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 16% 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.
