My House Is Under Contract and Officially “In Escrow”
Posted by Deane in Sale Of Author's House on May 13, 2010
Whoops! I see I haven’t posted in two weeks. I didn’t mean to let it be that long, but I’ve been busy. I’m sure you understand.
Just before we met with the Anderson’s agent who was presenting our second offer, the Johnson’s agent called to announce they were removing the contingency. Oh happy day! So now we had a full price offer, no contingencies. The Anderson’s offer wasn’t as strong as the Johnson’s, but I didn’t care – it encouraged the Johnson’s to remove the contingency. (As it turns out that wouldn’t have mattered anyway, I’ll explain below.)
The original offer(minus the contingency) was accepted, we signed the contract, and are officially in escrow. Here is what has so far happened during the escrow process:
- We have had our home inspection. The inspector found a handful of small items, but the buyers didn’t ask for any
repairs. Whew-hoo! That is unusual but more likely when your house is an excellent shape. 
- The Johnsons got a full price offer on their house, with no contingencies. Their house was on the market only 7 days! Their buyer wants to move in fast, so our closing date has already been set for 6/9. This is great news as it keeps them on track and motivated to close on time. Ironically, if we hadn’t held out for the contingency our closing date would have been the same. But you never know!
- Today the appraiser was by – we should have the results of that in a few days.
The only small glitch was I had to remind John to arrange the home inspection. According to our contract, the inspection should be done and been presented with the repairs requested 10 days after contract ratification (signing). The inspection wasn’t done til day 13. Uh-oh. So we requested an addendum. John seemed a little miffed that I asked 
for one, but you can never be too careful. In a perfect world we could do all transactions on a handshake, but in the real world we have contracts to help make sure everyone does the right thing instead.
Now we have to wait for the results of the appraisal and for the Johnson’s loan approval. Their financials were very strong, so I’m not concerned about that at all. Since there was no contingency about the appraised value of the house, that shouldn’t be an issue either. If someone is getting the maximum loan amount, not appraising high enough can kill a deal, but that really can’t happen here. The Johnsons are putting more than 1/3 down so there really is no chance their loan won’t cover their responsibility.
How To Handle TWO Offers On A FSBO House
Posted by Deane in Administration, Sale Of Author's House on April 26, 2010
Yesterday we had our open house as planned, but I had a few brain cells anxiously awaiting to receive the offer we had been promised. It was a really awful day, cold, raining, but we still had a decent turn out – 11 parties. One family attended with their agent, let’s call them the Anderson’s and their agent Anne.
After the open house, I checked my email, and there was the offer from the Johnson’s who saw the house on Friday. Their real estate agent, let’s call him John, kindly summarized the terms for me on his cover page. The fantastic news is that it is a full price offer. The bad news is the contingency. They want to sell their house first. Ugh. 
Last evening, I got a call from Anne. Her clients, the Anderson’s, want to see the house one more time then make an offer. She says they have been looking at houses for two years (!) and that finally found “the one”. My house.
So you may be wondering how to handle this? I, of course, leveled with Anne, because I like to be as honest as possible in all my dealings and it is in my best interest to do so. I told her we already had a full price offer with a contingency. I could have hidden this but didn’t for several reasons. Now the Anderson’s know they have competition and they will have to do better than full price with contingency. I was interested if they would still want to proceed knowing this, and they do. Good sign. They will be here tomorrow (Tuesday) morning. Meanwhile, their in-laws stopped by today to give their approval. (They LOVED it.) I’ve told Anne I need the offer in by Tuesday evening so I could respond in a timely manner to John and the Johnson’s.
Then I sent John the following email:
“Hi John, My husband and I have reviewed the offer from the Johnson’s. Of course, full price is wonderful – it doesn’t get any better than that! It looks from their financials and job stability that they should not have any trouble obtaining financing, a huge plus. However, we have great concerns about the contingency of the sale of their house. Obviously, this takes us off the market for the next six weeks, six prime weeks in the height of the best selling season, with no guarantee of a sale. We will need to think long and hard about this and would like until Wednesday to respond further. We are expecting another offer tomorrow which we want to review before making our next move, too. Thank you for your consideration, and I’ll be in touch sometime on Wednesday.”
This morning I looked up the Johnson’s current house (the one they need to sell before they can buy ours) on Realtor.com and couldn’t find it. Uh-oh. It turns out they haven’t even got their house on the market yet. This further weakens their case. If they were under contract or had a lot of interest on their house, their offer would have sounded a lot better. But it could take a L-O-N-G time (as in Long and Foster) for them to sell their house.
So not much to do at this point until the second offer comes in. I will keep you posted!
P.S. ALL NAMES HAVE BEEN CHANGED JUST BECAUSE.
Interesting Second Week of Selling My Own House FSBO
Posted by Deane in Sale Of Author's House on April 24, 2010
For some reason, this Tuesday I had 8 (count ‘em), EIGHT calls from real estate agents wanting to either see or show my house within twenty minutes. Literally. My listing must have been circulated in some FSBO list that realtors purchase. I spoke with a few and politely told them they were welcome to preview the house for buyer they were working with but I was not interested in this time at listing my house with them. 3 of them set appointments to visit my house and all three cancelled at the last minute, which makes me feel pretty certain they really were only interested in trying to get a listing, but made an appointment to “save face” at the time.
One agent who did not call in this rush showed the house Friday afternoon. I warned him I’d be cooking dinner as we were having company that evening. The couple spent about 20 minutes here but were VERY quiet and gave me no indication they were actually interested. They mainly seemed concerned that I have electric cooking and the wife really wanted gas. I told them that would not be a big concern as I removed a gas stove when I moved in so the gas line was already there. All true, of course.
When they left, I expressed to my husband that they didn’t seem very interested and wrote them off in my mind. This afternoon their agent called wanting my fax or email so he could send me an offer. I was stunned. Learning of a pending offer is always a good sign, but I’ve learned enough not to get too excited yet. It could be for a low ball number or have terms I can’t live with. So, I’ll keep my fingers crossed that is it a good offer. Meanwhile, I will have our open house tomorrow as planned.
My FSBO Update – Day 10
Posted by Deane in Sale Of Author's House on April 19, 2010
Last week, we had one very interested party look at our house. He had flown in from CA to look at houses here due to a job transfer. I overheard him say to the realtor that this was the only house he could really see himself living in. Yesterday his wife flew out to look at our house and some others. Their agent told me, “I wish all houses showed as good as yours – it would make my job a lot easier. You should write a book.” I couldn’t read the wife’s reaction to the house. She clearly was jet lagged, exhausted and harried. She was catching a flight back from Baltimore to California in a few hours.
The good news about this couple is they HAVE to buy a house ASAP. It is their first house so no contingencies about selling their current house. They have a mortgage broker in their immediate family so getting a loan might be less problematic if the broker really knows the ropes. Now it’s “wait and see”.
Of course, I am not depending on this, so I continued my marketing this week and had another open house.
- I did my daily walk and distributed 50 fliers each day to neighbors.
- I added notice of the open house to my MLS listing.
- I posted on Craigslist as often as allowed.
- I put up handmade bandit signs around a nearby elementary school (lots of daily traffic there). If these moms
lived in MY house, their kids could safely walk to school. What a benefit! - I posted professional “open house” signs at 4 busy intersections near my house and of course, in my front yard.
- I kept my flyer box full!
We had 23 parties attend the open house yesterday. I was very pleased with that. One man stayed an hour and really couldn’t tear himself away. He said, “I’ve been looking over and over for a flaw in this house and I’ve yet to find one.” He also comment he was going to tell a friend of his about this house because, as he said, “Even if I can’t buy this house, I want SOMEBODY I know to buy it so I can at least visit it!” However, people that LOVE your house and can or will get a loan are two different stories. You also have to be prepared for people who don’t love your house and not take it personally!
This morning I sent a thank you email to all who signed in and left me their email address and filled my flyer box.
And now it’s back to work!
Do Your Buyers Know How To Buy A FSBO Home?
Posted by Deane in Sale Of Author's House on April 14, 2010
Some potential buyers will be working with a real estate agent, but many will not be. If they are unsure how to proceed 
they will probably contact a realtor. I’d LOVE to save that 3% commission when I “found” the buyer myself, so I help the buyer understand what to do next.
Today I sent out emails to everyone who attended my open house telling them how to proceed with buying my FSBO if they are unsure. Here is the body of that email:
| You may be wondering, “Do I need a real estate agent to buy a “for sale by owner” home?”
Not only are agents unnecessary to buy a home, involving one during a FSBO transaction could actually hinder the buying process, as the agent would want the seller and/or the buyer to commit to paying an expensive commission fee even though they did not bring the buyer and seller together. I have personally purchased and sold many homes “for sale by owner” and here is the process to buy a “for sale by owner” home: Get Pre-Approved For A Loan: You will want to get pre-approved so that you are ready to make an offer on a house. Getting a pre-approval letter is a quick process that will tell sellers that you are a serious buyer who can afford their home. If you are looking for a recommendation, I have worked with a local broker, John Finnessey, for several years. He has been in the business for 20 years, really knows his stuff, has integrity and and is an all around good-guy. He will guide you through the loan application process which is the hardest part of buying a home. His phone number is (443) 889-2828.
Make An Offer: Unlike homes being sold by a real estate agent, there’s no middleman to interfere with you from getting directly in touch with the seller. Contact the seller with any questions, or for a second showing.
If you have decided that a house is the one for you, and you are preapproved for a loan, you’re ready to present the seller with an offer. Offers on homes can be made verbally (in person or on the phone) or in writing (fax or email works just fine). Tell the seller how much you want to offer for the house. The seller will either accept or reject your offer or make a counter offer. Other terms to be agreed on are amount of deposited required, amount of down payment, closing costs, contingencies, date of possession, and other property to be included (such as appliances). Negotiations are common, even expected. If you are dealing with an experienced FSBO seller, they should have a standard sales contract, and required disclaimers and disclosures. Some buyers purchase their own contract or get one from a real estate attorney. You are always free to have an attorney look over any contract before you sign it. The Escrow Process: The lender will require you provide financial information and will usually will require a home inspection, termite inspection, and appraisal. The mortgage broker can help arrange this at the proper time during the loan approval process. The lender often will recommend a title company that you can use for closing but the buyer is legally entitled to choose whatever title company they want. Close the Deal: When the loan has been finalized, you and the sellers will meet at the office of the title company. Documents will be signed and payment is made to the seller. The seller will sign over the deed of the home and give you the keys. You’re now the new homeowner! |
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We Got It Together And Had Our First Open House Today
Posted by Deane in Sale Of Author's House on April 11, 2010
Even though I paid for my flat fee MLS listing 4 days ago, as of yesterday it still wasn’t live and I was freaking out (just a little).
When you do a flat fee MLS listing through a FSBO site such as FSBO.com, the listing still has to be put on the MLS by a real estate agent and they will farm it out to a local real estate agent that handles their flat fee listings. This will be one of the hardset things you will do to sell your house, but unfortunately, it almost is required for most houses. Here are the issues I had trying to do this simple thing.
- Initially the realtor only gave me half of the documents needed to complete the transaction. Having done this before I knew what was missing. It took me 24 hours to get two additional documents. When I got all the documentation, there were 29 pages that had to be filled out and signed. It reminded me why I don’t like working with them. Everything is a big deal.
- The contract from the agent stated I would get 1 photo (and had to pay for mo), even though FSBO.com clearly states I will get 8 photos so I had to argue for that. They ultimately put all 17 photos on for no extra cost. This is my favorite photo – looking up our front walk. It really shows off the landscaping which is one of my home’s main features.
- Then very sneakily they offer, “from time to time we may do some free advertising – would you like us to include you?”. Sounds good, right? WRONG! Check this off and you have just given them permission to market your house and now you will have to pay them commission.
- The realtor I was given to use never answered their phone. Not once. Iwas stressing because I already had an open house planned and was afraid my MLS listing wouldn’t be up in time. It went live Sat. night for my open house on Sunday. It took me three days (and some nagging) to get my listing up. Ugh.
Three days ago was the day I committed to having my house officially “for sale”. Here’s how it all came together on that day:
- My FSBO “for sale” sign was installed.
- I put flyers in my brochure box.
- The 259Cinder.com website went live. It looks great.
- My Postlets ad was syndicated.
- And I started running ads on Craigslist that had either my Postlet or my website as body of the ad
- I started distributing 150 flyers around the neighborhood, hanging them in plastic bags that fit over a doorknob.
- I put up a sign that said “Open House Sunday 1-3″ in front of my house.
- All marketing that went out this week advertised the open house that we had today.
This morning, I baked chocolate chip cookies, put up “Open House” signs at three major intersections nearby, got a bunch of helium balloons, and printed out a sign up sheet.
We had 13 families stop by which I thought was a great turnout. And interestingly, only one party found out about the house from the MLS listing! (See, I shouldn’t have stressed out about getting the listing up in time!) The others either saw the Open House signs or received a flyer on their doorknob. I’d say half were somewhat interested and 3 or 4 were keenly interested. Everyone loved the house and commented on how much better it was than other houses they had seen. (That is to be expected when you actually put some work into it!)
One neighbor said she belongs to a playgroup and there are several moms looking for houses in our neighborhood. As soon as the open house was over, I sent her an email with links to my website and my email and phone number. It pays to be proactive and make it as easy for her as possible. Of course she knows that I will give her a $500 “thank you” if anyone she recommends buys the house.
Today we also have someone coming by from a Craiglist ad to buy lawn furniture we decided to get rid of. And we have a commitment from a family member to buy one of our cars. We are only taking one car with us that we will tow and then buy another car once we get settled. Our life here is pretty rapidly being dissembled! Which is just what we want.
P.S. After you finish an open house be sure to take down the signs and balloons promptly or you will get stragglers who will demand to see the house after the set time. (Ask me how I know this!)
This Weekend is “National Open House Weekend”
For Sale Signs are popping up like tulips and National Open House Weekend is This Saturday and Sunday.
Every home seller should take advantage of the tremendous amount of buyer traffic that will be on the street this 
weekend. The Realtors Association is doing the advertising for you. Don’t pass up the opportunity to show off your home, too!!
What Time Should You Hold Your Home Open?
- Open your home to the public for 3 hours, both Saturday and Sunday. On Sunday, don’t start before 1:00.
Idea’s for Advertising and Marketing Your Open House.
- Place an ad in your Newspaper Classified real estate section. Check to see if your local paper has a special Open House section, many do. You should run your ad the morning of the Open House and if budget allows, run your ad a few days in advance of the Open House.
- Edit your InfoTube ad and include the date and time of your Open House on your free internet ad. Be sure to remove the dates from your ad, once the event has past.
- After editing your ad to include your Open House date, Print new brochures with the date and time, then refill your InfoTube. (Tip: Make sure you print plenty of brochures to hand out at your Open House.)
- Open House Directional Signs. Nothing boosts attendance as much as directional signs placed at all key intersections and the routes traveled to reach your home. You can purchase directional Arrow and Open House signs at most major home centers. Please collect all signs after your Open House to avoid possible citations. Many towns consider left over signs as “littering”, after the event has passed.
- Attract more attention. Purchase an Open House sign for a few dollars at your local hardware store. Tie brightly colored balloons to the sign the day of the event.
- Post your Open House on OpenHouse.com. Place a post on Craigslist. Send out an email. Use the internet to gain as much attention as possible.
Source – InfoTube.net
Two Of The Most Important Things To Do Right When Selling Your Own House
Posted by Deane in Sale Of Author's House on April 5, 2010
Today, my husband took photos because it was a nice bright sunny day. The outdoor photos look great – the sun sky is blue, the grass is “Ireland green”, the trees are budding out, and flowers are blooming. Here is a view of the back of my house. 
However, the indoor photos didn’t come out as good. The light streaming in the windows either caused a glare or made them too dark. My husband is working on adjusting the camera so we can get some better photos tomorrow.
Here is what I got done today:
- I decided on my asking price and what percentage I will offer to a buyer’s realtor and the realtor bonus I will offer. (I’m offering a bonus for a ratified contract by April 30th.)
- I plugged these numbers into my net worth calculator so I know what I will net under my best and worst case scenarios.
- I finished creating my Postlet.
- I’ve finished creating my flat fee MLS listing, except for adding photos.
- I ordered door hanger bags and created a flyer I’ll be taking around to all my neighbors inviting them “pick their new neighbor” and offering them a referral fee if they find a buyer.
Getting your asking price right and marketing effectively are two of the most important things you can do to sell your own house.
EBay Ad That Sold An Unusual High Ticket Item In A Day
Posted by Deane in Sale Of Author's House on April 4, 2010
Here is the ad my husband placed on eBay to sell a set of real estate investment system. I didn’t give a hope in heck that anyone would want this. Who ever heard of Lou Brown?!? But we sold it in two days for the asking price!
I want you to see what a well-thought out ad this is. Interesting, there is currently someone else selling this same item for half the price, and there’s still has not sold I guess because they just put a photo up with no description.
Another tip, we have been throwing in a “bonus” item, too. So if you are selling an exercise bike, throw in a nice water bottle, or exercise DVD you don’t use anymore.
I hope this helps to get your house decluttered so you can be well on your way to selling your own house FAST!
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Before You Sell Your Own House, Sell Your Stuff On EBay and Craigslist
Posted by Deane in Sale Of Author's House on April 4, 2010
I am a minimalist when it comes to accumulating a lot of stuff, and so is my husband. On that we agree. However, as we stared sorting through our stuff and deciding what to give away, what to sell, and what to keep, to my surprise, we disagreed on almost everything! If he wanted to keep it, I wanted to give it away. If I wanted to give it away, he wanted to sell it. Therefore sorting through our stuff took a little longer than I expected. 
I usually am of the mind of giving things away rather than selling them. After all, who would want this stuff I’m now considering “basement clutter”. WRONG. My husband is taking care of selling on eBay and Craigslist, , blow me down, most of the items he has put on eBay (if we can easily ship) or Craigslist (for bigger items), have sold in a day for what he asked! So far we sold a treadmill, an exercise bike, a set of luggage, real estate investment books and DVD’s. I’ve been stunned at how easy it was. And so far we’ve netted nearly $2000! Wow! And we still have quite a few more big items to sell. And to think I wanted to give it away.
However, don’t just slap some crappy ad on there and expect these sort of great results. In my next post, I’ll show you an ad he did for an unusual big ticket item.
So here is my home selling tip for today. When getting your house ready to sell for sale by owner, consider using eBay and Craigslist to help. You will be recycling at it’s best. And other people will PAY you to remove your unwanted stuff!
