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.
- 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! If
you would like a FREE consultation call our office.