By Heeran Workman
Have you wondered if you'll really saving money by using a discount commission real estate agent / Realtor when selling your home in the Omaha Metro area? How do the services differ between the two types of listings. Discount brokers say you'll save money on commission putting more money in your pocket. Is that really true? Let's analyze for a second.
Listing Agents/Realtors have 3 primary jobs:
1. Market the home for sale
2. Negotiate the contract for the seller
3. Manage the closing process
Market the home for sale
If buyers and buyers agents do not know that your home is available for sale, you will not get a contract because of lack of visibility. The multiple listing service has between 3,000-6,000 listings at any given time. A listed home is lost in the shuffle. It's like a resume that lands on a human resource manager's desk. Out of 100 resumes, the manager has to pick the 5 best candidates. Out of three to six thousand listings, a buyer's agent has to select the top 5-8 listings to show their buyer. Being listed in the MLS is not enough. A great full service agent who believes in the power of marketing, has the monetary resources, and has the intellectual know-how will do the following so that your listing gets amazing visibility:
1. Professional high-def photography so that the photos POP and catch buyers' eyes
2. Manual process for social media blitzs
3. Put you in the Real Estate Magazine (over 20,000 people view this every month)
4. Spend money to put you as a featured listing in top real estate websites like Trulia & Zillow
5. Spend time doing direct agent to agent prospecting
6. Put together awesome open houses with signs, internet postings, social media, & more!
7. Invest in an online task management system so that nothing gets missed
8. Invest in a showline service so that buyer's agents don't randomly show up at your door
9. Put together non-syndicated ads such as Craigslist
10. Utilize search engine optimization to place you manually on the web so that you can actually be found
Do discount agents have the funds and time to do all this? Absolutely not!!! If every home that was listed got sold, the market wouldn't have 25%-40% listings expiring every year. The agent that you hire will determine the success of your listing.
Negotiate the contract for the seller
Discount Realtors talk about the money you'll save on the commission. First of all, the way the industry works, there will most likely be a buyer's agent involved which means you have to pay the buyer side commission which is between 2.4% to 2.8% of the sales price anyways. A listing agent's job is to negotiate the highest price possible for their sellers. If a discount agent can't negotiate a normal listing commission for themselves, what do you think they are going to do when negotiating on your behalf. Wouldn't it make sense that they would give away your money faster than they just gave away their own? You should hire the toughest negotiator in the business to protect you. It's like going into a courtroom and hiring a lawyer. Do you want the toughest lawyer who will win the case or the lawyer who charges less and you'll ultimately lose? Worry about the net money you'll walk away with and not the listing side of the commission. Not paying attention to this will cost you big in the long run. The agent that you hire directly affects how much you'll walk away with at closing.
Manage the closing process
It's inevitable that during the closing process, something or things will go wrong. I have a dedicated closing specialist and her only job in the office is to take care of closing issues so that we get past them and make it to closing. Does a discount Realtor who has to sell double the listings to get the same commission a normal Realtor would make have the time to handle everything? We all only have 24 hrs in a day. Alot of discount Realtors also have other jobs during the day. They work their full-time job doing something else and sell real estate on the side to make extra money. Is this the type of agent you want working for you? Have you heard of part-time doctors- part-time financial analysts? No! We're talking about one of your biggest assets! Your money is on the line! Legal liabilities are on the line! Hire the best to represent you. What's the point of listing your home if you can't make it to closing?
For a free private home selling consultation, call Heeran Workman at RE/MAX PLATINUM at (402) 318-SOLD (7653).
Tuesday, March 25, 2014
For Sale By Owner Omaha - The Real Truth
By Heeran Workman
As a for sale by owner seller in the Omaha Metro area, you may have wondered how the process really works. Yes, you market your home FSBO, buyers look at your home, and a buyer will give you an offer and you close. We all know that. But have you asked yourself these following questions? Here's the truth.
1. What percentage of the market will FSBO sellers reach?
About 10%-15%.
2. What type of buyers purchase FSBO homes versus Realtor listed homes?
FSBO Buyers:
1. These will be buyers who have had great experiences buyer/selling FSBO previously
2. Real estate investors looking to bypass Realtors to pick up discounted homes
3. Buyers who are just starting the process (most of these buyers will hire agent representation at some point since the representation is free). These buyers typically search the internet and type "Homes for sale Omaha" They normally don't type in "Homes for sale by owner Omaha". Try going to google and type in both and see what pops up. Chances are, the FSBO homes are not even on the radar.
Realtor Buyers:
1. Buyers who are relocating to the Omaha, Metro area for job reasons. They don't know the area so they work with professionals who do.
2. First time home buyers who have never been through the process before and need guidance
3. Sellers who believe in representation to protect their interests. Buyer's agents represent buyers. Listing agents protect the interests of sellers.
4. Buyers who also have a home to sell. These buyers typically do not look at homes to purchase until they have a contract pending on the one they are selling. The buyers on the other end will typically give 30-40 days to close so at this point they are in a race to find one to purchase so that they can do a back to back closing. These buyers do not have time on their side. They work with Realtors to quickly look for a home to purchase.
2. If I'm willing to pay the buyer's agent side of the commission, will that persuade them to show my FSBO?
Maybe - maybe not. The multiple listing service has between 3000-5,000 listings at any given time. If the buyer's agent exhaust everything in inventory and cannot find the perfect home for their buyer, they may look to outside sources such as pocket listings (homes that Realtors know about but not on the market) or for sale by owner properties. Listing agents are protected by contracts-buyer's agents are not. At any point, there is a risk that the buyer might go around the buyer's agent and work directly with the seller and there is nothing that protects that Realtor's time, energy, and money working with that buyer. For this reason, Realtors prefer to work with listed property. Even if the FSBO transaction goes through and sellers are willing to pay the buyer's side of the commission, Realtors do not prefer these transactions. In a regular listed property, there are professionals on both sides of the transaction each responsible for their client's side of the work. In a FSBO transaction, the Realtor will have to do both sides of the work. That's similar to the seller doing their work and their co-worker's work for the same pay.
3. If I contact as many Realtors as possible to let them know I have a FSBO, what is the likelihood of them showing my home?
That's not really the way the industry works. When an agent lists a property, assuming they know how to market the home, that Realtor will reach over 3,000 agents. A fraction of the agents (let's say 15-30) which is less than 1% of the Realtor community will have a buyer who is looking for that type of home. Unless you're willing to contact all 3,000+ Realtors, it's really difficult to get lucky to call the right Realtor with the right buyer for your home.
4. Even if I save the list side of the commission, will I really net more?
Maybe-maybe not. Realtors account for 85-90% of the buyer market. If you're willing to pay the buyer's side of the commission and you end up selling your home for less than what you could have gotten by opening your home for sale to the entire market by working with a great Realtor, you may net the same or less by selling FSBO. A buyer typically won't tell you that they don't like your home or that the home is overpriced. They don't want to hurt your feelings. There is a reason why statistically, most FSBO's end up working with Realtors after wasting time, energy, and money trying the For Sale By Owner route. Work with Heeran's Home Team at RE/MAX PLATINUM and you can try FSBO and hire us to list and sell your home at the same time. If you end up finding a buyer, the listing will convert to a 1% FSBO Facilitation and we'll handle everything from contract to closing. Click Here To Get More Information About Our 1% FSBO program.
For a private home selling consultation, call Heeran Workman at (402) 318-SOLD (7653)
As a for sale by owner seller in the Omaha Metro area, you may have wondered how the process really works. Yes, you market your home FSBO, buyers look at your home, and a buyer will give you an offer and you close. We all know that. But have you asked yourself these following questions? Here's the truth.
1. What percentage of the market will FSBO sellers reach?
About 10%-15%.
2. What type of buyers purchase FSBO homes versus Realtor listed homes?
FSBO Buyers:
1. These will be buyers who have had great experiences buyer/selling FSBO previously
2. Real estate investors looking to bypass Realtors to pick up discounted homes
3. Buyers who are just starting the process (most of these buyers will hire agent representation at some point since the representation is free). These buyers typically search the internet and type "Homes for sale Omaha" They normally don't type in "Homes for sale by owner Omaha". Try going to google and type in both and see what pops up. Chances are, the FSBO homes are not even on the radar.
Realtor Buyers:
1. Buyers who are relocating to the Omaha, Metro area for job reasons. They don't know the area so they work with professionals who do.
2. First time home buyers who have never been through the process before and need guidance
3. Sellers who believe in representation to protect their interests. Buyer's agents represent buyers. Listing agents protect the interests of sellers.
4. Buyers who also have a home to sell. These buyers typically do not look at homes to purchase until they have a contract pending on the one they are selling. The buyers on the other end will typically give 30-40 days to close so at this point they are in a race to find one to purchase so that they can do a back to back closing. These buyers do not have time on their side. They work with Realtors to quickly look for a home to purchase.
2. If I'm willing to pay the buyer's agent side of the commission, will that persuade them to show my FSBO?
Maybe - maybe not. The multiple listing service has between 3000-5,000 listings at any given time. If the buyer's agent exhaust everything in inventory and cannot find the perfect home for their buyer, they may look to outside sources such as pocket listings (homes that Realtors know about but not on the market) or for sale by owner properties. Listing agents are protected by contracts-buyer's agents are not. At any point, there is a risk that the buyer might go around the buyer's agent and work directly with the seller and there is nothing that protects that Realtor's time, energy, and money working with that buyer. For this reason, Realtors prefer to work with listed property. Even if the FSBO transaction goes through and sellers are willing to pay the buyer's side of the commission, Realtors do not prefer these transactions. In a regular listed property, there are professionals on both sides of the transaction each responsible for their client's side of the work. In a FSBO transaction, the Realtor will have to do both sides of the work. That's similar to the seller doing their work and their co-worker's work for the same pay.
3. If I contact as many Realtors as possible to let them know I have a FSBO, what is the likelihood of them showing my home?
That's not really the way the industry works. When an agent lists a property, assuming they know how to market the home, that Realtor will reach over 3,000 agents. A fraction of the agents (let's say 15-30) which is less than 1% of the Realtor community will have a buyer who is looking for that type of home. Unless you're willing to contact all 3,000+ Realtors, it's really difficult to get lucky to call the right Realtor with the right buyer for your home.
4. Even if I save the list side of the commission, will I really net more?
Maybe-maybe not. Realtors account for 85-90% of the buyer market. If you're willing to pay the buyer's side of the commission and you end up selling your home for less than what you could have gotten by opening your home for sale to the entire market by working with a great Realtor, you may net the same or less by selling FSBO. A buyer typically won't tell you that they don't like your home or that the home is overpriced. They don't want to hurt your feelings. There is a reason why statistically, most FSBO's end up working with Realtors after wasting time, energy, and money trying the For Sale By Owner route. Work with Heeran's Home Team at RE/MAX PLATINUM and you can try FSBO and hire us to list and sell your home at the same time. If you end up finding a buyer, the listing will convert to a 1% FSBO Facilitation and we'll handle everything from contract to closing. Click Here To Get More Information About Our 1% FSBO program.
For a private home selling consultation, call Heeran Workman at (402) 318-SOLD (7653)
Tuesday, March 11, 2014
How To Sell Your Home For Sale By Owner - Heeran Workman - RE/MAX Omaha Nebraska
Realtor With RE/MAX The Producers, Omaha Nebraska
Phone: (402) 318-SOLD (7653)
Email: Heeran@HeeransHomeTeam.com
Phone: (402) 318-SOLD (7653)
Email: Heeran@HeeransHomeTeam.com
1. 1. Do your homework and research the local housing market
There are many legal and financial implications regarding selling real estate: mortgages, contracts, disclosure forms, contingencies, inspections, chain of title, title defects, title insurance, escrow, deeds, and most importantly negotiations. When selling for sale by owner, you will not have a real estate professional to lean on when you or your buyers have questions about the home selling and closing process so be familiar with the process, paperwork, issues that could cause hiccups, and lending guidelines so that you can accomplish the sale. Read a book or two on the home selling process. Research the internet. Buyers are very nervous about buying a home and if you and the buyers are sitting there wondering what the next step of the process is, you may not have a successful transaction. Finally, consider how you want to structure the deal. Will you want to offer such incentives as owner-financing and determine if you will sell to only conventional buyers or also include the FHA/VA market.
3. Run The Numbers To Sell Your Home
Figure out the numbers before you get started. If you're loan balance is high, it's critical that you know the real numbers before spending time, energy, and money marketing your fsbo. Call me if you need a copy of the seller's estimated cost to sell. Also, there are some FSBO sites that will want you to pay money upfront for this, that, and the other thing. Be careful. The last thing you want to do is to spend a whole bunch of money just to scrap it all and then hire a Realtor later. There is nothing better than social media to get your FSBO out there and it's free. Also, pay attention to how much you'll net versus only thinking about the commission you'll save. Realtors account for 85-90% of the buyer market. If you're willing to pay the buyer's side of the commission and you end up selling your home for less than what you could get had you open your home for sale to the entire market by working with a great Realtor, you may net the same or less by selling FSBO. Ever wonder if paying the buyer's commission will really persuade Realtors to show your FSBO? Click Here To Read More.
3. Prepare your home for sale
Curb appeal matters-First impressions make a difference. Cut overgrown bushes, get a green plush lawn, get rid of chipping paint, and paint the exterior of the home. If you can't get people in the door, you're not going to sell the home. Repair all of the to do items that you've been meaning to do for months. Stage the house. Staging involves deeply cleaning, decluttering, depersonalizing and arranging furnishings to make your house as appealing as possible. People buy logically and emotionally. They will use all their senses to determine if the house works for them.
4. Price The Home To Sell Instead Of To Sit Stale
The biggest mistake a for sale by owner will make is to price the home too high for the market. It will scare off potential buyers and make the house look stale. Trust me, the last thing you want buyers to wonder is “What’s wrong with this home?” Price it right and you won’t have this problem. To find a general value on your home and neighborhood, you can start by entering your address on Zillow and Trulia to find your estimated home value and nearby sales within the past six months. If you want a true market analysis of your neighborhood and your style of home, you can contact a Realtor to run the true and detailed analysis out of the Multiple Listing Service. Take into account the upgrades and special features of your home but don't be unrealistic about the value of them. You should not expect to capture 100% of the upgrade cost. If you factor in capturing about 70-75%, that is a better estimate. Your advantage as a FSBO seller is that you can afford to offer a more competitive price than sellers using Realtors. Buyers know that you are saving on the commission and it’s natural that they want “IN” on it by getting a better deal on the home. They will expect a 2 to 3% discount off of competing homes.
5. Market the home for sale
Putting up a for sale sign in the yard won’t do much good. The FSBO’s who are successful believe in the power of marketing and allocate a certain budget and time to do it. Be careful with putting street signs! The county has strict rules and they can fine you per every sign that is in the wrong place! Write great ads for the internet such as Zillow and Craigslist. Hire a professional photographer to take great photos. First impressions make a difference. If buyers don’t like what they see in photos, they won’t call you to schedule a showing. A great photographer in the Omaha Metro Area is Min Chu Yi. His website is http://omaharep.com/. If you love talking with people over the phone, feel great about them coming over to show the house, and don’t mind doing open houses, you may have a lot of fun with the for sale by owner process. Make sure the buyers tell you they are preapproved for a loan before scheduling the showing. When a home is listed, each showing is a privately scheduled showing with an agent and the buyers are already preapproved. You won’t have this luxury as a for sale by owner seller. Also, spread the word on social networking sites, people at work, and anyone and everyone who may need to know that you have a home for sale by owner. If you consider how long some houses stay on the market even when they are listed, it generally takes much longer to complete a for sale by owner transaction because you are dealing with many more dreamers than buyers. You have to filter through a lot more people who do not have the ability to purchase.
6. Negotiating The Home Sales Terms
Sellers who are successful in for sale by owner transactions often love the negotiations process and are prepared for the offer and counteroffer process. Everything in the world of real estate is negotiable. But not everything in the world of real estate will pass the lender’s underwriting. Make sure that the type of loan the buyer can get matches up with the type of home you are selling. Otherwise, you might be paying thousands if your house doesn’t pass VA/FHA insurable guidelines. Do not put "Willing To Negotiate" on your ads. The whole reason you are selling for sale by owner is to net as much money possible. It doesn't make sense to go through the hassles of selling FSBO to save on commission just to walk away with less or the same had you hired a great agent by getting a better price.
7. Closing the home sale transaction
Remember, as a for sale by owner, you do not have a Realtor to be the facilitator and guide you through the home inspection, radon inspection, termite inspection, appraisal process, underwriting process, and dealing with the escrow company to close. You have to act as your own general contractor in this case. Be prepared for obstacles and delays along the way because most of the time, there will be problems resulting from inspections, appraisals, and underwriting. These people are there to do a job regardless of what you and the buyer really want.
Need For Sale By Owner Help? Heeran’s Home Team offers a 1% For Sale By Owner Facilitation Service to assist savvy Omaha Metro Area home sellers who wish to embark on selling their home “For Sale By Owner" for only 1% of the sales price. We're here to help with your FSBO home sale.
You'll receive:
1. Market Analysis – Correctly price your Omaha Metro Area Home
2. Contracts and Forms - Legal documents you need to complete your entire transaction and contingency releases
3. Home Inspection Walkthrough- We will attend the buyer’s home inspection walk-through. The inspector is paid hundreds of dollars to find things that are wrong with the home. We will be there to calm the buyer’s nerves and to explain how to move forward with the transaction.
4. Additional Resources & Management – To manage the entire home selling and closing process from beginning to end. There are many legal and financial implications regarding selling real estate. We can help with all the resources your transaction needs including: mortgages, contracts, disclosure forms,contingencies, inspections, chain of title, title defects, title insurance, escrow, and deeds.
5. Option to list your home on the MLS with the ability to still sell For Sale By Owner (FSBO). For Sale By Owner Sellers only reach 10-15% of the buyer market. Together, we can reach 100% of the market at the same time. During the listing period, if you find your own buyer, we'll handle everything from contract to closing for 1%. Otherwise, it will close as a listing.
If you would like a detailed explanation on how Heeran's Home Team can work with you to sell your property For Sale By Owner, contact us today by calling (402) 318-SOLD (7653)! Visit our website at http://www.HeeransHomeTeam.com or email Heeran@HeeransHomeTeam.com
Saturday, February 22, 2014
Omaha Top Producing Realtor - Heeran Workman, MBA RE/MAX Omaha Nebraska
By Heeran Workman MBA
Friday, February 7, 2014
1% For Sale By Owner Help Program For Omaha Sellers
1% For Sale By Owner Facilitation
Heeran's Home Team has developed a program to help savvy Omaha Metro Area home sellers who wish to embark on selling their home “For Sale By Owner" for only 1% of the sales price. We're here to assist you with your FSBO home sale.
You'll receive:
1. Market Analysis – Correctly price your Omaha Metro Area Home
2. Contracts and Forms - We will assist with the legal documents you and the buyer need to complete your entire transaction and contingency releases.
3. Home Inspection Advisement- We will go through the home inspection report with the buyer. The inspector is paid hundreds of dollars to find things that are wrong with the home. We will be there to calm the buyer’s nerves and to explain how to move forward with the transaction.
4. Additional Resources & Management – To manage the entire home selling and closing process from beginning to end. There are many legal and financial implications regarding selling real estate. We can help with all the resources your transaction needs including: mortgages, contracts, disclosure forms,contingencies, inspections, chain of title, title defects, title insurance, escrow, and deeds.
5. Option to list your home on the MLS with the ability to still sell For Sale By Owner (FSBO). For Sale By Owner Sellers only reach 10-15% of the buyer market. Together, we can reach 100% of the market at the same time. During the listing period, if you find your own buyer, we'll handle everything from contract to closing for 1%. Otherwise, it will close as a listing.
By: Heeran Workman, MBA
Heeran workman in OMAHA, NEBRASKa is a top producing realtor HELPING BUYERS AND SELLERS WITH THEIR REAL ESTATE NEEDS. We sell 10-12 times the number of homes versus the average agent. WE SPECIALIZES IN THE OMAHA METRO AREA INCLUDING MILLARD, GRETNA, BELLEVUE, BENNINGTON, ELKHORN, DISTRICT 66, PAPILLION, LA VISTA, RALSTON, AND FREMONT.
Heeran's Bio
- Former Tom Ferry International Business Coach (#1 Real Estate Coaching Company In The World)
- One Of The Metro's Top Producing Teams Year After Year
- Hundreds Of Satisfied Clients
- 2016 and 2017 RE/MAX International Platinum Award Recipient
- 2015 Top Omaha Brokers Panel Expert for Women's Council of Realtors
- 2013 , 2014, and 2015 Nebraska Realty Award Winner For Top Salesperson, Top Team, & Top Listing (Over 300 Agents)
- 2012 Omaha Area Board of Realtor’s Top Producer’s Panel Expert
- 2012 Women’s Council of Realtor’s Top Producer’s Panel Expert
- Certified Luxury Home Marketing Specialist
- Real Estate Trainer
- Realtor Since 2003
- Real Estate Investor Since 2002
- National Association of Realtors
- Omaha Area Board of Realtors
- Foreclosure Expert
- Licensed In Both Nebraska and Iowa
- Creighton University Alumni
- Bachelors Degree In Accounting, December 1997
- Masters Degree, IT, May 2000
- MBA, December 2000
- Westside High School Alumni, May 1994
- 3 Commission Plans– Seller Chooses
- 1% “For Sale By Owner” Facilitations
- We Spend 10-12 Times More In “Out Of The Box” Home Marketing Strategies And Resources So That Our Seller Clients Receive Top Dollar For Their Properties
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