Searching for the right estate agent when you have made the decision to 'Sell My House' is not as easy as you first think as the level of service and commission charges can vary greatly. With interest rates on the rise and the ever growing threat of property prices falling, more and more people are looking to get the maximum price when selling their own home. The average property price in the UK is now over £215,000 with estate agents charging commission between 1 and 2.5% plus VAT and these expensive fees can make a large impact on the profit you make.
There is now however an alternative way to market and sell you own home. With an estimated 75% of people now searching the internet for properties online using a specialised site designed to sell your house privately online is a great way to do this. This cut's out the estate agent and can save you £1000's on expensive commission fees.
Why should you make the choice to 'Sell My House Online' instead of using an estate agent? Because the vast majority of estate agents just send viewers round without accompanying them, leaving you to do the most important part of the process - actually selling your home to the potential buyer. Remember, estate agents are paid every time a buyer takes one of their properties, regardless of which property it is - your property is just one of many they can send the buyer to.
Many people market their houses privately as well as with an estate agent. If you do this, make sure the demarcation line is clear. If an agent can claim to have introduced you to a buyer, albeit indirectly, he is still entitled to his commission.You will need to check which type of agreement you have set up with your Estate Agent. If you have a Sole Agency Agreement you can usually sell your house privately without paying them commission. If you have a Sole Sale Agreement you may still be required to pay them commission if you sell your property even if they did not introduce the buyer. It is always recommended to check this before you market your property privately online.
Take responsibility for putting a realistic valuation on your house. You might like to get it valued by more than one estate agent but be aware they are competing with each other to get your business and there valuation may be higher than the current market value. You can check out the price of similar properties in the area by visiting the Land Registry site (www.landregistry.co.uk) to see what prices properties have fetched recently in your local area.
When you are choosing a site to advertise on browse the site for usability and look at the quality of marketing you are getting for your money. High quality images and an easy to navigate site that professionally markets your property will not only engage your customer's interest but also give them the confidence to pick up the phone and contact you about your property.
It used to be difficult to market your property as you were limited to newspaper adverts, for-sale signboards and word-of-mouth. Now you can use the internet to promote your property sale to anyone with Internet access across the UK and around the world. Making the decision to 'Sell My House Online' can save thousands of pounds offering an enormous advertising medium enabling you to expose and promote your property to a huge audience of potential buyers.
Paul Rice is an internet entrepreneur who own a number of prestigious Internet business' including an Award Winning Web Design & Development company, Ricemedia which is responsible for creating hundreds of UK sites. All of his experience and knowledge has been channeled into The House Sale which lets you 'sell my house online', making it one of the best private house sale web sites of our day.
Article Source: http://EzineArticles.com/?expert=Paul_P_Rice
How to Write a Newspaper Ad For Selling Your Home
Selling a home entails a lot of paper work from coming up with counter proposals, sales agreement to home warranties, appraisals and not to forget, print advertisements. Advertising your home is one of the most effective ways of attracting potential buyers and doing it the traditional way is still a tested and proven option. This means placing advertisements in local newspapers in your area.
Home sellers need to advertise their home to as many targeted home buyers as possible and the newspaper is a popular medium for doing this. Despite the entry of electronic media, it's still a preferred place to advertise a home for sale. In fact, even non-subscribers will normally get a copy of the Sunday newspaper to read through the classified ads.
In writing advertising copy for newspapers, there are some guidelines you can follow to succeed in attracting your target audience. Your newspaper ad has to be the hard-sell type meaning, straightforward and concise. Depending on your budget, you can either place a short ad or a longer one complete with a photograph of the home you are selling.
The headline itself should already grab attention. Determine the most important and attractive aspect of the home and describe them in short and catchy words. Some examples would be charming and spacious home, upscale urban condominium, beautiful secret garden and secluded hideaway. An example of a specific headline would be "Charming home beside a lake with pristine forest."
The copy or text of your print advertisement has to be attractive, of course. It should easily catch the attention of the reader and entice him or her to take action. Keep your copy short and direct to the point but never make the mistake of abbreviating words or using too many details in just three lines in order to save money.
In describing the home for sale, avoid too many specific facts especially numbers such as those pertaining to the house area or lot area. Instead, use general terms to relay the same message such as a large house or spacious living room.
Use descriptive adjectives to enable readers and potential buyers to picture out the home they could be living in. Describe the home's qualities such as its architectural design, layout and flow, special amenities and upgrades done, entertainment options and nearby attractions.
Remember to specify also the exact location, number of bedrooms and bathrooms, the sales price and your contact information. Putting the price information on top of the ad is also a good way of attracting serious buyers. You can then mention if your price is negotiable or if financing is available. Some people forget these important details and as a result, just let a good opportunity pass up.
Advertising in a magazine has some drawbacks compared to newspaper ads. This option is not likely to produce an immediate buyer and may actually take your home several months before it gets results. Also, few people read their magazines again. Magazine advertising is ideal if you have a small target audience.
Your best option then is to combine newspaper classified ad with online advertising to reach as many buyers as possible. Keep in mind that your goal is to heighten people's interest in your home and make them look deeper into your offer.
LegalHomeForms.com - Download over 60 of the most used real estate contract and forms. Find forms like the quit claim deed, or offer to purchase real estate form.
Article Source: http://EzineArticles.com/?expert=Gloria_Smith
Home sellers need to advertise their home to as many targeted home buyers as possible and the newspaper is a popular medium for doing this. Despite the entry of electronic media, it's still a preferred place to advertise a home for sale. In fact, even non-subscribers will normally get a copy of the Sunday newspaper to read through the classified ads.
In writing advertising copy for newspapers, there are some guidelines you can follow to succeed in attracting your target audience. Your newspaper ad has to be the hard-sell type meaning, straightforward and concise. Depending on your budget, you can either place a short ad or a longer one complete with a photograph of the home you are selling.
The headline itself should already grab attention. Determine the most important and attractive aspect of the home and describe them in short and catchy words. Some examples would be charming and spacious home, upscale urban condominium, beautiful secret garden and secluded hideaway. An example of a specific headline would be "Charming home beside a lake with pristine forest."
The copy or text of your print advertisement has to be attractive, of course. It should easily catch the attention of the reader and entice him or her to take action. Keep your copy short and direct to the point but never make the mistake of abbreviating words or using too many details in just three lines in order to save money.
In describing the home for sale, avoid too many specific facts especially numbers such as those pertaining to the house area or lot area. Instead, use general terms to relay the same message such as a large house or spacious living room.
Use descriptive adjectives to enable readers and potential buyers to picture out the home they could be living in. Describe the home's qualities such as its architectural design, layout and flow, special amenities and upgrades done, entertainment options and nearby attractions.
Remember to specify also the exact location, number of bedrooms and bathrooms, the sales price and your contact information. Putting the price information on top of the ad is also a good way of attracting serious buyers. You can then mention if your price is negotiable or if financing is available. Some people forget these important details and as a result, just let a good opportunity pass up.
Advertising in a magazine has some drawbacks compared to newspaper ads. This option is not likely to produce an immediate buyer and may actually take your home several months before it gets results. Also, few people read their magazines again. Magazine advertising is ideal if you have a small target audience.
Your best option then is to combine newspaper classified ad with online advertising to reach as many buyers as possible. Keep in mind that your goal is to heighten people's interest in your home and make them look deeper into your offer.
LegalHomeForms.com - Download over 60 of the most used real estate contract and forms. Find forms like the quit claim deed, or offer to purchase real estate form.
Article Source: http://EzineArticles.com/?expert=Gloria_Smith
FSBO Marketing - The Dream Niche For Mortgage Brokers
Apparently, I got on someone's e-mail list last week. I've been getting more and more of these e-mails buzzing about FSBO Marketing. Does it work? Can I really get loans by marketing to FSBO's? For those of you who don't know what a FSBO is - it's code for - For Sale By Owner. Now, most of the articles I write are written to Realtors. I believe Realtors came up with the acronym FSBO. My point is that FSBO Marketing has been around awhile. And it's just NOW that Mortgage Professionals all over the country are warming up to this Dream Niche. I personally have been marketing to this group for years now.
The only difference now verses back then is - we've created better mouse traps - so to speak. But, let me speak frank and talk to you now as a Mortgage Professional - who has 20 some plus years under his belt. When our market went BUST, you were faced with three choices you could make. The first choice - Get out, and many did and some still are. The second choice - Keep doing the same old thing, paying for internet leads... hoping that someone will want to refinance their mortgage. Or the third choice - Niche! Most of us realize that markets run in cycles. Back in the 80's - in the Retail Market - the BIG super stores like Wal-Mart and K-Mart came on the scene. Mom and Pop Stores were left with the same choices we now have. Get out of the business... get clobbered by the competition... or Niche. And so now we have retail stores like Victoria Secrets and Starbucks who have created a Niche.
Well, the Mortgage and Real Estate industries are no different. Right now, the Mortgage Companies and LO's that are having success are the ones that are knowledgeable in FHA products, VA loans, Jumbo Mortgages and Small Commercial to name a few. More importantly, they have Marketing Systems in place that promote themselves as experts on these particular products and programs. These Marketing Systems then create streams of revenue by focusing on relationships with different groups. It is there that they have created a Niche. They have carved out a segment of the population who they want to have a relationship with. Don't confuse products and programs with a Niche. Because look... we all know the Mortgage Professional who knows their products and programs inside and out but, doesn't have any business. Their pipeline is empty! They don't know when they will get another paycheck. They don't even know where their next deal is coming from. They spend 80% or more of their time physically doing the loan and 20% or less of their time marketing. This should not be so.
It should be the other way around. What does all of this have to do with FSBO Marketing? Everything! Here's why. It's not marketing, unless it's measurable. Unless you know where your home buyer leads are coming from. Unless you know how many home buyer leads will be there each week and each month. Unless you know how many of those leads it takes to convert or close a loan. Unless you know approximately how much you will make on each file... it's not marketing. So, a Niche is a group? A group of people that YOU want to have a RELATIONSHIP with. FSBO Marketing is more than just putting a sign in the yard that has a call capture number on it. It's about helping a home seller market their property. That FSBO, who YOU have built a RELATIONSHIP with... will soon become a HOME BUYER. And guess who will be in the front of their mind when it comes time to get a new house and mortgage? Is that why you call FSBO Marketing - The Dream Niche for Mortgage Brokers? Well, before I answer that, let me say this. I feel that every Mortgage Professional should be marketing to at least 4 - 5 groups of people. That's right! That way if one income stream dries up do to the market conditions - you still have 3 - 4 groups bringing you in income. Here are some ideas of groups that you may want to consider marketing to.
FSBO's, Realtors, First Time Home Buyers, Veterans, Military People, Newlyweds, Accountants and Financial Planners.
I personally market to Realtors all the time, because they touch about 80% of the market. To ignore this group would be marketing suicide. So, now let me tell you why I think FSBO Marketing is The Dream Niche for Mortgage Brokers. It is because YOU will be maximizing your marketing efforts by essentially working with 3 groups at once. Buyers Agents, because you now have the qualified home buyers... the home Seller, who will become a Buyer... and First Time Home Buyers. I have found that most buyers that look at FSBO's are First Time Home Buyers looking for that fantastic deal. Oh, and there's one other reason why it's the Dream Niche! My partner and I were just talking about it this very thing this morning. It's the fact that FSBO Marketing is one of the fastest ways to grow your database. I will have to talk more about that some other time. Until then, Niche!
Jim Eggers is an Author and the National Sales / Marketing Director for ByOwner247.com. He and his partner Chris Clements are FSBO Marketing Experts. They provide Mortgage Originators and Realtors with all the tools necessary to be successful at FSBO (For Sale By Owner) Marketing. You can get more information by going to http://www.UltimateFSBOMarketing.com or you may contact Jim directly at 239-878-7873 or by email at jim@ByOwner247.com
Article Source: http://EzineArticles.com/?expert=Jim_Eggers
The only difference now verses back then is - we've created better mouse traps - so to speak. But, let me speak frank and talk to you now as a Mortgage Professional - who has 20 some plus years under his belt. When our market went BUST, you were faced with three choices you could make. The first choice - Get out, and many did and some still are. The second choice - Keep doing the same old thing, paying for internet leads... hoping that someone will want to refinance their mortgage. Or the third choice - Niche! Most of us realize that markets run in cycles. Back in the 80's - in the Retail Market - the BIG super stores like Wal-Mart and K-Mart came on the scene. Mom and Pop Stores were left with the same choices we now have. Get out of the business... get clobbered by the competition... or Niche. And so now we have retail stores like Victoria Secrets and Starbucks who have created a Niche.
Well, the Mortgage and Real Estate industries are no different. Right now, the Mortgage Companies and LO's that are having success are the ones that are knowledgeable in FHA products, VA loans, Jumbo Mortgages and Small Commercial to name a few. More importantly, they have Marketing Systems in place that promote themselves as experts on these particular products and programs. These Marketing Systems then create streams of revenue by focusing on relationships with different groups. It is there that they have created a Niche. They have carved out a segment of the population who they want to have a relationship with. Don't confuse products and programs with a Niche. Because look... we all know the Mortgage Professional who knows their products and programs inside and out but, doesn't have any business. Their pipeline is empty! They don't know when they will get another paycheck. They don't even know where their next deal is coming from. They spend 80% or more of their time physically doing the loan and 20% or less of their time marketing. This should not be so.
It should be the other way around. What does all of this have to do with FSBO Marketing? Everything! Here's why. It's not marketing, unless it's measurable. Unless you know where your home buyer leads are coming from. Unless you know how many home buyer leads will be there each week and each month. Unless you know how many of those leads it takes to convert or close a loan. Unless you know approximately how much you will make on each file... it's not marketing. So, a Niche is a group? A group of people that YOU want to have a RELATIONSHIP with. FSBO Marketing is more than just putting a sign in the yard that has a call capture number on it. It's about helping a home seller market their property. That FSBO, who YOU have built a RELATIONSHIP with... will soon become a HOME BUYER. And guess who will be in the front of their mind when it comes time to get a new house and mortgage? Is that why you call FSBO Marketing - The Dream Niche for Mortgage Brokers? Well, before I answer that, let me say this. I feel that every Mortgage Professional should be marketing to at least 4 - 5 groups of people. That's right! That way if one income stream dries up do to the market conditions - you still have 3 - 4 groups bringing you in income. Here are some ideas of groups that you may want to consider marketing to.
FSBO's, Realtors, First Time Home Buyers, Veterans, Military People, Newlyweds, Accountants and Financial Planners.
I personally market to Realtors all the time, because they touch about 80% of the market. To ignore this group would be marketing suicide. So, now let me tell you why I think FSBO Marketing is The Dream Niche for Mortgage Brokers. It is because YOU will be maximizing your marketing efforts by essentially working with 3 groups at once. Buyers Agents, because you now have the qualified home buyers... the home Seller, who will become a Buyer... and First Time Home Buyers. I have found that most buyers that look at FSBO's are First Time Home Buyers looking for that fantastic deal. Oh, and there's one other reason why it's the Dream Niche! My partner and I were just talking about it this very thing this morning. It's the fact that FSBO Marketing is one of the fastest ways to grow your database. I will have to talk more about that some other time. Until then, Niche!
Jim Eggers is an Author and the National Sales / Marketing Director for ByOwner247.com. He and his partner Chris Clements are FSBO Marketing Experts. They provide Mortgage Originators and Realtors with all the tools necessary to be successful at FSBO (For Sale By Owner) Marketing. You can get more information by going to http://www.UltimateFSBOMarketing.com or you may contact Jim directly at 239-878-7873 or by email at jim@ByOwner247.com
Article Source: http://EzineArticles.com/?expert=Jim_Eggers
Flat Rate MLS - Using a Flat Rate MLS Service Will Save You Thousands of Dollars
In order to sell your home quickly (or at all) you need to make sure it is positioned in such a way that it will be seen by as many buyers as possible. In order to do this your house must be listed in MLS (multiple listing service). One of the easiest and cheapest ways to do this is to go with a flat rate MLS service. There are several distinct advantages to using a flat rate MLS service over the more traditional methods.
First though, you need to understand how the MLS system works. A multiple listing service is basically an online compilation of property available for a specific region. Any home that is being sold through a realtor will be listed in that region's MLS. And, realtors are only going to show homes to their buying customers that are listed in their region's MLS. Therefore, if you want your house to sell you must be listed in MLS.
Unfortunately, the only way to get listed in MLS is by hiring the services of a real estate agent. You either have the choice of paying the real estate agent a percentage of the sale price or going with a flat rate MLS service that is going to allow you to pay a one time flat fee to get your house listed in your region's MLS.
Since most real estate agents charge 6% of the sale price in order to sell your home, the savings can be rather substantial when you go with a flat rate MLS listing service instead. Take for example a home listed at $300,000. When that home sells, the seller is going to pay his real estate agent $18,000 in real estate commissions. If you use a flat rate MLS listing service, however, you can get your house listed for only a few hundred dollars. Of course, if the buyer brings their own real estate agent you must still pay that agent their half of the commission (which is 3%), but that's still a savings of almost $9,000. Plus many flat rate MLS services even provide extras such as lockboxes, "for sale" signs, and contract forms. So if you want to sell your home on your own and you actually want your house to sell, research some of your local realtors that offer a flat fee service.
If you want to get your house listed in the Mid-Florida Regional MLS using a flat rate MLS service then make sure to call Tanya Waxler from uKeepCommission Real Estate. Tanya offers the best flat rate service and pricing anywhere and includes lockboxes, "for sale" signs, and all contract forms. For more information on how Tanya Waxler and uKeepCommission Real Estate can save you thousands of dollars visit http://www.uKeepCommission.com or call 941-465-9207.
Article Source: http://EzineArticles.com/?expert=Tanya_Waxler
First though, you need to understand how the MLS system works. A multiple listing service is basically an online compilation of property available for a specific region. Any home that is being sold through a realtor will be listed in that region's MLS. And, realtors are only going to show homes to their buying customers that are listed in their region's MLS. Therefore, if you want your house to sell you must be listed in MLS.
Unfortunately, the only way to get listed in MLS is by hiring the services of a real estate agent. You either have the choice of paying the real estate agent a percentage of the sale price or going with a flat rate MLS service that is going to allow you to pay a one time flat fee to get your house listed in your region's MLS.
Since most real estate agents charge 6% of the sale price in order to sell your home, the savings can be rather substantial when you go with a flat rate MLS listing service instead. Take for example a home listed at $300,000. When that home sells, the seller is going to pay his real estate agent $18,000 in real estate commissions. If you use a flat rate MLS listing service, however, you can get your house listed for only a few hundred dollars. Of course, if the buyer brings their own real estate agent you must still pay that agent their half of the commission (which is 3%), but that's still a savings of almost $9,000. Plus many flat rate MLS services even provide extras such as lockboxes, "for sale" signs, and contract forms. So if you want to sell your home on your own and you actually want your house to sell, research some of your local realtors that offer a flat fee service.
If you want to get your house listed in the Mid-Florida Regional MLS using a flat rate MLS service then make sure to call Tanya Waxler from uKeepCommission Real Estate. Tanya offers the best flat rate service and pricing anywhere and includes lockboxes, "for sale" signs, and all contract forms. For more information on how Tanya Waxler and uKeepCommission Real Estate can save you thousands of dollars visit http://www.uKeepCommission.com or call 941-465-9207.
Article Source: http://EzineArticles.com/?expert=Tanya_Waxler
Common Commercial "For Sale by Owner" Mistakes
Due to our commercial for sale by owner, co-marketing program, we witness many commercial property owners market and go through the "process" of selling their buildings, without the aid of a real estate broker. Although the experience can be painful, selling on your own is doable; especially if you know what you are doing.
Below are a few of the common mistakes we see owners make.
Over Pricing Property
Over pricing the property is a huge deterrent and major common mistake that sellers make. Most buyers that feel a property is over priced quickly move on. Serious buyers normally inspect many properties and learn market values. Sellers often think that if a buyer is interested, they will just submit a lower offer; that idea rarely works.
Many sellers are simply unrealistic and fail to do their homework on value. Getting "comparable recent sales" information is needed. Understanding the income approach to value is also critical. Hiring an appraiser is the most reliable and accepted way to determine market value. Information on other buildings sold in your city can be found at the assessing department as well.
This is a painful point for many sellers if they have put a lot of money into a property. Especially for owner occupants (Business that own and operate out of the building). The hard fact is that it is very possible to over improve a property.
We see owners try to sell on their own for many months, carry the costs of ownership, give up, then list with a broker - only then to lower the asking price.
Lack of Knowledge on Handling Paperwork.
Selling a property, especially one with issues (environmental concerns, title issues, zoning infringements, etc.) can be complicated. The paperwork can be intimidating and needs to be done correctly. Not knowing how to handle the paperwork will quickly kill any potential deals.
The buyer needs confidence that they can successfully close, without violating any laws or creating long term legal issues. Not teaming up with professionals to help with the details can be a mistake.
Putting the Property Under Contract without Pre-Screening (Pre-Approving) the Buyer First.
We have seen much wasted time and effort on buyers that could never qualify for a loan in the first place. It is a needless mistake.
Sellers are anxious that they have an offer and want to move forward. They put their property under contract with the buyer, taking the building off the market (perhaps missing a legitimate buyer) and incur the carrying costs while they wait (often for several months) for the buyer to perform its due diligence and obtain the needed financing. Only later to learn that the buyer could never have been qualified in the first place.
Besides the frustration of this scenario there are legal issues (risks) and costs of putting your property under contract as well. Although there will always be risk of losing buyers (for many reasons), you can avoid this one by requesting that your buyers books are reviewed and receiving "pre-approval" letters from finance companies.
Not Being Accessible
Pretty simple, buyers are demanding, forgetful and busy. If they try to schedule an appointment to inspect your property and you can not accommodate their schedule, or return their calls, they'll give up and move on to the next facility.
Property not Presentable
Common sense stuff here as well but we see many owners fail to clean the facility adequately and or not having basic components of the building functioning (Roll up doors, broken windows, HVAC units, alarm systems, etc.).
Unrealistic about Marketing
Simply having a sign on the front of the building is not enough. Perhaps one of the neighboring businesses will be interested, but counting on that alone will probably be a mistake - resulting in increased marketing time and thus increasing your carrying costs. The idea is to maximize your buildings exposure to get it in front of as many buyers as possible.
Listed are some creative marketing ideas we have heard other owners successfully implement:
• Mailers/postcards to local tenants in your area, in your building type (office, Industrial, etc). Real estate brokers sometimes do this; list is typically 500 - 1000 names.
• Internet marketing. It's been estimated that 75-85% of all buyers now start their search on the internet.
• Professionally designed exterior signs. This is a way to build credibility with potential buyers.
• Professionally designed feature sheet. Also a way to build credibility and highlight the key features and information they need to be able to qualify a building for their use.
• Classified ads in local paper. You can take it a step further and advertise in trade journals especially if you have a "special use" building - restaurants, medical facility, etc.
• Referrals - Informing the professionals you hire and work with can be effective way to get the word out. Accountants, lawyers, etc. typically know of other businesses that need space.
• Teaming up with industry professionals (title companies, finance companies etc.) that can help with the various details will assure you of the best possible chances of successfully closing the sale of your facility. It's their business to know the market and know how to get it done.
Building not Salable, from the Beginning
Many owners fail to recognize issues with their buildings that may hinder or otherwise make it impossible to sell and or to finance the property.
Environmental issues can dramatically complicate a sale and may eliminate the possibility of conventional financing. Although there continues to be changes in legislation, governmental financial support, and clean up techniques, the costs and time frame of selling properties with environmental issues is significant.
Structural and or building condition is another issue. Roofs are a typical example. The costs of repairing or replacing roofs can jeopardize the financial ratios and cash needed to close. Often lenders will not release funds until repairs are completed as well. Determining who will pay for the costs is often a sticking point. Perhaps neither the seller or the buyer has the additional cash.
Structural issues can be a more serious problem and often completely eliminate the possibility of conventional financing.
Title issues are another problem and can make financing all but impossible.
Building owners can be prepared to deal with these issues by resolving them before putting the property on the market or by having adequate information (For example, repair estimates, phase one completed) on hand before attempting to sell the property and adjusting the sale price accordingly.
Commercial Finance Advisors offers a (free) co-marketing programs with building owners. For example, we promote properties online, produce flyers and send out mailers to local business's, etc. More information can be found at http://www.cfa-commercial.com
Rauth is President of Commercial Finance Advisors, Inc out of Bloomfield Hills, MI. He specializes in Commercial Real Estate Loans between $100,000 - $5,000,000. Offers unique loan programs such as Commercial 30 Year Fixed and 90% non SBA, financing. He can be reached at 248 885-8797. SBA 7a Loan or Commercial real estate loans.
cfa-commercial.com/commercial-loan-rates.html - Commercial Loan Rates
Article Source: http://EzineArticles.com/?expert=Jeff_Rauth
Below are a few of the common mistakes we see owners make.
Over Pricing Property
Over pricing the property is a huge deterrent and major common mistake that sellers make. Most buyers that feel a property is over priced quickly move on. Serious buyers normally inspect many properties and learn market values. Sellers often think that if a buyer is interested, they will just submit a lower offer; that idea rarely works.
Many sellers are simply unrealistic and fail to do their homework on value. Getting "comparable recent sales" information is needed. Understanding the income approach to value is also critical. Hiring an appraiser is the most reliable and accepted way to determine market value. Information on other buildings sold in your city can be found at the assessing department as well.
This is a painful point for many sellers if they have put a lot of money into a property. Especially for owner occupants (Business that own and operate out of the building). The hard fact is that it is very possible to over improve a property.
We see owners try to sell on their own for many months, carry the costs of ownership, give up, then list with a broker - only then to lower the asking price.
Lack of Knowledge on Handling Paperwork.
Selling a property, especially one with issues (environmental concerns, title issues, zoning infringements, etc.) can be complicated. The paperwork can be intimidating and needs to be done correctly. Not knowing how to handle the paperwork will quickly kill any potential deals.
The buyer needs confidence that they can successfully close, without violating any laws or creating long term legal issues. Not teaming up with professionals to help with the details can be a mistake.
Putting the Property Under Contract without Pre-Screening (Pre-Approving) the Buyer First.
We have seen much wasted time and effort on buyers that could never qualify for a loan in the first place. It is a needless mistake.
Sellers are anxious that they have an offer and want to move forward. They put their property under contract with the buyer, taking the building off the market (perhaps missing a legitimate buyer) and incur the carrying costs while they wait (often for several months) for the buyer to perform its due diligence and obtain the needed financing. Only later to learn that the buyer could never have been qualified in the first place.
Besides the frustration of this scenario there are legal issues (risks) and costs of putting your property under contract as well. Although there will always be risk of losing buyers (for many reasons), you can avoid this one by requesting that your buyers books are reviewed and receiving "pre-approval" letters from finance companies.
Not Being Accessible
Pretty simple, buyers are demanding, forgetful and busy. If they try to schedule an appointment to inspect your property and you can not accommodate their schedule, or return their calls, they'll give up and move on to the next facility.
Property not Presentable
Common sense stuff here as well but we see many owners fail to clean the facility adequately and or not having basic components of the building functioning (Roll up doors, broken windows, HVAC units, alarm systems, etc.).
Unrealistic about Marketing
Simply having a sign on the front of the building is not enough. Perhaps one of the neighboring businesses will be interested, but counting on that alone will probably be a mistake - resulting in increased marketing time and thus increasing your carrying costs. The idea is to maximize your buildings exposure to get it in front of as many buyers as possible.
Listed are some creative marketing ideas we have heard other owners successfully implement:
• Mailers/postcards to local tenants in your area, in your building type (office, Industrial, etc). Real estate brokers sometimes do this; list is typically 500 - 1000 names.
• Internet marketing. It's been estimated that 75-85% of all buyers now start their search on the internet.
• Professionally designed exterior signs. This is a way to build credibility with potential buyers.
• Professionally designed feature sheet. Also a way to build credibility and highlight the key features and information they need to be able to qualify a building for their use.
• Classified ads in local paper. You can take it a step further and advertise in trade journals especially if you have a "special use" building - restaurants, medical facility, etc.
• Referrals - Informing the professionals you hire and work with can be effective way to get the word out. Accountants, lawyers, etc. typically know of other businesses that need space.
• Teaming up with industry professionals (title companies, finance companies etc.) that can help with the various details will assure you of the best possible chances of successfully closing the sale of your facility. It's their business to know the market and know how to get it done.
Building not Salable, from the Beginning
Many owners fail to recognize issues with their buildings that may hinder or otherwise make it impossible to sell and or to finance the property.
Environmental issues can dramatically complicate a sale and may eliminate the possibility of conventional financing. Although there continues to be changes in legislation, governmental financial support, and clean up techniques, the costs and time frame of selling properties with environmental issues is significant.
Structural and or building condition is another issue. Roofs are a typical example. The costs of repairing or replacing roofs can jeopardize the financial ratios and cash needed to close. Often lenders will not release funds until repairs are completed as well. Determining who will pay for the costs is often a sticking point. Perhaps neither the seller or the buyer has the additional cash.
Structural issues can be a more serious problem and often completely eliminate the possibility of conventional financing.
Title issues are another problem and can make financing all but impossible.
Building owners can be prepared to deal with these issues by resolving them before putting the property on the market or by having adequate information (For example, repair estimates, phase one completed) on hand before attempting to sell the property and adjusting the sale price accordingly.
Commercial Finance Advisors offers a (free) co-marketing programs with building owners. For example, we promote properties online, produce flyers and send out mailers to local business's, etc. More information can be found at http://www.cfa-commercial.com
Rauth is President of Commercial Finance Advisors, Inc out of Bloomfield Hills, MI. He specializes in Commercial Real Estate Loans between $100,000 - $5,000,000. Offers unique loan programs such as Commercial 30 Year Fixed and 90% non SBA, financing. He can be reached at 248 885-8797. SBA 7a Loan or Commercial real estate loans.
cfa-commercial.com/commercial-loan-rates.html - Commercial Loan Rates
Article Source: http://EzineArticles.com/?expert=Jeff_Rauth
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