For Sale by Owner (FSBO) is a homeowner trying to sell their home without the assistance of a REALTOR®. Can you do this? Of course it's possible - sometimes people actually get their home sold! However it is not typical. Statistics show about 80% of FSBO's end up listing their homes with a Professional REALTOR®.
Deanna and I are REALTORS® in Beautiful Summit County Colorado a resort community. Home prices here are much higher than the national average. You would think with some homes in our area selling in the millions of dollars people would use a REALTOR® to facilitate the transaction. Most do. However due to our market moving well we are seeing a small but steady trend of FSBO.
We recently had a transaction where our buyer went under contract on a FSBO home. In Colorado it is law that we provide all parties with a brokerage disclosure. This is simply a definition of who is who and what they mean to the parties. We struggled to get the FSBO to read and sign it. The FSBO thought we were trying to trick them into signing a contract. It clearly states at the top "This is not a contract". During the inspection the inspector found a significant leak in one of the bathroom showers. After working with both the Buyer and the FSBO seller it became apparent the seller really did not understand the law or the process. The FSBO asked on several occasions, "speak to me before you talk to the buyer" If he would have had took a moment to read and understand our responsibility is to our client. We recommended on several occasions he find a REALTOR® to help him.
While we were waiting for an estimate on the cost to repair the damage of the shower from a licensed contractor the FSBO called and said they had good news. The FSBO had decided to tear apart the shower stall the night before on their own, and proceeded to explain the problem was not as bad as we thought. They said they could fix the problem and re-tile the shower stall themselves. Now had they had a REALTOR® or asked they would have known it is going to be hard to get the home to meet appraisal with a torn apart bathroom. The appraisal was in a couple of days. It also would have placed great liability on the FSBO buy doing the repair themselves.
Deanna and I had to rush to save the transaction. It was a full price offer to the FSBO and nearly cost them the deal. It ended up costing them more money and time than it would have had they let us help them.
Now I know not every transaction is like this. But it is very common for older existing homes to have some problems found during inspection that you might not even be aware of. In my experience most REALTORS are good people here to help. A great REALTOR® can be an incredible resource to guide you through what might seem to be an easy transaction. With today's laws and the amounts you are dealing with a REALTOR® just might save you money if you let them.
Here are a few tips why:
1. I do not have the time to make appointments during the day or during normal business hours.
2. How do I know if these potential buyers can qualify for my home?
3. I am not aware of the legal documentation that should accompany a contract.
4. How do you pick a Title Company, and who is suppose to pay their fees?
5. What if the Buyer backs out of the contract?
6. Can I sell my home for market price without using a REALTOR®?
7. What coverage do I have if the Buyer sues me a year after closing?
8. Is it worth having a home inspection before putting the house on the market?
9. Who does the home warranty really protect?
10. Will I really be saving the real estate commission if I try to sell myself?
These are just some of what a homeowner needs to ask themselves before embarking on this endeavor without a professional. What some homeowners don't realize is that most REALTORS® do care. This is our livelihood. We want to sell your home for the highest possible price. Our goal is to have a smooth transaction, and you are happy with the outcome so the next time you buy or sell, you think of us.
Still, anyone can put a sign in the yard and try to sell their home, and some may actually get it sold in a reasonable amount of time. But as with any profession, if you decide to take on the role yourself, you are opening yourself up to potential risks. Licensed REALTORS® are just as such, a licensed professional who is capable of guiding you thru the process and assessing the transaction with the least amount of risk and in the least amount of time possible and at the highest possible price. We ensure that the buyers are qualified to purchase the home and walk you thru the closing process step by step.
There is always a Realtor® out there that can help in any situation. Don't hesitate to pick up the phone and call one for help in getting your home sold that's what we do!
Jason & Deanna Long are local Summit County Real Estate brokers, and focus on second and vacation home properties in and around the Breckenridge CO area.
Visit www.Ski-Homes-Summit.Com filled with Summit County CO area information, listings, search the MLS® for resort homes and properties in Summit County Colorado!
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