Columbia SC Real Estate Blog

In this day of decreasing prices and fewer buyers in the Columbia SC Real Estate Market many people are looking to save money anyway they can. Unfortunately, millions of people trying to sell cannot afford to pay the traditional 6% commission. Doing so would result in their coming out of pocket with money they don’t have. What are their alternatives? One is going it on his or her own without an agent. The options to market are limited by doing so. A sign in the yard statistically sells more homes that either newspapers or For Sale By owner Internet sites if the location is one that attracts drive by traffic.  As we all know, the days of thriving newspapers and large Real Estate sections are history. I can remember on a Sunday seeing multiple photos of color pictures of homes and numerous classified ads marketing homes by both agents and homeowners. These have dwindled.  Newspapers are now driving traffic to a website and selling space on the site. Specialized newspapers advertising these homes By Owner are also on the decline. Unfortunately, people still pay rather large sums in bigger markets to advertise Columbia Homes For Sale By Owner with little success. Some of these periodicals are affiliated with discount Real Estate agents and can save the consumer money vs. the traditional approach.

A further word about For Sale By Owner sites. They can brag about much traffic that when further analyzed is not so much compared to other websites affiliated with Realtors. Some of the biggest sites in Real Estate like Realtor.com, Real Estate.com, Zillow, Trulia, Move .com, HomeGain, and others attract millions of potential buyers because of the size of homes offered. In my city there are over 5000 homes on the local MLS compared to several hundred on the top By Owner sites. Many of the homes on these sites are already sold, rented, or listed with a Realtor.  No local MLS Board or Real Estate Commission is policing these sites to stay current. The sites promise a lot and don’t deliver in most cases. They charge too much for what they do in my opinion. They admit defeat and state, oh by the way; the best way to sell your home is to go into the local MLS. That is a truthful statement. They will refer you to a local flat fee Broker and take the lion’s share of the commission. They can sell you products that you can’t use if you list. It is more prudent to list directly with a Flat Fee company to avoid delays and unnecessary expense.

Broker Bob Mandel, Real Estate Advocates Network

Our Principles Come Before Our Profits

It is a challenge in most areas of the country to sell a home. On the lower end the stimulus tax bill did result in many more sales. Who wouldn’t want $8000 to buy a home? Now we are back to the flat real(estate)world. Many Columbia Real Estate sellers have little equity in their homes. Paying 6% or 7% commissions would result in a negative dollar closing for the seller. Some sellers do not have the money to pay the difference and be able to move. The alternatives are few. The seller can try to go it alone, which may take longer to sell and result in seller mistakes, or go with a flat fee company. If the seller is not in a rush, I suggest going with a flat fee company. Why you say to go in this direction? Let’s do a top ten list using an example of a $150,000 home.

1. If the seller is fortunate enough to get a buyer they will save over $8000 in commissions.
2. Minimally they will save over $4000 by listing with a flat fee company.
3. They will be able to go into the same MLS’s as a full service company, the same local Real Estate Companies sites, and all the National sites affiliated with the local MLS. This results in 75% of today’s sales.
4. The seller can advertise on By Owner websites for free or a minimal cost.
5. The seller can advertise in the newspaper or do open houses and if they secure a buyer will owe no agent commission.
6. The seller in some markets can have a By Owner sign on the property or an agent 800# info-line with their number giving another chance to save on commissions.
7. With the savings they can accurately price the home using an appraiser who won’t inflate prices to get a listing.
8. With the savings they can get an inspection of their home to correct any cosmetic or other problems noted.
9. They can offer closing costs to make a deal and have more room to negotiate price.

10.   To get traffic they can offer agent bonuses for a closing attracting more showings.

Broker Bob Mandel, Real Estate Advocates Network

Our Principles Come Before Our Profits

WHAT IS YOUR MORTGAGE IQ ?

If you are like most people you probably were semi-comatose at your closing on your home. You were told a lot of things which you probably don’t remember. If you are typical of most buyers you probably never read every clause of your mortgage. If you did, you probably forgot what you read. The closing attorney is anxious to get the closing over with as quickly as possible and never goes over every clause. So, did you miss anything important? Well, yeah. I went over my mortgage and found out the following.

1. I could have killed the deal within 3 days after signing
2. I had to have insurance approval by my lender, or they could have required other coverage.
3. If I gave a bad check to the lender they could require future payment in cash, money order, or certified funds. (I pay direct deposit) to avoid this and to pay on time.
4. The buyer has 60 days to move in or they are in default and the loan could be called in.
5. The buyer has to live in the house for 1 year before they can rent their house out.
6. Forget about storing hazardous materials or Mr. Banker will make you pay________up.
7. I can pay off the loan with no prepayment penalty.
8. I can pay more on principal when I want to.
9. I must keep insurance on the property to protect the lenders interest in the property.

10.  If I am late on a payment I pay a 5% penalty. Whoa, that is heavy. What about usury?

11.  Any one on the deed is responsible for the whole note. Be careful co-signing . It can cost you.

12.  Escrows can include insurance, taxes, and home owner fees

Broker Bob Mandel, CEO Real estate Advocates Network, Columbia SC Real Estate

Our Principles Come Before Our Profits