Is FSBO the Way to Go When Selling Your Southern New Hampshire Real Estate?

Considering selling a home 'by owner' has been a fairly consistent desire in the Southern New Hampshire real estate market over the past few decades. Everyone wants to save a buck and some think they can save a lot of money by selling their homes by themselves.  But would you really save money by doing it yourself?

To start off with it should be said that there are indeed people who can sell their homes for sale by owner (FSBO) (FSBOs accounted for 9% of home sales in 2010), and some may even save a few dollars doing it. These are people who have five important skills:

   1. They have the detailed knowledge of their local real estate market to be able to appropriately price their home to get the best possible price while still attracting enough interest to get it sold.
   2. They know how to market and advertise their Southern New Hampshire real estate both online and offline without spending a fortune.
   2. They know how to pre-qualify buyers to be sure they’re actually able to afford the home.
   3. They are excellent sales people and are great at negotiating without getting emotionally involved.
   4. They know how to execute real estate contracts and all the other associated legal work necessary to sell a home.

Additionally, they need to have plenty of time to:

    * Market and advertise their home.  A lot of time can be spent writing ads, creating flyers, taking photos, and loading everything to a wide variety of real estate websites.
    * Show their home to potential buyers at times that are best for the buyer.
    * Negotiate with buyers.
    * Execute the real estate contract.
    * Follow up on any contingencies the buyer may have requested.

If you do not have those five skills or the extra time needed to perform all the necessary tasks, selling your Southern New Hampshire real estate by owner probably isn’t a good idea for you.

Instead, you can hire a real estate agent to do it all for you.  A professional real estate agent is more than just someone who puts their name on a sign on your front lawn.

    * They have significant training and experience in determining the appropriate list price for a home.
    * They are the person who is your first line of defense when it comes to dealing with buyers. They know how to be sure the person coming to look at your house really has the qualifications to actually make a purchase, not just some Sunday shopper.
    * They also have the marketing know-how and the advertising power of a real estate company behind them.
    * They have vast connections and relationships with professionals such as home inspectors, title offices and mortgage companies.  They work with these people many times a month year in and year out.
    * They’re skilled negotiators.
    * They understand what legal work has to be done and how to keep it on track. 

Obviously, a professional real estate agent saves you time, but they also save you money.  Statistics show that homes sell for more money when sold by an agent, especially in today’s real estate market.  In fact, in 2010, the typical FSBO home sold for $140,000 compared to $199,300 for agent-assisted home sales.  That's quite a bit more of a difference than just a 5 or 6% commission! 

How can that be?  People who buy a FSBO know you’re saving money on commission and expect you to pass those savings on to them, and since most FSBO sellers aren't able to reach a broad enough base of buyers to have the possibility of multiple offers, they often get stuck with bargain hunters.

If you’d like more information on how a real estate agent can help save you time and money by selling your home, give me a call today at 603-821-1134 or email me at Dave@DaveHeeter.com.

Source for 2010 FSBO stats: 2010 National Association of REALTORS® Profile of Home Buyers and Sellers

6 Snow Safety Tips for Your Southern New Hampshire Home or Vacation Property

With snow in 49 of the 50 states today, it seems appropriate to share some snow safety tips for those who need to venture out into the weather, either for work or an important errand.  Although there hasn't been much snow in Southern New Hampshire up until now this winter, we still have many more months of winter to deal with.

1.  Dress in layers.  Ideally, the layer against your skin should be made of a synthetic microfiber that wicks moisture away from your body.  Avoid cotton, which gets wet and stays wet. Top the wicking layer with something warm like fleece and finish with a jacket that’s windproof.

2.  Wear boots with good traction.  Make sure they aren't too tight, either because they're too small or because you have on bulky socks.

3.  Wear sunglasses and sunscreen.  A sunny day in winter is often brighter and more dangerous to your eyes and skin than summer sun.  That’s because of the reflection off the snow.  So before leaving your Southern New Hampshire home, slip on sunglasses and generously apply sunscreen.

4.  Shovel with care or hire it out.  If you’re not in tip-top shape to shovel the snow from your Southern New Hampshire home’s driveway, hire a neighborhood teen to do it.  You’ll give that teen some much wanted income, and save yourself from strained muscles at the least and a heart attack at the worst.  If you do not have a history of heart disease, heart attack, high blood pressure or any other ailment that could result in injury or death, you may decide to shovel the snow yourself.  Here are a few tips for safe snow shoveling:

    * Stay well hydrated.  Don’t drink caffeine or alcohol during or immediately before shoveling.
    * Take frequent breaks.  Do not remove deep snow all at once; take off an inch or two at a time.  Preferably, start when the snow is not yet heavily packed, and shovel periodically if the snow continues to fall.
    * Pick a shovel with a smaller blade.  This puts less strain on your body because you lift less snow at once.
    * Use a back-friendly shoveling technique.  Keep the shovel close to your body.  Bend from your knees, not your back.  Tighten your stomach muscles.  Do not twist. Instead, move your body so your feet face the direction in which you’re shoveling.  Do not throw the snow over your shoulder; throw it in front of you. 
    * Check your body.  Are you experiencing shortness of breath, dizziness or chest pains?  Stop immediately and seek medical help.

5.  Prepare your car for snowy conditions.  Clean all the snow off your car before leaving your Southern New Hampshire home.   Make sure your windshield wipers and headlights are cleaned off and working.  Stock your car with a shovel, extra clothes, a blanket, a flashlight, snacks, water, an ice scraper and wood ashes or sand for traction in case you get stuck in the snow.

6.  Go slowly.  Whether walking or driving, give yourself additional time to get to your destination.  The roads, driveways and sidewalks get slick, and even a generous amount of salt can leave behind spots of ice and snow.

Stay safe and warm this winter!  If you’d like to buy a safe, warm Southern New Hampshire home, I can help.  Give me a call today at 603-821-1134 or email me at Dave@DaveHeeter.com.

National and Southern New Hampshire News Roundup from December 2010

Frequently, there are news stories that impact our Southern New Hampshire real estate market.  Here are two I want to share with you this month:

Rising Interest Rates Could Get Buyers Moving

Rising interest rates may finally push Southern New Hampshire real estate buyers off the fence and into the market.  (In fact, December and the early part of January have been much busier than normal for the winter months.)

In December, after President Obama agreed to extend tax cuts for two years, the financial markets indicated this event would most likely push mortgage interest rates higher.

Analysts predict that buyers will move quickly when it looks like rates are going up and are unlikely to come down. "Once people see this might actually be the bottom, they’ll go for it," says Paul Dales, U.S. economist at Capital Economics Ltd.

For an example of interest rate increases, note what happened in December, 2010.  

    * On December 2, the 30-year fixed interest rate hovered around 4.46 percent.
    * One week later, on December 9, it was up to 4.61 percent.
    * Then by December 26, the 30-year fixed interest rate was up again to 4.875 percent.

National Foreclosure Rates Fall

Has the real estate market hit bottom?  One sign that it has is RealtyTrac’s report that foreclosures fell sharply in November.  RealtyTrac’s November, 2010, U.S. Foreclosure Market Report™ indicated a 21 percent decrease in foreclosure activity from the previous month and a 14 percent decrease from November, 2009.

According to RealtyTrac, a mortgage research firm, foreclosure activity decreased dramatically in November with fewer than 300,000 properties receiving a foreclosure notice for the first time since February, 2009.

While foreclosures typically decrease in November, and we’re sure to see a rebound in foreclosure activity, these statistics are not to be dismissed because they show the lowest level of foreclosure activity since November, 2008.  Additionally, both the 21 percent month-over-month decrease and 14 percent year-over-year decrease in foreclosure activity were the highest drops recorded since RealtyTrac began publishing the U.S. Foreclosure Report in January, 2005.

Want to know more about the Southern New Hampshire real estate market?  Give me a call at 603-821-1134 or email me at Dave@DaveHeeter.com to discuss our real estate market.  I look forward to hearing from you.

4 Types of Mortgage Lenders for Your Southern New Hampshire Home Loan

One of the least understood aspects of Southern New Hampshire home loans is the different types of lenders.  Many people assume they have to get a home loan from a traditional bank.  Not so.  There are many different types of lenders. 

Here are the main types of mortgage lenders and how they function:

   1. Mortgage Bankers: Mortgage bankers are loan originators that operate with the sole objective to sell the loan they create to another source. Even though they will sell the loan they must have the ability to finance the loan in the first place and hold it until it is sold.

   2. Mortgage Brokers: This type of lender does not originate loans for your Southern New Hampshire home, they prepare the paperwork to submit to multiple lending institutions and get offers they will present to you to choose from. Their offers may come from any of the other types of mortgage lenders.

   3. Banks and Savings & Loans: These are the most common traditional sources of mortgage loans.  They use the backing of their depositors to fund mortgages.  In turn, they use the money paid by borrowers to repay the depositors’ interest for allowing them to use the money as an investment.

   4. Credit Unions: Credit Unions operate in largely the same way a bank or savings and loan does by using money from a pool of depositors to finance investments in the form of mortgages and other types of loans. The difference is that most credit unions are operated out of a collective pool of closely associated people generally through a work place or professional organization.

If you’d like help determining the best type of mortgage lender for your Southern New Hampshire home purchase, give me a call today at 603-821-1134 or email me at Dave@DaveHeeter.com.

2011 New Year’s Resolutions for Southern New Hampshire Home Owners

Most people make New Year’s resolutions to improve themselves.  This year, consider making a few New Year’s Resolutions to improve your Southern New Hampshire home.  Here are 6 ideas to choose from:

   1. Renovate.  Choose one project you really want to do, and get it done this year.  Add on a deck, make minor kitchen renovations or install a new bathroom floor.

   2. Practice home safety.  Practice fire safety by ensuring your smoke alarms work and holding fire drills. Prevent poisoning by keeping cleaners, medications and beauty products in a place where children can’t reach them and using child safety locks.  Avoid falls by having bright lights over stairs and steps and on landings. Also, keep stairs clear of clutter.

   3. Test for radon.  Radon is a significant contaminant that affects indoor air quality worldwide. The United States Environmental Protection Agency (EPA) says that radon is the number one cause of lung cancer among non-smokers. Even if you live in an area that typically doesn’t have radon problems, the US EPA recommends testing your home for radon because testing is the only way to know your Southern New Hampshire home's radon levels.

   4. Do one thing to go green.  Change to Compact Fluorescent Lights (CFL), install a low-flow shower head, use green cleaning products or start recycling.

   5. Check water quality. Drinking water quality varies from location to location in New Hampshire, depending on the condition of the source water from which it is drawn and the treatment it receives. Every community water supplier must provide an annual report to its customers. Read your report to find out what your water contains. 

Private wells and homes drawing water from other sources such as lakes and rivers are not regulated. If your drinking water does not come from a public water system, you alone are responsible for assuring that it is safe. Routine water testing is essential.

   6. Reduce your utility bills.  Review your electric and gas expenses for the previous 12 months and make a plan to reduce them. There are many ways to save on energy bills:  increase your insulation, weather strip windows and doors, purchase energy efficient appliances, install energy efficient windows and adjust home temperatures.

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What to Avoid When Looking for a Southern New Hampshire Real Estate Agent

Picking up the phone book and letting it fall open to the real estate agency page is not the best way to find a great Southern New Hampshire real estate agent. Here are several other pitfalls to avoid when looking for a real estate agent:

• Impulse: Just because you walk into a busy, bright, and productive looking office doesn't mean all the agents who work there are also busy, bright and productive. Take the time to get to know the agents you’re considering working with. Interview them, like you would any other professional you hire, to determine their abilities and knowledge of the community in which you live.

• Easy Agreement: If you finally find an agent who instantly agrees with everything you have to say about the selling price of your home without question, beware. This is especially true if you've been to others who disagreed with your price. Consider why this one agent is so agreeable. As in any industry, there are people out there who will tell you anything you want to hear to get your business.

• Trusting Your Judgment: While you may very well be a great judge of character, make sure you get at least three references from all the Southern New Hampshire real estate agents you’re considering. Then, take the most crucial step and contact those references.

• Lowest Commission: Don't go with a real estate agent just because they have the lowest commission on the block. Remember the old adage "you get what you pay for."

These are just a few of the considerations when choosing a Southern New Hampshire real estate agent, but they will get you started on firm footing.

If you’re looking for a knowledgeable Southern New Hampshire real estate agent, I’d be honored if you’d interview me. To schedule an interview, call me today at 603-821-1134 or email me at Dave@DaveHeeter.com.

Understanding the Southern New Hampshire Real Estate Market for FSBOs

On first thought, selling your home by yourself seems to make perfect sense. It doesn't look all that hard, right? So you decide to sell your home the FSBO way (For Sale By Owner). You figure that you can put up a sign. Let people come to look at your house. Review all the offers you are sure to get and pick the best one and you're done. That's all there is to understanding the Southern New Hampshire real estate market—right?

Well, not quite. One of the most difficult things for a person trying to sell their own home to do is understand the Southern NH real estate market in order to price their home correctly. All of the above steps will stall without setting a price that will make you happy and get a buyer to sign on the dotted line.

The Price is Right

In some ways selling your home as a FSBO will seem a little like the television game show "The Price Is Right." Some buyers will walk around your home and have no idea what local values are, but they will still do their best to talk down your price.

Others that come to view your FSBO will have a very firm grasp on local real estate values and how your home stacks up against the competition.

In either case, you must know what comparable homes in your area are selling for so that you can argue your own case and know when you are being under bid.

Overpricing is Costly

The temptation to want more than true market value for your home is common but counterproductive to selling your home. It’ll sit on the market so long that people will begin to wonder what’s wrong with your home. Then, when you drop your price, you’ll appear desperate. Potential buyers will devalue your house in their own minds, which decreases the chance of you getting a fair market price for your home.

If you have questions about the current Southern New Hampshire real estate market, give me a call today at 603-821-1134 or email me at Dave@DaveHeeter.com.