size and location is currently at an average of 6%.

Listing on your own leaves you to manage the entire transaction yourself. Why do that when you can hire an agent without additional cost?

Bottom Line

Before you decide to take on the challenge of selling your house on your own, let’s get together to discuss your needs.

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Stop Wondering What Your Budget Is & Get Pre-Approved!

Stop Wondering What Your Budget Is & Get Pre-Approved!

Stop Wondering What Your Budget Is & Get Pre-Approved! | MyKCM

In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show that you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Even if you are not in an incredibly competitive market, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you through this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential homebuyers overestimate the down payment and credit scores necessary to qualify for a mortgage. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so today.

Starting the Search for Your Dream Home? Here Are 5 Tips!

Starting the Search for Your Dream Home? Here Are 5 Tips!

Starting the Search for Your Dream Home? Here Are 5 Tips! | MyKCM

In today’s real estate market, low inventory dominates the conversation in many areas of the country. It can often be frustrating to be a first-time homebuyer if you aren’t prepared.

In a realtor.com article entitled, “How to Find Your Dream Home—Without Losing Your Mind,” the author highlights some steps that first-time homebuyers can take to help carry their excitement of buying a home throughout the whole process.

1. Get Pre-Approved for a Mortgage Before You Start Your Search

One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search. Even if you are in a market that is not as competitive, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach.

This step will also help you narrow your search based on your budget and won’t leave you disappointed if the home you tour, and love, ends up being outside your budget!

2. Know the Difference Between Your ‘Must-Haves’ and ‘Would-Like-To-Haves’

Do you really need that farmhouse sink in the kitchen to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the ‘man cave’ of your dreams be a future renovation project instead of a make-or-break right now?

Before you start your search, list all the features of a home you would like and then qualify them as ‘must-haves’‘should-haves’, or ‘absolute-wish list’ items. This will help keep you focused on what’s most important.

3. Research and Choose a Neighborhood You Want to Live In

Every neighborhood has its own charm. Before you commit to a home based solely on the house itself, the article suggests test-driving the area. Make sure that the area meets your needs for “amenities, commute, school district, etc. and then spend a weekend exploring before you commit.”

4. Pick a House Style You Love and Stick to It

Evaluate your family’s needs and settle on a style of home that would best serve those needs. Just because you’ve narrowed your search to a zip code, doesn’t mean that you need to tour every listing in that zip code.

An example from the article says, “if you have several younger kids and don’t want your bedroom on a different level, steer clear of Cape Cod–style homes, which typically feature two or more bedrooms on the upper level and the master on the main.”

5. Document Your Home Visits

Once you start touring homes, the features of each individual home will start to blur together. The article suggests keeping your camera handy to document what you love and don’t love about each property you visit.

Making notes on the listing sheet as you tour the property will also help you remember what the photos mean, or what you were feeling while touring the home.

Bottom Line

In a high-paced, competitive environment, any advantage you can give yourself will help you on your path to buying your dream home.

welcome ms gulf coast

Why would anyone really want to live on the MS Gulf Coast?

 

Have you ever asked or heard someone else ask “Why would anyone really want to live on the MS Gulf Coast?” I have heard some ask this question and it got me thinking of all the reasons why; but the answer became very clear after staying home (or close to home) on the MS Gulf Coast, during my kids’ spring break! Let me tell you all the great things we did to fill our spring break, and the best part… all of them were either on the MS Gulf Coast or less than 2 hours away from it; and this is just a small portion of what the MS Gulf Coast has to offer.

 

  1. WE STAYED HOME: We started out our spring break right here at home, in GuEli at the poollfport, with lunch at Captain Al’s Steak and Shrimp. We were able to fish in the lake right in our own backyard. We had crawfish and fellowship on our neighbors back porch, overlooking the lake. We swam in the neighborhood pool, played on the playground and walked on some nature trails. My boys got a hair cut, @ Southern Gents for Easter and even got Snow Boogers (If you haven’t had Snow Boogers yet, you must put it on your to do list!) since they were set up for Southern Gents grand opening. This was all on Friday and Saturday before Easter!
  2. CHURCH AND OAK CREST MANSION : For Easter we celebrated the resuoak crest bunny (2)rrection of Christ at Campground Baptist Church, one of the many wonderful churches all along our coast. After enjoying the morning, we changed our traditional Easter family lunch gathering at home and decided to go enjoy the delicious and beautiful brunch offered by Oak Crest Mansion. It was amazing and the grounds are beautiful. This is operated as a bed and breakfast as well, and they often hosts other events such as weddings, murder mystery dinners, tea parties and more.
  3. GULF SHORES, AL: Our home is just under 2 hours to our destination in Gulf Shores, AL. (Side note: we are also only approx. an hour away from New Orleans and Hattkaleigh on beachiesburg, and about 45 minutes from Mobile and Slidell). It was a fun 3 day get away, without a long drive. We were able to hang out on the beach, and spend hours at Lulu’s on the same day that we drove back home. We enjoyed paddle boarding, fishing, splashing in the waves and great food at places like The Hangout.
  4. EXPLORE THE MS GULF COAST: We were exhausted when we got home, but we still had a couple days left of spring break! We slept late the next day and then went fishing, swimming Noah fishing (2)and playing right here in our neighborhood… again! The next day was Saturday, so one of the boys had a basketball game. They play sports in the awesome Upward Sports League. The basketball game was great, and when we left, we headed to the always fabulous Pass Christian Art Festival! We have done this for, I believe, the last 4 or 5 years now. I would go into detail, but that deserves a blog post all of its own! It’s great. The event hosts so many local artists and some that travel from other states. Saturday, you have access to Celebrate the Gulf Marine Educational Festival, that is held concurrently with the art festival. It offers so many displays, activities and demonstrations where the kids learn and explore all kinds of great things about our Gulf, rivers and more! After leaving the festival, we went to check out this cool little hiking trail. A friendly woman that was working the Department of Marine Resources booth at the Marine Educational Festival told us about it. It’s part of the Coastal Preserves program. As soon as she mentioned that we could make it to the Wolf River, so my son had to do it!                                                                                                                    And of course…. no spring break (or weekend, party) is complete without a visit from the  nostalgic Little Blue Truck and Mrs. Charlie! The Little Blue Truck does appearances for parties, click the picture for more info!

charlie and boys

It was a fun-filled and busy week and this was just a VERY small sampling of what the MS Gulf Coast has to offer if you decide to call it home! We’re proud to raise our kids here and would love to help you find a place to raise yours; or just enjoy retirement. We got to do so many things and didn’t have to be stuck in the car for a long drive. I’ve lived here 34+ years, been a Realtor here for almost 10, but still discover new things all the time. That’s what is so great about the MS Gulf Coast. There is always something to do or something to discover! You are a short drive to so many places: New Orleans, Slidell, Mobile, Gulf Shores, Pensacola and so many more. Couple that with the low prices on homes in MS, and my question is why not consider the MS Gulf Coast for your NextHome!

ryder and noah (2)If you are considering moving to the #MSGulfCoast, download our Free Home Search App and start the search for your NextHome!