| BUYING AND SELLING WITHOUT AN AGENT
Q. Are there advantages to selling my home without an agent?
A. Yes. If you sell your home on your own, you will not have
to pay a sales commission. While
this may seem like a large savings, you must prepare yourself to assume
all the responsibilities and costs associated with selling your home.
These include advertising your home, spending time with potential buyers,
and negotiating the sale.
Sellers familiar with local sales procedures and the real estate market
may choose to sell
their homes themselves, and there are various books that can help guide
you through the process.
Experts generally recommend that the seller hire both a lawyer and appraiser
at the beginning of
the process. An appraiser can help you establish a price for your home,
and the attorney can help you with the legal issues, legal filings, and
other necessary documentation.
Q. Are there disadvantages to selling my home myself?
A. There are three distinct disadvantages:
First, you will lack the many resources that real estate agents have to
attract buyers. For
example, your home will not be listed in your local Multiple Listing Service,
so it is unlikely that
many buyers will be shown your home.
Second, you will have to find time to show your home and talk to potential
buyers and
you will need to pay for all advertising.
Third, you will be directly involved in negotiating the sales price and
other contract
provisions.
At first glance, this last task may seem easy enough. However, many sales
fall through
without the mediating influence of a third person who has the experience
to bring the buyer and
seller together on a variety of issues. A professional real estate agent
is on the alert for "dealbreakers," the kind of petty disagreements
over small items that break up negotiations. If you've decided to sell
on your own and also don't hire an attorney to negotiate for you, remember
that settling on the terms and conditions of sale, including the price,
is a give-and-take process. The fact that you love your renovated kitchen
won't influence a potential buyer who intends to remodel anyway. If, after
some reflection, you conclude that you lack the necessary experience,
it may be wise to turn to a real estate agent or your attorney.
Q. Are there advantages to buying a home directly from the owner?
A. The major advantage of buying a For-Sale-By-Owner, or FSBO,
home should be a lower
purchase price because the seller will not be paying a commission on the
sale. The truth is,
however, that many FSBOs are priced as high as they would be if they were
listed with a real
estate firm. If you are interested in a FSBO, make sure you check the
prices of comparable homes on the market as well as recent sales in the
area.
Q. How can I buy a foreclosed property?
A. Foreclosed properties, called REOs (for Real Estate Owned
by the lender), are owned by the lending institution or government agency
that backed the mortgage. For one reason or another, the owner has failed
to make payments on the loan and the lender has "foreclosed"
on the property.
This means that the lender has taken title to the property and has become
an owner seeking to sell.
Foreclosed properties include both single-family homes and condominiums.
They are
sold individually or through auctions. Some institutions advertise their
lists of foreclosed
properties; others deal strictly through real estate agents. Local real
estate agents usually have a
current list of the foreclosed homes in their area and can provide information
on these properties.
Fannie Mae, the Federal National Mortgage Association, is a large government
holder of
mortgages. It offers a toll-free telephone number that buyers can call
to get a list of foreclosed
properties in their area. The number is (800) 553-4636; (800) 221-4636
in Maryland.
The Federal Housing Administration (FHA) usually sells its foreclosed
properties through
an auction announced in the classified sections of local newspapers. Potential
buyers submit bids on the day of the auction, accompanied by a certified
check for a percentage of the bid price. The highest bid usually gets
the home.
|
