Looking For An Affordable Dream Home This Year? 3 Ways You Can Navigate The Buying And Selling Process
If you have decided that you want to make 2017 the year you finally move out of that old starter home and into a home you love, then you may be confused over all of the new ways people are buying and selling homes. If you bought that home over two decades ago, then you likely simply called a real estate agent who helped you find your perfect home and get it for a great price. However, now that the internet has become popular, you may wonder if people today simply browse real estate listings on the internet and then "seal the deal" with the owners without consulting with agents or brokers.
Read on to learn the three ways you can go about buying your old home and purchasing your new one and the pros and cons of each.
1. You Can List Your Home FSBO and Then Buy a FSBO Home
The truth is that it is possible to sell your current home and then buy your new one without the help of real estate services. However, before taking this approach, you would need to educate yourself on your state laws about "seller disclosure" before you sell your current home, find out what homes of similar sizes and styles are selling for in your area (real estate agents call these comps), learn how to screen buyers to make sure they have the necessary funds or at least pre-approved mortgage applications before you sell your home to them, and draft up a "purchase and sale agreement" that is fully legal and binding according to state laws.
Then, when you are ready to begin the process of searching for your new dream home, you will have another learning experience on your plate. You will have to find out if your dream home is really worth the price it is listed at and learn the signs to look for when a home has damage that the seller may not be disclosing. While, of course, you will need to have that home fully inspected before you purchase it, each home inspection costs you money; if you have a home fully inspected only to find there is damage that would have been somewhat obvious to a more experienced homebuyer and you decide to "pass" on the home due to it, you will lose out on that hefty home inspection fee and have to pay for another one once you set your sites on a different home.
If you have feel you are up for the challenge, then selling your home FSBO (For Sale By Owner) and purchasing an FSBO home is an option that could save you a little cash. However, you could end up losing out if a real estate agent could have sold your home for more than you sold it for or got you a better price on that dream home due to their negotiating skills. In addition, if you accidentally omit a problem your home has from the seller disclosure, you could end facing a legal battle in court that leaves you liable for the cost of repair along with hefty legal fees.
2. You Can Get Help from an "A La Carte" Real Estate Service
If you have a little knowledge about the home buying and selling process, yet would like just a little help from a real estate professional or would just like to have one on hand in case you have any questions during the buying and selling process, then you may be able to find an "a la carte" real estate service that will help you through the process for a small flat fee.
In addition to being "on call" for all of your questions during the home buying and selling process, these real estate services often also list your home on their extensive MLS home database that buyer's real estate agents browse when searching for homes for their buyers.
3. You Can Have a Licensed Real Estate Agent Do All of the Buying and Selling "Grunt Work"
The truth is that even though when planning to purchase a new home, most buyers browse the "for sale" home internet listings during the home-buying process, 90 percent who browse the listings still purchase their homes with the help of a licensed real estate agent. This is likely because, while browsing for new "dream homes" is fun, the "grunt work" that must be performed during the buying process is not. When an agent is helping you buy your new home, you can enjoy the process much more without having to pay the agent a cent out of your pocket.
This statistic is also important when determining whether to receive the full help of a real estate service when selling your home. Due to the fact that almost 90 percent of home buyers are still guided through the entire process by an agent, listing your home FSBO may lead to you missing out on those potential buyers -- many real estate buyers agents don't show FSBO homes to their clients at all. With a very small percentage of home buyers who buy homes without the help of an agent, your potential buyer pool when you list your home FSBO is much smaller, which could lead to you having to sell your home for a much lower price than you expected.
If you are finally ready to sell that old starter home this year and purchase your dream home, then with the rise of internet home listings, you may wonder whether people today still sell and purchase homes with the help of real estate services or if many just go through the processes without them. While there are several options you have when it comes to selling your old home and buying your new one, remember that almost 90 percent of home buyers and sellers rely on real estate agents to guide them through every step of the way and just browse online home listings to get an idea of what homes are on the market.