Should I try to sell my home by owner?

I understand a Seller electing to sell by owner to save the agents commission. But there are a few things that you should know. Number 1: There are certain California Real Estate laws that you need to follow, and certain required forms that need to be delivered to the buyer. It does not matter if you sell on your own, you are still required to comply with these laws. Number 2: Often times an agent can get you more money, even with paying the commission. Most of the time as the owner you price your home higher than market value and consequently your home is in competition with nicer homes. Most agents will take the listing at market value. The agent gets the seller more money because of the simple fact, the seller would be hard pressed to sell his home for more than market value. Number 3: The sophisticated buyer will automatically take 6% off the top of your price, even if you are at market value. You still end up taking 6% off regardless of your asking price.

Should I list my home with the agent who has the most listings?

Not necessarily. You see agents who carry 30 to 50 listing or more in this business are known as numbers agents. Their strategy is to list a large number of homes, no matter what the listing price, in an effort to swing the odds in their favor. The agent figures a certain percentage will sell. That’s great for the agent, But what about the seller? What happens to 75% of the agents listings that don’t sell? Those sellers typically get discouraged and re-list with another Broker after wasting 6 months with a numbers agent. I feel that 7 to 15 Residential listing is a comfortable level that assures all our clients will receive the same maximum level of attention & service.

An agent told me my home was worth much more than 2 other agents suggested. How can this be?

It is a commom practice of some unscrupulus agents to quote a higher selling price for your home in the hopes of taking the listing away from another agent. The strategy is to say anything to get your listing, the agent will then either work on you to reduce your price or show your home to other buyers in an effort to prove to that buyer what a good deal the other home is. You should never list your home with an agent based soley on that agents price recomendation. Often times Sellers who listed with these agents solely because of price stay on the market longer and end up selling for less money than if they would have listed at market value to begin with. Pricing at market value will save thousands of dollars in the long run.

Does the real estate agent set the price for my home?

Agents don’t set the price for your home. It is based on many factors including an assessment of your home and others, and also the current state of the market. Most agents are careful to suggest a range rather than a dollar amount. And it’s then up to you to accept or reject their recommendation, which is usually based on a rigorous review of comparable homes similar to your that have sold in recent months.

Do I need to set the right price now, can't I lower it later?

Sure you can. In the meantime, you have blown your chance of selling it within a reasonable period of time to buyers who would have been interested if your initial price had been realistic. Pricing too high is the surest technique for leaving your house dead in the water for months or even years. In addition, in down markets, when you finally correct your price you will probably end up selling lower then if you would have priced it realistically in the beginning.

Will I save the Brokers fee by selling on my own?

Yes.. and No! Most buyers who deal directly with the owner, do so to avoid paying the full price. Knowing you are not represented by a Realtor, they make low offers and buy at bargain prices. Since you are not paying a Brokers fee, they feel the savings should be passed onto them in the form of a reduced price. Even if you already reduced your price, the buyer will most always minus the Brokers fee from their offer. Plus you still need to comply with California law even if you sell your home by owner.

What is market value?

The meaning of market value confuses many people. As consumers most people shop at retail stores and pay the price printed on the price tag. A sweater in fall season would have a higher market value than that same sweater in spring. Market value is simply the price at which a particular house, in it’s current condition, will sell for within a reasonable amount of time. The only real measure of market value is what price a particular house sells. Period. However, unless you have a crystal ball, you might think you cannot predict how much someone will pay for a house in the future. Not true. You can learn to come very close to predicting the true market value of any house even without a crystal ball. Real Estate appraisers do it every day. Even so, an appraisal is only an opinion, an educated guess. In my years of Foothill area Real Estate I have become an expert in the field of determining market value for homes. The right starting price for your home is the key to selling at top dollar.

Will the tax bill signed on 8/5/97 impact the real estate industry?

Yes! The bill makes significant changes that will benefit real estate including capital gains tax exclusions on the sale of a principal residence, a reduction in overall capital gains rates, penalty-free withdrawals from existing and new IRAs or the purchase of a home by a first time buyer, increased deductions for health insurance premiums for the self employed, clarifications of the home office deduction requirements and reduced estate taxes.

If I sell my home will I be impacted by the bill?

The new tax bill grants married couples up to a $500,000 capital gains tax exclusion for the sale of a principle residence where the owner has resided two of the last five years. Singles enjoy a $250,000 exclusion. Any profits in excess of the caps will be taxed at the new lower capital gains tax rate. Best of all, this principle residence exclusion can be reused over and over again.

Can I still rollover the proceeds from a home sale if I purchase a home of greater or equal value?

No. The rollover provision was repealed in favor of the exclusion.

What if I am 55 and already used my one-time exclusion of $125,000. Can I take advantage of the new law.?

Yes. Although the $125,000 exclusion for individuals over the age of 55 has been repealed, the new law allows any couple, regardless of age, to exclude from taxes up to $500,000 in capital or $250,000 for singles every Two years for an unlimited number of transactions involving their principle residence.

How does the new tax law for homes that close after 1/1/2003 effect me?

For Your Information

2003 TAX LAW CHANGES:

In addition to nonresident individuals and non-individuals, withholding is now required when resident individuals sell California real property and the escrow closes on or after January 1, 2003. 

This new tax law may require that you withhold a certain portion of your proceeds at close of escrow.


Please consult with a certified tax account to determine how any new tax laws may affect the sale of your property. 

CONTACTING THE FRANCHIS TAX BOARD TO ORDER FORMS

Internet: www.ftb.ca.gov/geninfo/wscs/forms.html

Phone: 800-338-0505

Mail: Tax Form Request Unit
Franchise Tax Board
PO Box 307
Rancho Cordova CA 95741-0307

CONTACT THE FRANCHISE TAX BOARD WITH REAL ESTATE WITHHOLDING QUESTIONS

Phone: 888-792-4900 or 916-845-4900

Through Whom should I Sell my home?

That’s easy. Without a doubt Stephanie Baptista is the Realtor of choice. Why select another agent when you can get better service for the same price with Stephanie. I have been your dedicated RE/MAX Realtor in the Foothills for over 17 years, and I have helped many families BUY and SELL. 

I can help you too! 

Call me at (530)888-8468 or (530)367-3034