Archive for the ‘Introduction to DIY Real Estate’ Category

Why Do-It-Yourself?

August 24, 2012 Leave a comment

It struck me recently that writing about Thread Real Estate continued existence.  In this case, it is important to convey why we do what we do, over what we do and how we do it. This post briefly describes philosophy to help you understand us, but isn’t intended to be a lecture in philosophy.

Go the extra mile

Do-It-Yourself is a bit of a misnomer. At the end of the day, an agent’s professional help is instrumental to getting a sale smoothly completed. In our experience, DIYers that we serve tend to go the extra mile in different ways,  an ingredient for success. When our help is employed, we make sure we go the extra mile. True DIYers that have gone the extra mile know when to employ help that will go the extra mile.

Good work deserves reward.

I do want to qualify what “good work” means. I’ve heard the saying “hard work brings rewards”, but to my experiences, this isn’t always true. Good work means goals were inline and met. Good work can be hard work. Hard work can’t always be good work.

Getting a reward is a result, but is typically secondary why good work is performed. Work with results is complete and purposeful. This could be a reason why DIY experiences ends up being more fulfilling, because the purpose and intent must be greater in focus. While getting or saving cold hard cash helps the cause, it never replaces the true why.

When looking for real estate advice it’s easy to see the more superficial “what’s-in-it-for-you” and “how-do-you-get-it” aspects of do-it-yourself. Looking into the “why”, the advice given comes from something greater.

What kind of programs are available for “Do-It-Yourself” real estate?

August 8, 2012 Leave a comment

Briefly introduced in my last post, there are programs for both sellers and buyers that will allow them to sell their property to a wider audience. In this post, we will look further into detail what each program provides.

The programs are follows

  1. Listing on MLS
  2. Rebate back on purchase
  3. Session based consulting

Listing on MLS

Listing on MLS is a program geared for sellers. Typically the audience is gear for For Sale by Owner (FSBO). In this program,  sellers will place their property on the appropriate MLS network so that they reach a wider audience.  The seller assumes all the legwork and scheduling of showings of their property.

Without dispute, Multiple Listing Service (MLS), is the best place to market your property. Feel free to advertise on other sites, newspaper, etc, as they are all distant seconds and thirds.

Prices range between free to a few hundred dollars. While free appears to be nice, expect overall service to be lacking and to be sold something else in addition down the line. Paying a few hundred dollars to get responsive service to make listing adjustments over the course of selling your home is well worth the value. Communications is best done over email and is favorable to the computer savvy.

Rebate back on purchase

There are lots of names for this kind of program, but the word “rebate” is a term used often to describe it and is typically for buyers. This program allows a buyer to enter an agreement with an agent where a rebate is returned is provided if a purchase of a home is completed.

This rebate is fully earned if the buyer spends the time to view properties without the assistance of an agent, predominantly through open houses. Agreements and adjustments can be made if assistance is needed, but the bulk of the work of an agent comes in when an offer and a sale needs to be managed.

Depending on the sale price and how much the buyer has participated in the search process, the rebate that comes back can be generous, but is dependent on what commission percentage is offered to the buyer’s agent.

Session based consulting

This is a harder service to come by and is an indicator of experience. If this kind of offering is provided by an agent, it’s likely the agent has experienced much. This kind of service is initiated if a question or situation can not be answered in a reasonable amount of time and some kind of appointment is needed. Expect to pay for the services up front.

An experienced and good agent will charge $150-175/hr for services rendered. Time and money spent on sessions usually turn out well worth the value, especially if it prevents large losses of money and time.

What is “Do-it-yourself” real estate?

August 8, 2012 1 comment

During and after the real estate craze in the mid 2000s, value of the traditional real estate sales model has been questioned. This questioning introduced a new type of real estate sales model where homeowners or homebuyers can get more closely involved in the transaction process and in turn, be rewarded mostly by earning or saving significant funds.

If you are reading this, quite possibly you are interested in this way.

“Do-It-Yourself” (DIY) sales has been around for a while but hasn’t been well publicized, reasons that go beyond the purpose of this blog. This blog contributes to leading the reversal of this trend.

DIY real estate services provide programs to both buyers and sellers of real estate in the form of these concepts

  1. Listing on MLS for a Flat Fee (For sellers)
  2. Rebate back when purchasing a home. (For buyers)
  3. Session based consulting work (For sellers and buyers)

These programs provide monetary incentive for sellers or buyers if there a commitment to spend the time and leg work to perform property showings and viewings. Only when a sales transaction needs to be initiated and guided, will an agent be of assistance.