Welcome to Miami Miguel Frias Garcia agent real estate specialist and mortgage loans. Are you seriously thinking about buying, selling, or refinancing a property in the area of Miami or Broward County? Service and experience, accredit us as the first international real estate agency, we have thousands of houses and apartments to show, certainly now is the best time to buy property prices and mortgage loans have fallen a lot do not expect more The consultation is free call now miami dade: miami dade: 305-407-3547 broward county: 754-777-0807 thank you and congratulations !!!!

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FSBO Woes: Why It's So Hard to Sell Your Own Home ?

For most people, a for-sale-by-owner (FSBO) transaction simply isn't in the cards Granted, some people are able to sell their own homes without the services of a real estate agent. Some of these successful do-it-yourselfers are very experienced home sellers. Others are transferring ownership of their home to a child, a coworker or a tenant who's already living in the home. These circumstances are the exception, not the norm, however. For most people, a for-sale-by-owner (FSBO) transaction simply isn't in the cards. Here are five reasons why.

FSBOs can't list their home in the MLS.

FSBOs aren't permitted to put their home in the multiple listing service (MLS) because these industry membership organizations are open only to licensed real estate brokers and agents. FSBOs are also locked out of many home search engines and Web sites, including the gigantic Realtor.com. Sure, a determined FSBO can put a for-sale sign in his or her front yard and run a tiny advertisement in the local newspaper, but the home won't receive nearly as much exposure as it would through the MLS.

Realtors Agents won't show FSBO homes.

In a typical home sale, the buyer's agent receives a percentage of the commission that the seller pays the listing agent. Without a listing agreement, there's no guarantee that the buyer's agent will be compensated for his or her services, unless the buyer has signed a buyer's brokerage agreement that specifically provides for such compensation. Even if a FSBO offers to pay the buyer's side of the commission, most agents won't want to go through a transaction with an unsophisticated self-represented seller across the table. That means the pool of potential buyers for FSBO homes is limited primarily to unrepresented and probably unqualified prospects.

FSBOs usually overprice their home.

Like most homeowners, most FSBOs honestly believe their own home is worth more than comparable homes in the same neighborhood. Usually, they're wrong. A real estate agent can provide an update on market conditions, an assessment of the likely selling price of the home and tips for improving the home's buyer appeal. Overpricing a for-sale home is a sure way to deter potential buyers.

Buyers will feel intimidated.

Potential buyers will spend less time in a for-sale home if the owner is present during the showing, and they'll be shy about discussing its pluses and minuses with their own agent if the owner is within earshot. Buyers will also be less inclined to make an offer if they know they'll be negotiating directly with the seller. Having an agent on each side creates an effective emotional buffer between the seller and buyer.

FSBOs are likely to stumble into legal trouble.

Real estate transactions are fraught with potential liability for unwary sellers, particularly in states that have extensive disclosure requirements (e.g., California). A FSBO who overlooks even one required form or legally mandated disclosure could face a protracted and expensive buyer lawsuit after the transaction closes.

The seller cannot convey the property as promised.

The "typical" problem that occurs when dealing with a FSBO is the failure of the transaction to close. Only after a buyer is found, and a contract entered into, is it likely to be discovered that the sale cannot, in fact, be completed.

Usually, this is due to failure to understand, and research, the details outlined in Part I - preparing the home for sale legally. The result is that both the buyer and seller end up wasting valuable time and incurring expenses only to find that:

Typically this is due to state, local or association restrictions. Example: The purchaser agrees to buy for the purpose of using the property for a "home based business, or for keeping horses, or with the intention of adding a garage only to find out that the desired use is prohibited.

The seller cannot sell within the time frame specified in the contract.

The failure to realize that a deed will be required from the previous owner, or that it will take 45 days in order to obtain a Certificate of Occupancy (from inspection through repairs, re-inspection and issuance) or even that the local building department cannot approve the purchaser's building plans in a timely fashion often terminates a sale that could have been completed if it had been proper planned.

The seller cannot sell according to the terms of the contract.

It's not uncommon for sellers to agree to sell their property and allow the purchaser to assume the loan, only to find out the loan is either "due on sale" or permitted only if the purchaser applies for and obtains approval from the original lender.

Many a seller has also attempted to sell part of their real estate in a manner that would require partitioning. This is common for the sale of vacant land, but also occurs when the home is being sold, but the seller wishes to keep part of the land for themselves.

The average FSBO is completely unprepared to fully understand the complexities that many governmental agencies now place on the partitioning of real estate; and is often unable to complete the sale as negotiated due to this restrictions.

The seller cannot afford to sell.

Without fully understanding the costs associated with the sale of real estate, or the common requirement that future payments on special assessments be paid at closing, it is not unusual for a seller to find that they must actually bring money to the closing table.

This is most common where the owner has only purchased the property recently, has a government backed loan where the closing costs were added to the loan amount (creating a mortgage that's actually greater than the purchase price) or where substantial municipal improvements have been performed in the last few years, but are collected in smaller payments on the annual tax collection.

Once a seller in this position is faced with a closing statement that clearly requires they bring money to the closing, they may very well back out of the transaction. While the buyer may have the legal right to sue for performance, the length and cost of this type of proceeding seldom warrant it.

The purchaser cannot obtain financing

Failure to shop for an appropriate lender prior to offering the home for sale can often result in the purchaser's lender rejecting the loan.

This may occur for any number of reasons, ranging from non-conforming zoning use to the need for minor repairs. It all depends on the home, the purchaser, the loan program selected and the customs in the local market.

Issues of this nature can commonly be avoided, if they are known prior to offering the property for sale, and remedial measures are taken to either eliminate the objectionable condition or locate a lender who is willing to overlook the specific problem.

These types of financing problems are the most difficult to deal with, since they are not spelled out in any local ordinance or "home selling handbook." It is usually only experience that teaches the successful agent what areas of concern exists for financing property in each specific marketplace; and with which local lenders.

To say that the above examples represent only a partial list of the potential legal and technical problems that occur when dealing with "private" sellers is a understatement of vast proportion.

Owners simply do not have the knowledge, skills or experience to perform the necessary research, to correctly interpret the information or even to understand what factors must be considered prior to offering their homes for sale.

The typical result falls into one of two outcomes: The sale does not go through.

This may not initially sound as devastating as it really is. When the sale fails, it is usually only after weeks or even months from the date the contract was signed.

The purchaser has undoubtedly taken steps to terminate their previous living arrangements; invested in numerous non-refundable expenses with lenders, appraisers, inspectors and related acquisition costs; paid a heavy toll in terms of the stress that the sale's failure has created and will continue to create well into the future

The sale is consummated, at less than favorable terms

Given the consequences outlined above, it is unfortunately not uncommon for the purchaser to continue the sale, but only by suffering a valuable loss.

This loss might be manifested in paying excessive costs, that should not have to be borne by the purchaser. Excessive closing fees, transfer costs, or repairs required by the lender of a governmental agency would be common examples.

Or the buyer may very end up purchasing less than bargained for originally. Perhaps the buyer will have to accept less land, greater building and use restriction or the abandonment of their dream of owning horses and/or building a barn.

The real life concessions that buyers often must make to keep the ill-planned sale together are as varied as the homes themselves.

While working with a real estate professional is no guarantee of a smooth and flawless transaction, real history and fourteen years of experience as a real estate broker and educator has convinced me that when a buyer works directly with a "For Sale By Owner" it is an open invitation to a wide variety of potentially devastating problems.

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