EVEN THE FOUNDER OF ForSaleByOwner.com SELLS USING A BROKER!!

Former FSBO CEO sells home using a Realtor (reported in the AGBeat website: http://agentgenius.com/real-estate-news-events/forsalebyowner-com-founder-gives-up-on-own-listing-hires-real-estate-broker)

Founder and former CEO of ForSalebyOwner.com, Colby Sambrotto listed his 2,000 square foot New York condominium on his own through online classified ads and FSBO sites, but after six months, he opted to hire New York broker Jesse Buckler who immediately advised a price change as the listing was not attracting the right buyer.

After giving up on the FSBO route, Sambrotto’s decision to hire a broker led to attracting multiple offers, closing for $150,000 over the original asking price. The Wall Street Journal reports the listing sold for $2.15 million including a 6% commission.

Many FSBOs turn to Realtors

The news stands as an enormous validation of the real estate profession and while some may tease, it is no laughing matter and the former FSBO CEO made a good financial decision.

AGBeat columnist Herman Chan said, “If people want to take a stab at For Sale By Owner (ie FSBO), go for it. But well over 90% of FSBO’s eventually have to list with a real estate agent to get their house sold. It’s harder than it looks!”

The inability of FSBOs to sell completely on their own was the foundation of Homeowners Concept when we began in 1984. 27 years later and 23,000+ properties sold, Homeowners Concept has given home sellers a program they can successfully sell their property without a hefty commission.

5 YEAR ADJUSTABLE RATE MORTGAGES AT 3%!

Many buyers are not aware of the extremely low Adjustable Rate Mortgages (ARM) available, specifically the 5 and 7 year. As of this writing one can lock in for a 7 year ARM for 3.4% rate. The 5 year is even better at 3%. These are conventional rates although FHA which offers lower downpayment and more flexible underwriting criteria is also offering low ARM rates. The rates are quoted by Netcentral Mortgage (netcentralmorgage.com/414-258-7833) which is located in the same building as our central office in Wauwatosa.

In the conservative environment of Southeast Wisconsin most buyers refuse to even consider the ARMs. Yet, if one had been in an ARM for the last 25 years, they would have enjoyed tremendous savings over a fixed mortgage (and would not have to incur refinancing charges AND would have paid off the loan much sooner). As the rates adjusted lower the ARM would have adjusted lower and ARM rates are lower than 30 year rates.

Most buyers have been reluctant to purchase or refinance with an adjustable rate having this fear that rates will go up, yet if one looks at Japan the fixed mortgage rates are close to 2%. In the economic environment we are in, it is very conceivable that fixed rates can continue to move lower to the 3-4% range. Adjustments to the ARM rates at the end of 5 or 7 year anniversary would then translate into a new rate in the 2-3% range.