Real Estate Investing Tips
1.The original prospect of increasing the profit on the sale of your property by eliminating the use of a real estate professional is not a very attractive alternative. There are so many activities and requirements that must be completed, a FSBO (For Sale By Owner) course of action is usually a financial and emotional disaster. Retaining an experienced real estate broker to manage all of these items normally results in higher selling prices and higher profits to you.
2. How will you maintain control of your buyer and their search for financing? So you found a qualified buyer, you hope. How will you help control your buyers financing and other activities? You have two basic choices: 1) Stay out of it and just let them do whatever is necessary to get their financing and get to the closing in a timely fashion. 2) Attempt to exercise control by helping and closely monitoring their financing and closing activities. Once again, you may encounter severe resistance from your buyer, who often considers this an unwanted intrusion.
3.Who will negotiate the final selling price for your property? Are you comfortable, experienced, and knowledgeable enough to effectively negotiate an advantageous final price for your property? This can be a very difficult and possibly costly (to you) requirement of the sale.
4.You need to locate a buyer. After you tell your family, your friends, all of your co-workers, your bowling league, and everyone else you know, historical data indicates you still will not have found a buyer. You will need to spend money for advertising to let the buyer market know your property is for sale. Regardless of where your property is located (city, suburbs, rural, waterfront, etc.), advertising is expensive. Even just reasonably sized ads in the local newspaper, which is probably not sufficient, will cost you a great deal of money.
5.We all want to make as much money as we can when we sell our home. Whether the property is the home we have enjoyed for years with our families, or an investment property which has provided us both income and a tax shelter, we hope to maximize the profit we generate on its sale. That is both natural and admirable. The largest expense involved in selling a property is normally the fee paid to the real estate professional for arranging and orchestrating the sale. There is a strong temptation to eliminate this cost and manage the sale yourself. However, history proves this option proves to be more expensive for the seller in most cases. Remember, it is impossible to sell a property yourself without incurring significant expenses.