fsbo ppt.fixed

For Sale By Owner

program design

Anthony T. Marcino

www.amarcino.kw.com

[email protected]

614-330-2520

http://www.amarcino.kw.com/

mailto:[email protected]

Tonights Agenda

• Who is Anthony Marcino?

• Welcome and Information Exchange

• Marketing, Advertising, Sales

• BUYERS…how to qualify them

• FSBO vs. Brokers / Agents: Research

• FSBO Referral Program

Who is Anthony Marcino?

• Born and raised in Steubenville, Ohio

• Bachelors Mathematics and Masters Education at

Franciscan University of Steubenville, Doctoral

Research in Progress.

• Ohio Army National Guard 1992-2002

• Owned and Operated Mortgage/Real Estate

Investment Co. 1996-2008

• Taught Algebra, Geometry, Calc., Trig. 7 yrs

• Principal for 3 yrs

• Realestate Agent @ kw KELLER WILLIAMS


Bought and Sold over 100 residential Homes in FRANKLIN county ALONE

Welcome to FSBO Program

• Seminar Information Card


• AVG. = $3.03

• 323% Increase


• 88.1 to 89.3 Million

• Head of Cattle

• 1.4% Increase

An article I found

from Reynoldsburg

http://www.farmanddairy.com/news/cattle-numbers-lowest-since-1950s/47330.html

Marketing, Advertising, Sales

Marketing, Advertising, Sales

Effort

Time

BUYERS

• Working with an Agent?

• Are you Cash Buyer?

– Cash: Ask for an earnest deposit

upon acceptance of the offer

– How soon do you wanna Close?

• Finance Buyer?

– Conventional, FHA, VA, other

– PreQualified vs. PreApproval

BUYERS

• Finance Buyer?

• What is Prequalified vs. Preapproved?

• Find out there DTI ratios– Conventional 28/36

– FHA 31/43

– VA -/41

– USDA Guaranteed/Direct 29/41

• Find out there Down Payment– Less than 10% changes rations

– Less Than 20% adds PMI on conventional loans

BUYERS

• Ready to Contract

• Timeline and Dates

FSBO vs. Brokers / Agents: Research

• The National association of Realtors (NAR)

shows that the median price by FSBO’s is

27% lower than using a broker. (National

Association of Realtors 2002)

• The NAR also show that 44% of the

transactions by FSBO’s were completed

with buyers that the sellers previously knew.


• Luersen, McKinney, Huang, Foley (2014) explains that this

transaction is probably the apex investment the general

public makes in their lifetime.

• “In a perfect world, where money is no object, it would be

definitely in the consumer’s best interest to hire both a real

estate broker / agent and an attorney to help guide,

protect, and generally look after his (her) best interest in a

real estate transaction. In many states the consumers are

legally required to hire both.” (P.7)

• They extend and explain that the buying and selling

process is full of variables that propose challenges and

decisions that the parties involved encounter.


• Luersen, McKinney, Huang, Foley (2014) continued….

• Buyers are deciding:

– what the buyer wants,

– knowing what he can afford,

– making an offer (when the time comes),

– securing finances and last but not least,

– closing the deal

– the down payment,

– qualifying for a loan and his/her comfort level with the numbers.

– need to think about preparing a contract, handling negotiations,

– setting up inspections, and option periods.

– interest rates, points, and total lender fees, term of the loan, andpenalties for early payment.

– appraisal since most lenders require it to verify that the home is infact worth the cost of the loan. Physical surveys, required repairsand insurance are also among the list. (p.2)



• Sellers are deciding:

– NOT ONLY faced with potential buyers muddling through the

previous decision making process

– trying to find a new place to live.

– setting a price,

– marketing the property

– considering the offers.

– If listed too high, he/she may not be able to find a buyer. This could

be the step that makes or breaks the entire selling process.

– At this point most sellers resort to hiring an appraiser to estimate

and report the value of their property. It is important to note that

an appraiser’s estimate of value is only accurate on the day it is

reported. (p.3)



– The authors explain that searching for these details on the internet canlead to incorrect data.

– staging “…would be smart to reduce clutter and remove personalitems such as pictures. Potential buyers would like to walk into a houseand visualize where furniture would be placed, for example.” (p.3)

– They show that one of the best pros to hiring a Real Estate agent isthat they work Pro Bono. “Unlike other services which are paid for bythe hour or a flat fee when the work is completed, most real estatebroker / agents are paid by a commission at the end of thetransaction.” (p.6)

– An attorney’s specialization is real estate law and his or her fluency inlegal language. A broker / agents’ specialization is in the sale, purchase,and leasing of real estate. Based on the research gathered, the authorscan conclude that the broker / agent is the most advantageous choice.(p.7)


• Pyhrr, Seiler, and Wofford (2011) define and discussthe origin, past and future agenda for the real estatethink tank the American Real Estate Society(ARES).

• “We have gone from a print world to an Internet-based world where digital copy and instantaneousaccess to research is an expectation.” (p. 45)

• “…it is hard to see exactly what the next 10 yearswill hold for ARES given the fast pace of technology,but there is one result that we can predict withcertainty - we will depend much more heavily on ourARES website and related technologies.” (p.53)


• Bernhiem and Meer (2007) found that the use of a broker and their

bundle of services, results in a more timely completed transaction.

– Provide promotional services, help prepare a house for sales,

circulate flyers, place advertisements, hold open houses, and

recommend the house to individual buyers.

– Second, they often assist with negotiations.

– Third, they screen prospective buyers, facilitating and potentially

accelerating the process of matching buyers and sellers

– Fourth, they provide access to the (MLS),

which lists all homes available for sale.

– Fifth, they provide market information and recommendations

pertaining to the appropriate asking price.

– Sixth, they often assist with paperwork and legal documentation.

(p. 1)


• Crowston and Wigand (1999) explore and extend the timelychange agent of Technology and its affect on Real Estatemarkets.

• They explain that if the value and service provided by real estateagents is information based, then they are competing directlywith the technology movement.

• However, the interpretation of the information and datagathered becomes the focus for an effective FSBO transaction.

• They explain that the electronic phenomena offers exchange ofvalue, suffice information, and diminishing costs of transactions;furthermore, challenging the value offered by real estateprofessionals.

• “with these unknowns and more change looming,unquestionably the real estate agent and brokerage of the futuremust become flexible, responsive and information technology-savy” (p.12)


• Goodwin and Stetelman (2013) find Real Estate brokers are

“themselves falling behind the technology curve and are

struggling to quickly incorporate social networking and

smartphone technologies into their marketing plans.” (p.1)

• They find that the marketing methods have evolved to include:

multiple listing services (MLS), internet searches, new mobile

technologies, blogs, social networking, smartphones, tablet

computers, and global positioning systems (GPS).

• Online sources of information are especially useful to younger

buyers, higher income buyers, and buyers with children because

they are more comfortable with technology and appreciate the

convenience and lowered opportunity cost associated with an

online home search


• Do you know what a 1031 exchange is?

• I’m not an accountant/attorney

• I’m not giving advice

• This is research Defining 1031 exchange from:

• Grekin (2006)

References

FSBO Referral Program

program design

Anthony T. Marcino

www.amarcino.kw.com

[email protected]

614-330-2520

http://www.amarcino.kw.com/

mailto:[email protected]

Q and A

fsbo ppt.fixed

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