Buying or Selling a Home/Home sale

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Expert: Jim Root - 5/24/2008


Question
Jim,

Thanks for taking my question.  My wife and her brother inherited their parents home (both passed away about 1 1/2 years ago) and they are just now getting to the point of seriously trying to sell the property.  They had a couple of family friends express interest but not unexpectedly all fell through.  Now, as amazing as this is to me, her brother is insistent upon using an Autioneer to try to sell the remaining contents of the home (which to me is a waste of time given that the autioneer can't do it until mid-late July) AND the home itself!  I looked at the site the autioneer suggested viewing (autionzip.com) and homes in their area were being listed for $35k!  The FMV is at least $100k plus.  Now am I just being silly here or should they stop whining about paying out 5-7% to a good realestate agent and forget the aution garbage?  I've NEVER seen an aution that grabbed anything close to the asking value OR the FMV.  Any other suggestions?  Tks!

Answer
HARRISON--

From my perspective, auctions seem to work well when offering "High End" homes ( VERY expensive properties) OR "Low End" properties ( real BARGAINS)! This seems to me to be even more true in a "Buyer's Market," such as we have across the nation these days! People going to Auctions these days seem to be looking for  a"real steal" on an expensive home OR a "give-away" price on something that they can resell or rent!

I suspect that your Wife and Brother-in-Law will sell the home more quickly and with higher net proceeds if it is listed among other similar homes at a "reasonable" price in it's value range & through a Realtor member of the local Multiple Listing Service. It can be listed at a price that "covers" the "5 to 7%" commission--so no money lost! And it'll be offered 4-sale  NOW, not in several months!

Why don't you suggest to them that they talk to two or three local Real Estate Agents, get their input on a recommended "List Price,"(by doing a "Comparative Market Analysis") their estimates of "Marketing Time"(the time the home may take to sell), and compare this data with what the Auctioneer thinks he/she can get for the home,and how much he/she will charge for "turning" the property at an Auction in "mid-late July."

After making a comparison, a "smart" decision can be made--Listing with one of the Realtors they've "interviewed," or Auctioning? The choice is theirs, of course--but if it were me, I'd let my favorite Realtor "get it gone" for me!

GOOD LUCK!

--JIM  

Buying or Selling a Home

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Jim Root

Expertise

How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!

Experience

Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!

Organizations
Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).

Publications
Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.

Education/Credentials
Associate Degree in Real Estate Studies plus: Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years. Bachelors Degree in Mass Communications, Masters Degree in Education/Teaching

Awards and Honors
Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.

Past/Present Clients
No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!

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