Many
homeowners believe that to maximize their profit on
a home sale they should sell it themselves. At first
glance, they feel selling a home is simple and why should
they pay a broker fees for something they could do themselves?
In fact, close to 25% of all the homes sold last year
were sold for sale by owner (FSBO).
However, close to half of the FSBO’s said that
they would hire a professional next time they sold.
Thirty percent said they were unhappy with the results
they achieved by choosing FSBO. Why?
Many FSBO’s told us that the time, paperwork and
everyday responsibilities involved were not worth the
amount of money they saved in commissions. For others,
the financial savings were even more disappointing.
By the time they figured the amount of fees paid to
outside consultants, inspectors, appraisers, title lawyers,
escrow and loan officers, marketing, advertising...
they would have been better off having paid the broker’s
fee which would have included many of these charges
up front.
Selling a home requires an intimate understanding of
the real estate market. If the property is priced too
high, it will sit and develop a reputation for being
a problem property. If the property is priced too low,
you will cost yourself serious money. Some FSBO’s
discovered that the lost money as a result of poor decisions
outweighed the commission.
Before you decide to sell FSBO, consider these questions
and weigh the answers of assuming the responsibility
versus employing a professional. A little time spent
investigating up front will pay off tenfold in the end.
Questions To Consider:
Do I have the time, energy, know-how, and ability to
devote a full forced effort to sell my home?
One of the keys to selling your home efficiently and
profitably is complete accessibility. Many homes have
sat on the market much longer than necessary because
the owner was unwilling or unavailable to show the property.
Realize that a certain amount of hours each day is necessary
to sell your home.
Am I prepared to deal with an onslaught of buyers who
perceive FSBO’s as targets for low balling?
One of the challenges of selling a home is screening
unqualified prospects and dealing with lowballers. It
often goes unnoticed... how much time, effort and expertise
it requires to spot these people quickly. Settling for
a lowball bid is usually worse than paying broker commissions.
Am I offering financing options to the buyer? Am I
prepared to answer questions about financing?
One of the keys to selling, whether it’s a home,
a car... anything, is to have all the necessary information
the prospective buyer needs and to offer them options.
Think about the last time you purchased something of
value, did you make a decision before you had all your
ducks in a row? By offering financing options you give
the home buyer the ability to work on their terms and
open up the possibilities of selling your home quickly
and more profitably. A professional real estate agent
will have a complete team, from lenders to title reps
for you to utilize...they’ll be at your disposal.
Do I fully understand the legal ramifications and necessary
steps required in selling a home?
Many home sales have been lost due to incomplete paperwork,
lack of inspections or not meeting your states disclosure
laws. Are you completely informed of all the steps necessary
to sell real estate? If not, a professional would be
a wise choice.
Do I have the capability of handling the legal contracts,
agreements and any disputes with buyers before or after
the offer is presented?
Ask yourself if you are well versed in legalese and
if you are prepared to handle disputes with buyers.
To avoid any disputes it is wise to put all negotiations
and agreements in writing. Many home sales have been
lost due to misinterpretation of what was negotiated.
Have I contacted the necessary professionals... title,
inspector (home and pest), attorney, and escrow company?
Are you familiar with top inspectors and escrow companies?
Don’t randomly select inspectors, attorneys, and
title reps. Like any profession there are inadequate
individuals who will slow, delay and possibly even cost
you the transaction. If these questions raise some concerns
you may want to speak with a professional.
We sincerely hope these tips and ideas are of value
to you. If there is any way we can be of service please
contact our office. We would consider it a privilege
to serve you!
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