Tag Archives: For Sale By Owner

Face it! We are up to our eyeballs in the digital age.

Face it! We are up to our eyeballs in the digital age, and your house needs to be become part of the adventure. Everyone is looking for “Hey Google” this, “Alexa” that “Cortana” help, or “Siri” that. This trend is one that will not go away. It is here to stay.

google nest mini 2
google nest mini 2

Many older homes are not fully wired for internet or any other digital gadget that the world of communication is throwing our way. Sure, some of them come with the alarm system, wired smoke alarm, or internet accessibility in every room, but for today’s buyer that may no longer be enough.

 

Rewiring the home properly for internet could be an expensive and time-consuming undertaking and the price will vary depending on how large your home is, such as a two story and the type of foundation. That is why many of the internet providers just string your internet/TV service wire on the outside of the house and not through the walls, ceiling, or crawlspace/basement. It would be better to have someone do it properly for you prior to scheduling your cable and/or internet service.

We chose to have our house rewired properly. If the cable provider wants to make any cable upgrades, they must come down the wall like all the others. We only have one main entry point from the outside of the house and on the inside the wiring will remain the same. That means if the interior wiring also needs upgraded, the installers will have to make a trip into the attic.

Smart OutletAlso, changing out some of your electrical outlets for outlets with USB charging connectors is a low-cost way to add to your device charging stations.

 

Another reasonably priced gadget to install is the keyless entry door locks. These upgrades are convenient and will also prevent you from being locked out of you home. The lower priced units do not have wify access, but the more expensive one do. When you would like to open your house remotely you would have to get the internet enabled keyless entry units and the price will vary depending on the brand and features you are looking for.

keyless entry lock
keyless entry lock

In this day and age you have all kinds of toys you can add to your home that are Wi-Fi enabled and fun to play with. Lights, heating/cooling, ceiling fans, vacuum cleaners, appliances, faucets. They sky is the limit.

 

The bottom line is you might have to be prepared that today’s buyer is at least looking for some smart-home tech that is included in the deal: smart thermostats, smart smoke/carbon monoxide detectors, smart home security cameras, and smart locks.

Buying homes through a tax sale

There are many different ways to invest in real estate. The more common known due to some of the DYI shows on TV are the rehabbers/flippers and the income/rental properties.

Another way to invest in real estate is tax sales. Continue reading Buying homes through a tax sale

Things to consider when you and your REALTOR holds an open house

openThe house is listed. It is online with the MLS and various other websites. The sign and informational box is in the yard. You are planning for your open house. Continue reading Things to consider when you and your REALTOR holds an open house

Student loans are affecting home buyers

budgetEver since the mortgage rule changes that went into effect in 2009, a small but ever growing title wave has been building. Individuals who lost their jobs during the downtrend of the market and decided to go back to school to earn a different degree, or updating their personal education, to put them into a better position for a better paying job. They are not only facing an ever tighter job market but also have put themselves financially behind the 8 ball when it comes to being able to qualify for a mortgage.

Continue reading Student loans are affecting home buyers

New rules that go into effect January 21st 2015 that will affect FHA loans

lawSince the housing crash we have witnessed more and more rule and regulation changes that affect the way loans are written. Making changes and adjustments to current rules, and writing new rules, has not slowed and I don’t see them slowing down anytime soon. The new changes that will go into effect in 2015 will not affect your current FHA loan unless you refinance. Continue reading New rules that go into effect January 21st 2015 that will affect FHA loans

The Settles Report

reportEvery week we pull information for the Central Indiana real estate market and look at the last week’s market condition for central Indiana. To simplify the process we are pulling the information for three counties that are part of the Central Indiana real estate market.

We used Marion, Hamilton and Johnson County for our report that is for 07/14 – 07/21/2014.

That week Marion County had 361 new listings with an average list price of $132,731. Hamilton County had 349 new listings with an average list price of $237,182 and Johnson County had 85 new listings that were made available with an average list price of $184,623.

Clay Township, within Hamilton County, had the most listings that were made available with 54. Taylor Township was not far behind with 35 new listings. In Johnson County Pleasant Township had the most new listings with 34. Right behind is White River township area with 31. Marion County had the most new listings in the Washington Township area with 61 and right behind it was Warren Township with 54.

During that same week Hamilton County had 125 properties where the sale is now pending (in escrow). Johnson County had 42 properties that the sale is now pending (in escrow) and Marion County had during the same week 229 properties that have a pending sale offer (in escrow).

Marion County during that same week had the most closings with 281. The average sold price for Marion County was $113, 645 for that week and the average marketing time was 85 days. Johnson County had 63 properties that closed during that week and the average sold price at that time was $191,972 with an average of 81 days of marketing time. Hamilton County had the fasted marketing time of 45 days with an average sold price of $236,427 during that week.

When you are looking for a real estate firm who understands their clients and the market, contact the Settles Team. We are here to assist our clients in fulfilling their real estate dream.

Demystifying what a Real Estate Agent does in a real estate transaction

direction
“What does a real estate agent do” is a frequent question that is being asked. Let me see if I can demystify what a Real Estate Agent does during a transaction.

Many of the things a Real Estate Agent does are many times done outside of the public eye. What the public sees mostly is the interacting directly with our buyer or seller clients.

Depending on in what state you are buying or selling your real estate, you may have different types of real estate agents involved in the transaction. Each one of them may have different obligations they need to fulfill during a transaction that is either governed by local, State, or Federal laws/rules.

None of them are allowed to disclose the following information to either party, whether it is to a buyer or seller, unless agreed to in writing by both parties.

a)      Any material or confidential information (except adverse material facts or risks actually known by Licensee concerning the physical condition of the Property, and facts required by statue, rule, or other requiring entity).
b)      That a Buyer will pay more than the offered purchase price for the Property.
c)      That a Seller will accept less than the listed price for the Property.
d)      Other terms that would create a contractual advantage for one party over another party.
e)      What motivates a party to buy or sell the Property?

Most commonly, everybody knows the Buyer or Sellers Agent. That could be either a Broker or a Salesperson (some states). More and more, there are now also Transactional Agents that formerly where dual or limited agents. A Transactional agent does not represent a buyer or a seller. They are a neutral go between for both parties to help them complete a transaction.

A buyer’s agent is ONLY representing a buyer and not a seller at the same time! A buyer and seller are represented by the same Agent during the same transaction is commonly called a dual/limited agency and it is not legal in all states. In many cases the dual/limited agent has been replaced with a transactional agent and it has to be understood and agreed to in writing by all parties.

Feel free to contact us and ask for the Agency relationship brochure that explains the difference between a Buyers, Sellers and Dual/Limited Agents.

Due to the different in the governing bodies that govern what a Real Estate Broker/Agent is allowed to do, you need to check with your State directly. There are basic functions a broker does that is pretty much within reason the same in every state.

  • Comparative Market Analysis (CMA) — an estimate of the home’s value compared with other properties located within the same neighborhood or within a certain distance of the subject property. (competition for the subject property)
  • Total Market Overview — an objective method for determining a home’s value, where a CMA is subjective.
  • MARKETING — Marketing the real property to prospective buyers.
  • Facilitating a Purchase — guiding a buyer through the process.
  • Facilitating a Sale — guiding a seller through selling process.
  • FSBO document preparation — preparing necessary paperwork for “For Sale By Owner” sellers.
  • Real estate appraisal — in most states. Other states a broker has to be licensed as an appraiser.
  • Home Selling Kits — guides to how to market and sell a property.
  • Real Estate consulting – based on the client’s needs.
  • Leasing for a fee or percentage of the gross lease value.
  • Property Management – In some states the broker has to hold a Property Management certification.
  • Exchanging property.
  • Auctioning property – unless the state requires an auctioneer license.
  • Preparing contracts and leases. (not in all states)

When you have any questions about this or any other Real estate related topics, feel free to contact the Settles Team. We are never too busy to help you with any of your real estate related needs.

Easy “no cost” seller ideas to use to sell your home when you are in trouble.


When you are faced with being forced to sell your home and you do not have the money to invest in repairing it, you may then have to sell it “AS-IS”.

Here are several things you can do to give your home the best chance to sell quickly even if it needs repairs.

Think of what you can do and not what you can’t do……

None of these ideas cost you money and it is possible they may make you some money! (OK one maybe will but only if you have no other option)

In the sellers disclosure identify what needs to be repaired. Better to disclose than to hope the buyer will not see the areas that need attention.

  1. Start clearing out and start selling items you do not need. Look in every nook and cranny.
  2. Remove all your personal pictures and notes from the walls, desks, tables and refrigerators. Buyers are not interested who is in the house they want to know about the house.
  3. Vacuum the carpets all over the house, under the bed, under the couch, and the chairs.
  4. Deep clean all of the bathrooms, and the Kitchen. Do not forget behind the stove and under the refrigerator. People will pull the shower curtain to see how clean the shower is.
  5. Take a damp sponge and clean off all the finger smudges of the walls by the light switches and other places you can find. Don’t scrub hard be very gentle.
  6. Clean out overstuffed closets. Put the excess in to storage or sell it.
  7. Organize your kitchen. Get rid of the junk drawer (we all have one).
  8. Clean off the kitchen counter top. If you keep it cluttered, you are telling the buyer that you do not have enough storage room for your items.
  9. Clean out the garage. If you have to sell some of the stuff you have then do so!! Otherwise put it into storage. Do not use the garage as storage unless you are planning on telling the buyers that the house is too small and does not have enough storage.
  10. Clean up the yard!!!
  11. Mow the yard and keep it trimmed!!!
  12. Ask friends or family members if they have some plants you could plant in your yard when you have none.
  13. Clean your windows and open the curtains to let light in!!!

All these ideas, except for putting some of your items into storage, will cost you no extra money you would not be spending anyway. What you will be spending mostly is your effort to get it done.

The faster you can sell your home, the faster you can get back on track, and the faster you might be able to get in to a new home. The longer it takes, the larger the shortfall will be. In this case time is money!!!!

DIFFERENT TYPES OF LISTING CONTRACTS THAT ARE AVAILABLE TO SELLERS


Every seller has the right to sell their home without the help of a brokerage firm and that is called a For Sale By Owner (FSBO) listing. You as an owner make the decision of accepting or rejecting an offer from a buyer represented by a real estate professional. Many times, before the buyers real estate representative will present an offer to the FSBO owner, they ask the FSBO owner to sign a commission payment agreement that guarantees the broker a commission at the time of closing. This in many states is also called an OPEN LISTING.

Man's Hands Signing DocumentThere are many types of listing agreements that can be used in the sale of residential real estate.

Another form of contract is the EXCLUSIVE AGENCY LISTING. The huge difference between this and the EXCLUSIVE RIGHT TO SELL is that when the agent or cooperating agents brings a buyer to the transaction the seller would have to pay for the commission. When the seller brings the buyer to the transaction the seller does not owe the agents a commission at time of closing. Many real estate professionals are reluctant to work on EXCLUSIVE AGENCY LISTINGS due to the lack of control.

An EXCLUSIVE RIGHT TO SELL listing is used close 95% of the time when it comes to listing residential real estate for sale. With this type of listing contract, no matter who brings a willing and able buyer to the transaction, the agent will earn a commission. In most markets when the buyer is brought by a cooperating agent the commission is split equally between the cooperating brokers. The length of time a listing contract runs is negotiable. It can be as short as 30 days and as long as 6 months. It just depends on your local market.

Another form of listing is the NET LISINTG. In many states the net listing might not be legal. Many times with the NET LISTING, the seller tells the real estate professional what their net price is for the home and the agent adds their commission to the net price later when they have a buyer. There might be a conflict when this situation when the agent has an offer that is much higher net than what the seller requested. In this case the seller might feel cheated. On the other hand, when the net is much lower than the seller anticipated the agent might not earn a commission and is reluctant to present the offer. In my state, Indiana, in order for a NET LISTING to be legal, the maximum amount of commission must be stated in the listing contract and has to be disclosed up front and agreed to by the seller.

When you have any questions feel free to contact the Settles Team.