For Sale By Owners Losing Money

For sale by owners, did you know you are losing out on more money in your pocket by going it alone. While you might be saving the real estate commission, you are not netting what you could if you used a real estate agent. And at the end of the day, the net is what counts. The following article explains in more detail.

For-sale-by-owners tend to sell their homes for lower prices than homes sold through traditional agents via the MLS, and in many cases below the average differential represented by the prevailing commission rate, according to a new study by Collateral Analytics

The study examined the price differences between homes sold through traditional agents versus those sold by FSBOs from 2016 to the first half of 2017.

Some homeowners may be tempted to try to avoid commission costs to a broker and try to sell the home on their own. But that can backfire and turn into a much lower sales price, the study found.

Even successful FSBO sellers achieve prices “significantly below” those from similar properties sold more traditionally via REALTORS®, the study found.

The authors found that the differential in selling prices for FSBOs when compared to MLS sales is “remarkably close to average commission rates.” A FSBO sale, on average, nets nearly a 6 percent lower price than an MLS sale for a similar property. 

Assuming that both buyers and sellers pay the commission, one might have expected something less than this average, the researchers note. It appears that many sellers are avoiding commissions while netting home prices less than they would with an agent-represented MLS sale. They are avoiding commissions at any price, even one that exceeds a commission rate.”

If more money in your pocket is what you are looking for, then you might consider hiring a professional.

Source: “Saving Real Estate Commissions at Any Price,” Collateral Analytics Research (Aug. 16, 2017)

What Can I Do To Increase My Home’s Value

Some the features that increase property values are obvious-like a remodeled bathroom, a modern kitchen, or a sought-after neighborhood. But here are a few features and circumstances you have not have realized can affect property values.

  1. The neighbors: Not every neighborhood or community has an HOA that can keep the neighbors from going overboard with decorations or neglecting to care for their home. Homes adjacent to crazy neighbors can potentially be undervalued.
  2. Trendy groceries and coffee: Recent statistics suggest that if your home is a short walk from popular grocery stores like Whole Foods or coffee chains like Starbucks, it can actually appreciate faster than the national average.
  3. Mature trees: A big beautiful tree in the front yard is enviable, and it’s not something that can be easily added to any home. Homes with mature trees tend to get a little boost in value.
  4. Parking: This isn’t too much of an issue if you live in the suburbs or in a rural area, but residents in dense cities can have real problems with parking, and homeowners might need to rent a spot just to guarantee a place to park each night. That’s why having guaranteed parking in urban areas will raise property values.
  5. The front entrance: First impressions matter to buyers-many will cross a home off their list within 10 seconds of stepping through the front door. An appealing front door, a friendly entryway, and a functioning doorbell are all necessities for getting top dollar.

San Ramon Home Sales 2nd Qtr 2017

San Ramon home sales for the second quarter of 2017. These numbers are for single family detached homes:

  • 261 Units Sold
  • Average Sales Price $1,169,633
  • Median Sales Price $1,120,000
  • Highest Price $2,375,000
  • Lowest Price $619,000
  • Average Days on Market 18

Average sales price is down 1% over first quarter of 2017, yet more than double the units, 261 vs 121

Loving Home Ownership

Innovative Idea for a Swimming Pool

Want a pool yet either don’t have the money or your yard is too small. What about a using a shipping container to create your backyard fun. Sound silly, a couple came up with the idea called Modpools. Oh and if you move you can take the pool with you. Here is an excerpt from an article in RSI Media Housecalls.

“Paul and Denise Rathnam launched Modpools earlier this year and the idea has taken off, with orders mostly coming from the hottest locales in North America, particularly California, Nevada, Texas and Florida. It’s an interesting concept, for sure, and the design, once installed, looks pretty slick. It’s as if your backyard was always destined to house a shipping container.”

The standard size Modpool is eight feet wide by 20 feet long, and just over five feet deep. It also comes with a clear, acrylic window on one side, which is actually a pretty spiffy design element. Customers can opt to add another acrylic window on the other side for a see-through look if they want one.

Source:RSI Medias Housecalls; rsimedia.com

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