Is your home For Sale by Owner?

Actually, every house (land or commercial property) is for sale by the owner. Only the owner can sell the property and transfer ownership to someone else. Real estate agents market property, but only the owner can sell it.

As the seller of the property, are you getting as much exposure to the real estate market as you can get? Merely planting a "For Sale by Owner" sign in the yard, or running an ad in the newspaper, won't put your property in front of potentially millions of people. The only way to do that is internet advertisng. And the beauty of internet advertising is that it's free. You can pay for advertising if you want to, but you can get worldwide advertisng for free.

Once your property for sale goes on the internet, it can be seen by anyone anywhere in the world with a computer. It may sound farfetched, but it's true that if someone in China planned to come to Americus, Georgia, and looked for homes for sale on the internet, that person could find your home.

Let's say you do not wish to list your home with a real estate agent, but you want to advertise it far and wide, free of charge, with no obligation, no contract, no strings attached. Is there a way to do that?

Michael Dixon Realty has three real estate websites where local properties for sale can be advertised free of charge. Over a month's time, the three websites are visited by hundreds of people looking at real estate on the internet. The exposure of the properties on Michael's websites is multiplied many times over by the process of syndication. That means that properties on Michael's websites are picked up by numerous real estate search sites that receive thousands of visits. To mention just two: Yahoo and Trulia.

What's the catch? There isn't one. I like to add properties to my websites to make them more interesting to people who are looking. Since the websites are paid for, merely having more properties on them costs me nothing; therefore, I don't need to charge anything. I invest some time to put your property for sale on my websites, but in return your property makes my sites more appealing to people.

This is but one of four distinct benefits Michael Dixon offers buyers and sellers of real estate that no other broker offers. To learn more, call me at 229-924-3089.

What you don't know could cost you money.

For example, commissions, or broker's fees. I don't tell you what I charge, you tell me what you'll pay. Let's see if we can get together, and what you'll get for your money. You can pay either a percentage of the selling price, or a flat fee. The point is, commissions are negotiable just like anything else.

You may want full service; that is, you turn the selling of your property entirely over to your agent, who takes care of everything the law allows, and you basically just get a check for your proceeds at closing. On the other hand, you as seller may wish to be more engaged in the process, and may prefer to share duties with the agent. In that case, you and the agent might agree on a reduced fee.

Michael Dixon Realty has always offered choices to sellers, choices that other companies may not even mention.

Did you know that if Michael Dixon lists your property and is successful in bringing the buyer to the table, you will get a break on the commission? In other words, if the buyer comes through Michael and not another company, then Michael does not have to split the commission 50-50 with the other broker. In that case, Michael can afford to work for a 4 percent commission, for example, instead of 6 percent. You get a one-third discount. Michael is the only broker in the Americus area, or probably anywhere around, who voluntarily gives you a break on your cost to sell. You walk away with a little more money in your pocket, and Michael is happy with what he got as well.

To put it another way, the last time you sold real estate and paid the typical 6 percent commission, even when your broker did not have to split it with another company, your commission with Michael would have been 4 percent if no other company was involved.

On a different but related subject: Who sells your house, or your land, or your commercial property? Is it the real estate broker or agent? No. They market your property, but only you can sell it. The broker and agent advertise the property, promote it to prospective buyers, and try to get offers on it, but only you can sell it. That's your decision. The broker and agent try to help you find a buyer, but only you can say yes to an offer. You can decide not to sell your property by never accepting an offer. It's your choice.

A word to buyers: I try to work with buyers who have been preapproved for a mortgage loan. Preapproval is based on meeting certain conditions of the lender; it's a positive step in the right direction. If you're interested in buying a house, you should talk to a mortgage lender before you talk to a real estate agent. Give your lender the information needed to be preapproved up to an amount for a loan. Get a preapproval letter from your lender, and share this with your real estate agent. Your preapproval letter tells a seller that if you are financially able to buy his or her property. Many sellers won't accept an offer from you if you're not preapproved. They don't want to tie up their property in a contract with someone who may not be able to get financing. It just makes sense.

If you are a buyer working through me as your agent, and you buy a property for $85,000 or more, I will give you a home warranty. This warranty will cover the repair or replacement of major parts of your house if they break down during your first year of ownership. You will have to pay a service charge, but the cost of the repair or replacement will be paid by the warranty company. If you prefer, I'll give you a Lowe's gift card valued at $400.00. Your choice. It's my way of saying thanks for your business. I'm the only broker anywhere around who does this, by the way.

All real estate companies are not the same. Shop around when you're ready to list your property or to buy.

How much would you pay me to have an office?

Would you pay me as much as you pay other real estate brokers if I had an office?

If I rented an office, would you help pay the rent? If I owned the office, would you help me pay the mortgage? The utilities? The property tax? The insurance? The maintenance? The yard work? The secretary? Would you pay to sit in my chairs, or my sofa? Would you help pay for my conference table?

What if, on the other hand, I had none of the above expenses, but could provide you with the level of service you want at practically no cost to myself? What if we sat at my dining table, or yours, to go over documents? What if my low operating costs enabled me to adjust my fees accordingly?

What if I put your listed property on my three real estate search sites on the Internet? What if I created a web page just for your listing on the Internet with links to it on my websites -- websites that get hundreds of visits every month?

What if I syndicated your listed property to more than 40 real estate search sites on the Internet -- many more than other brokers provide?

If I provided all of the above amenities and services without the expense of an office, would you still want me to have one? What if I could do it all at a lower cost -- to me and to you? Would you be interested?

Call me at 229-924-3089, or email me at michael@michaeldixonrealty.com. Thank you.

What? Your real estate agent isn't doing this for you?

Real estate Seller, when your agent, himself or herself, procures the buyer for your property, and there's no second company taking half of the sales commission, will your agent reduce the commission to 4 percent? No?

Is your agent providing a one-year home warranty at his or her own expense as an incentive to a buyer to buy your home? No?

Real estate Buyer, is your agent giving you, as a thank-you gift, a home warranty covering the major systems in your home for your first year of ownership? So if the roof starts leaking or the air conditioner conks out, you can get it fixed by paying a one-time service fee, usually $100 or less? No?

Did your agent get a letter of pre-approval from your mortgage lender that will give your offer VIP treatment with a seller, and give you an advantage over buyers without a pre-approval letter? No?

If you're a real estate buyer or seller, and you answered no to any of these questions, you should talk to Michael Dixon. Michael provides full service, just like the "big" guys, but he offers buyer and seller incentives they don't.

Michael has provided personal and professional service to real estate buyers and sellers in Americus, Sumter County, Ellaville, Schley County, and all around for more than 15 years. Talk to him about a buying or selling plan tailored for you. 229-924-3089.

Are you a discount broker?

Q: Are you a discount broker?

A: No. "Discount broker" is a misnomer. For there to be "discount brokers" there would have to be a set brokerage fee, or commission, throughout the real estate brokerage business. But there is no set fee; therefore, there's no fee to "discount."

If there were a universal fee, such as 6 percent, brokers would be in violation of fair trade practice. It would be essentially the same thing as price fixing. That would be unlawful. Brokergage fees, usually called commissions, are negotiable. They are not set in stone.

A typical fee is 6 percent for most properties, but that's not a requirement for doing business. Why 6 percent? Brokers know that they often must share a commission 50-50 with a second company. Within each company the broker deducts a small percentage of his share of the commission to cover operating costs. What's left is again split between the broker and the agent who listed or sold the property. By the time the commission is sliced and diced, there's not much left to compensate the two brokers and two agents.

In cases where the broker gets to keep the entire 6 percent commission, he or she still must pay operating costs and share the commission with an agent (unless the broker listed and sold the property himself/herself). If the brokerage is a franchise, the broker's operating costs include a franchise fee. In addition, he or she has all the expenses of a business operation. Somebody has to pay for it all.

On very large sales the commission may be less than 6 percent. Also, when agents work with building contractors to list and sell new houses, the commission usually is reduced. There are other reasons why sellers and real estate agents may agree to less than 6 percent commissions.

The important point is: Real estate commissions are negotiable. Since we don't begin with a set commission we don't "discount" the commission. However, we may agree on a lower commission when, for example, the seller will be performing some of the usual services of a real estate agent. By agreement, the agent will provide less than full service, and will be paid a lower commission.

Michael Dixon Realty always negotiates commissions and offers a menu of services ranging from full service to partial. You're the customer. You know what you want.

Why do real estate agents get paid so much?

Q: Is anything selling in Americus and Sumter County?

A: Yes. Although results are disappointing in some cases, some properties are being sold. Since January 1 this year, REALTOR members of the Americus Board of Realtors have listed 124 residential properties; 57 of them were sold so far. That's a little less than half being sold.

Of 28 land listings, 5 have been sold. Of 8 commercial listings, 6 have been sold. Percentage-wise, commercial sales have outperformed residential and land. As recently as 10 years ago, land sales in Sumter and adjoining counties comprised a hot market, thanks in part to buyers from Florida. When the housing bubble burst and the economy tanked, that market almost dried up.

Q: Why do real estate agents get paid so much for the little time they spend working?

A: Oh, boy, that's a question I love to answer. The public sees real estate agents unlocking doors so their customers can look inside houses, and may think that's about all they do. The truth is, the public only sees a small part of what agents do. Most of our work is done behind the scenes in our offices, cars and homes. We spend a lot of time putting deals together and more time keeping them from falling apart -- a constant hazard.

Agents have to balance the interests of buyers and sellers while coordinating the transaction with mortgage lenders, appraisers, surveyors, home inspectors, repairmen, pest control guys, attorneys and paralegals. That's a lot of time spent in phone calls, writing and answering emails, meeting workmen at the house to let them in, making sure the house is locked up after they leave, etc., etc.

But here's the most important point to remember: Real estate agents get paid for performing, not for their time. A good agent performs the work necessary to insure a smooth closing. When the agent sits there at the closing table, he or she should have little to say and nothing to do. The agent's work has been done in advance of the closing, and that's why we're able to have a closing. It may have taken two hours or 10. The agent performed his or her duties under the contract, and that's what an agent gets paid for.

Further thoughts: Agents spend thousands of dollars obtaining and maintaining their licenses. They spend many, many hours taking classes to stay abreast of the latest legal and technical information they must know to perform their duties. They assist buyers and sellers with one of the most important transactions they will ever engage in, the buying and selling of real estate.

Most of us think nothing of leaving a 10 or 20 percent tip for a waiter, even when the service isn't all that great, but some of us begrudge the real estate agent a "tip" of 6 percent. Bear in mind, the agent will get to keep only a part of that "tip." The agent's broker gets a share of it, and it may be split 50-50 between two companies. The companies have operating costs. After all deductions, the agent gets a small slice of the pie.

Think about this: What if the agent was also the broker, and his only "operating costs" were copy paper, ink cartridges, and a few other supplies. That broker/agent could perform the same services as the other brokers and agents but at lower "operating costs," and could offer savings to his customers. One broker/agent in Americus meets that description.

Things I can't control (as a REALTOR)

There's nothing I would rather do than sell your house -- actually, to help YOU sell it -- because until you sell it I'm working for nothing. My commission is the only pay I get no matter how much time I devote to you and your property. So, of course, like you I want to sell the house and get a check.

If it were totally up to me, we probably would have sold your house already. But it's not. There are some things I can't control, such as:

The house. Is the house inviting and attractive? When prospective buyers first drive up to your house, before they get out of their car, do they get a good impression? When they first enter your house are they eager to see more, or silently wish they had passed it by? Is it clean and neat, free of clutter, free of pet odors or food odors? Are the kitchen and bathrooms sparkling? Unless you can answer yes to these questions, your house is not ready to be shown. I have no control over your house.

The price. Is your asking price competitive? Is your house priced to sell? Please keep in mind, your house is competing with many others similar to yours in some basic ways. Buyers may look at a dozen or more houses before making an offer on one of them. No one expects you to "give it away," but if your house is not priced competitively it may not make it onto a buyer's short list. As your REALTOR I know what similar properties are selling for, and what you can reasonably expect to get for yours, but I have no control over your asking price.

The market. We are in the worst real estate market in the memory of most agents. The market is flooded with foreclosed properties, all of them competing with yours for a buyer. Some of them are selling for much less than they would in a market where supply and demand are in balance. Those days are gone for the foreseeable future, a fact we just have to get used to. But, let's say, you need to sell your house. Your real estate agent wants to help you get the best price for it (because his or her commission is based on your selling price). However, the eventual selling price is not necessarily what we WANT it to be but what the market determines it to be. I'll try to find a buyer for your house, but I have no control over the market.

In fact, neither of us controls the real estate market. You can control your house and your asking price, but not the market. Your agent is as much a victim of a down market as you are. Working together, we just have to make the best of a bad situation. Fortunately, here in the Americus and Sumter County area some property is changing ownership. The market may not be what we experienced years ago when it was brisk, but it's not dead either. At least some property that is priced to sell is selling. Property that's not priced to sell isn't selling.

When a REALTOR can bring together a motivated seller and a qualified buyer, things happen. In that case, the REALTOR has some control over the process. That's when real estate gets sold.

Finding Your Buyer

Can we take it as a given that somewhere out there in the world is the person, couple or entity that is going to buy your property? We don't know who, and we don't know where that buyer is located. Our job is to find him or her or it. How can we do this?

We will advertise your property. We will put it on numerous Internet websites that people use to search for real estate for sale. Surveys tell us that 80 percent or more of people looking for real estate begin their search on the Internet. That's where you want your property to be found.

My company, Michael Dixon Realty, places your listed property on 15-20 Internet websites. It would be hard for anyone looking for property of your type not to find it on the Internet. The best part: it's free.

If we already knew who was going to buy your property, we would contact that buyer immediately and obtain a signed offer for you. Advertising would not be necessary. Listings on the Internet would not be necessary. But because we don't know who, or where, the buyer is we must search for him or her or it. While we are searching for the buyer, the buyer is searching for your property. We may find each other right away, or it may take months. Your buyer may be located within five miles of your property, or may be 500 miles away, or even in another country.

If we accept that your buyer is out there somewhere, it's just a matter of time until we find each other. Again, if we knew the identity of your buyer, we would go straight to him (or her or it) and obtain a signed offer. That offer would be for an amount of money acceptable to you. It would be accompanied by an acceptable amount of earnest money. It would contain an acceptable closing date, and acceptable terms and conditions.

In other words, if we could avoid a long search for the buyer, and could tie up your sales contract with a pretty ribbon, the selling process would be so simple, so profitable and so much fun that you might buy another property and flip it just for the sheer pleasure of selling real estate. What joy. Alas, however, it's not like that. Finding your buyer can be a trying and exasperating experience that drags on and on until you are ready to give up in defeat.

Your REALTOR, meanwhile, is as frustrated as you are. He or she is investing lots of time and effort trying to find your buyer -- and failing week after week. Your REALTOR has a sales commission at stake, a sales commission that doesn't actually exist until he or she closes your sale. But, there will be no closing unless there's a contract, and there will be no contract unless your REALTOR locates your buyer, shows your property, gets an acceptable offer, gets a contract, and guides, prods and coaxes your transaction to a successful close. It doesn't hurt to pray as well.

It has been said, true or not, there's a buyer out there for every property. That means there's a buyer out there for your property. But who? Where? When will your buyer bubble up to the surface and become a reality? Your REALTOR is searching for your buyer. Your buyer is searching for your property. Somehow, some time, they will find each other.