South Atlanta Househounds

So you’ve decided to sell your home.  Great… now what?  Do you sell it yourself or use an agent?  I believe in full disclosure so let me get this out of the way… Yes I am biased… I’m an agent… so you know what I think.  I think you should use me.  But what are the real reasons to go FSBO (For Sale By Owner) or use an agent?

Selling yourself can be frustrating

• Owners can not register their home in the Multiple Listing Service (MLS), one of the most popular search tools for home buyers. 
• FSBO transactions (especially those done by first time home sellers) sit longer, sell for less and cause more headaches. 
• There are not as many resources for FSBO as there are for agents who have more connections and techniques.  
• With the fluctuating housing market there are less FSBO’s.  The number of owners selling without an agent has dropped by nearly 6% over the last decade.  
• You have to qualify each buyer yourself and decide who are real buyers and who are window shoppers. 
• FSBO transactions tend to fall through more often than agent represented transactions.

Can’t I save money if I sell it myself?

• How will you price your house?  Price is the most important negotiating point but if you don’t know what comparable houses are selling for, how can you know where to price yours? 
• It’s tempting to think that you can save the average 6% commission by selling your home yourself, but according to the National Association of Realtors the average FSBO sells for 16% less than a home sold by an agent.  So instead of saving 6%, many end up loosing 10%. 
• All your marketing costs are yours, upfront.  With an agent, they pay all these costs and get paid only if your house sells. 
• Among the investment community, FSBO’s are notoriously associated with great deals.  While you can’t shy away from offering incentives, many homeowners without representation get outmaneuvered and end up loosing more than they would have spent by using an agent. 

What are the benefits of selling myself?

• Owners know more about a homes strengths, weaknesses, schools, neighbors and neighborhood.  These can be great selling points when working with a potential buyer. 
• If the seller has some related experience then the transaction can be smooth and save themselves the average agent commission of 6%. 
• There are many internet sites where you can upload photo’s and allow you to market your home online.  Be aware that many internet buyers are in the early stages of buying and average 1 year online research before making an offer. 

What are the benefits of using an agent?

• Agents are immensely more experienced and knowledgeable about real estate matters.  We do this for a living and we are professionals.  We have been down this road many times and can truly help guide you through the many potential pitfalls. 
• We will help you price your property properly.  We will do a Comparable market analysis (CMA) to be sure your home is priced for the fastest sale with the largest net profit to the home seller.
• Agents will pre-qualify potential buyers and separate the window shoppers from the buyers. 
• An agent will market your property.  If I list your house, I’ll make you your own website and market your house online in addition to print and networking.  You can see some of my listings on the right side of this site.  A good agent will have an extensive list of ways they will market your property. 
• Your agent will handle all the negotiations.  Your agent has a fiduciary responsibility to get you the most money for your home.

So What’s The Bottom Line?

The numbers from the National Association of Realtors proves that homes sold by agents sell faster and for more money.  Add to that the lack of hassle and having a pro to guide your way and it’s a no brainer. 

In one way or another credit is in the news a lot lately.  From mortgages to credit cards and car payments, your credit affects your life in so many ways.  As you can see from the graph to the right, your credit score can cost or save you a ton of money.  Here are some tips to keep you in the green. 

1)  Pay Your Bills… ON TIME

While this seems rather simple it is actually crucial.  Your payment history accounts for 35% of your total FICO score so this simple act has the greatest single control over your credit.  An occasional missed payment here or there isn’t huge but being consistently late will affect your score in a big way.  For many folks it’s not that the money isn’t in the bank… it’s that they just hate to sit down and  pay bills.  Make it part of your monthly routine to get all your bills paid on or before the due date. 

2)  Reduce Your Credit Card Balances

Having credit cards that are near their limit crushes your credit score.  A big factor in the FICO score is the credit card balance versus the credit limit of the credit card.  A good rule of thumb is to keep credit card balances below 25% of the credit card limit of the card.   

3)  Correct Credit Report Mistakes

Your credit is only as good as what shows on your credit report.  Review your credit report from the Big 3 (Equifax, Experian and TransUnion) once a year and a couple months before you shop for a loan.  If you find a mistake contact the creditor first and if it is still not corrected, then contact the appropriate agency.  Unfortunately it can sometimes take months to correct a mistake. 

4)  Pay Off The Debt, Don’t Move It Around

The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.  Beware of adding new credit cards also.  For one their “special introductory rate” often ends in a few months and then the real rates kick in.  Additionally, you should only open new accounts when you really need them because too many new accounts will lower your average account age, which could actually lower your score by 10 points.

5)  Don’t Close All Your Unused Credit Cards

To begin with, closing an account doesn’t make it go away.  By closing all your unused credit cards you risk raising your loan to balance ratio.  I’m not saying you have to keep them but don’t close the accounts until after you get the loan or the financing you need.  You can cut them up or stick them in a safety deposit box if you’re worried you’ll start using them again.  Close the accounts when your credit balance to credit limit will not take you above 25%.

To Order A Credit Report Or Correct A Mistake

Experian  (888-397-3742)
NCAC
PO Box 9556
Allen TX 75013
888-397-3742

Equifax Information Services  (800-685-1111)
P O BOX 740256
Atlanta, GA 30374
800-997-2493

TransUnion  (800-916-8800)
Customer Disclosure Center
Trans Union Consumer Relations
PO Box 2000
Chester, PA 19022-2000
800-888-4213