5 Reasons Why You Should NOT Try to Sell Your Home By Yourself

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5 Reasons Why You Should NOT Try to Sell Your Home By Yourself

Are you thinking of selling your Schuylkill County Home FSBO -- by yourself?

Marketing a home in 2010 is NOT the same as marketing it 10 years ago. Even if you did this before, you have to do so much more than plant a sign on the yard and place a classified ad.

5. Advertising is more complicated. When is the last time you read the newspaper or searched the classifieds. Years ago you'd buy the paper to see what homes were for sale or rent. A single classified ad run several times a week might get you enough calls to sell the house. Now it's so much more complicated! Most agents and brokers don't advertise anymore in newspapers because THEY DON'T WORK and also because they are very expensive considering the lack of results.

4. Are you internet savvy? What does work is the internet. Buyer start their searches online now, months before they are ready to buy. A real estate broker will put your property on the MLS to advertise to all agents, plus many other internet sites. In our office, we put your property on 3 MLS systems covering all of Schuylkill, Lebanon/Lancaster MLS, and TREND MLS which stretches into Reading and Philadelphia. We then use Postlets and ListHub to feed out into over 38 sites via RSS feed. So you're on Trulia, Zillow, Craigslist, Homes.com, and so many more sites. Can you do that?

3. Are you ready to pre-qualify buyers who call on the phone? Before you let someone cross the threshhold, are you ready to ask them personal questions about their finances, or are you going to just open the door? How do you know a buyer really has the ability to buy? Because he says so? Really? Not in today's market. And once you agree to show your home to someone, you need to make yourself available to all buyers, at their request, when they want to see the home on their own time, not yours. Is it an inconvenient time? Sorry. Make yourself available for them.

2. What about all the paperwork? If you do go FSBO, call a lawyer. You will need someone to write up the contracts and get you to settlement. You should not just go online or to Staples to find generic documents. This is complicated and dangerous to try to do on your own. You need an attorney to help you once you find a buyer. The work is not finished. It is just starting, unfortunately. You have contracts, then inspections, the appraisal, and financing details to make it thru now.

1. Can you negotiate like a pro? Seriously. If a buyer walks in and asks "Can you go lower" or "Why are you selling" or "What is your bottom line?" How will you answer? This is not a business deal cut and dry. This is your house. Will you waffle a bit and tell them there is room to negotiate? Will you tell them that you need to be moved in 30 days because you got a new job? Will you hurt your negotiating power by giving away too many details about why you are moving and/or how much you will really take? Having an agent in the middle can take a step away from this, giving a bit of distance to you in negotiating. Perhaps if you do not want to pay an agent, you should hire that lawyer to negotiate for you. Don't try this yourself if you even think you're going to tell buyers too much personal information or cave when they say your home is overpriced or they can only afford X.

Real estate agents -- good ones -- will put YOUR Interests above theirs. They will negotiate fiercely to get you the highest and best price for your house. They will take care of all the little details you otherwise have to handle on your own. The best agents are worth every penny you will pay, in getting you a higher price for your home with less hassles.

Are you thinking of selling your Schuylkill County Home FSBO -- by yourself? Think again, please.

If you're going FSBO because you think you cannot afford one, it may just be that you cannot afford NOT to have an agent. Not all firms charge the same fees. All fees are negotiable. Interview a few agents and ask each one to explain what they do for their fees, and how their fees are structured. You just might be pleasantly surprised by what you find.

Flickr image courtesy MiK

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Erica Ramus is Broker/Owner of Ramus Realty Group in Pottsville, PA. If you're looking for a PROFESSIONAL to represent you in all of your Schuylkill County real estate needs, call 570-622-6006. Serving all of Schuylkill County ... Pottsville, Orwigsburg, Schuylkill Haven, Auburn, Pine Grove, Frackville, Minersville, Ashland, Shenandoah, Port Carbon, Palo Alto, St. Clair, Barnesville real estate. Click on the link above to search Pottsville PA homes for sale or anySchuylkill County homes for sale. We have all properties listed for sale in theSchuylkill MLS on our website -- free search! No registration is required!

We also run Schuylkill Appraisal Services, for all your appraisal needs in the area. If you need an appraisal, we are your Schuylkill County appraisal source.

And for all your commercial needs in Schuylkill County check out Schuylkill Business for your Schuylkill County commercial real estate.

Posted by Erica Ramus - SchuylkillRealEstate.com - Schuylkill County PA Real Estate on 08/05/2010 07:14 PM

Comments (72)

FSBO Tips in the Home Selling Channel

Originally posted at: Schuylkill County Real Estate: 5 Reasons Why You Should NOT Try to Sell Your Home By Yourself

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72 Comments on 5 Reasons Why You Should NOT Try to Sell Your Home By Yourself

AUG

2010

Erica, good list of reasons to us a professional.

Erica, Another good show. Hope you can get a lot of FSBO to read.

Erica

Well said and right on point.

Good luck and success.

Lou Ludwig

AUG

2010

All good reasons Erica. Especially in the market we are currently in. You really do need a professional on your side.

Some very good points, I don't think a lot of people truely realize what it takes to sell a home on your own, leave it to the pros!

It's near impossible to convince a FSBO before he or she tries to sell -- but after they've failed, they';re much more compliant!

After meeting with FSBO prospects, it's amazing that the majority had NEVER thought about the security aspect of not knowing who they were letting there home!!

Fantastic and informative post. Especially to consumers attempting FSBO. Inducing thoughts like this can really help sellers have a more objective outlook on enlisting the help of a real estate professional. Thanks!

Hi Erica~ Most unrepresented sellers have no idea what they are getting into and what it takes to get a home sold. You can't blame them for trying because we make it look so easy!

Well written and valid for any market. You see less of this now than you used to in our area.

You know I read through your reasons and almost forgot how challenging the process really is when you look at the BIG picture. There are so many things that could go wrong. As an agent you do it over and over so it becomes as easy as breathing. I guess that's the most important thing for a FSBO to remember, we sell homes day in and day out. You're paying for our experience! We prepare you for the unexpected!

I am once again reminded of the old adage that lawyers use: "Anyone who represents themselves in court has a fool for an attorney!"
Just had a FSBO go in my neighborhood for $100,000 LESS than what I got for the exact same house two months before, and my sale was the new comp.
It was not to a relative. I have no clue as to what these people were thinking... Sales price was $800K, so hiring a Realtor probably would have netted the seller more money. I guess he did not think far enough ahead to figure out that Realtors bring buyers. Oh well, his loss.

Erica, I think the little deer in the picture behind the sign knows that nobody is coming to look at the property.....not much traffic on a FSBO these days.

Ditto for those who want to buy a FSBO without the help of a professional.

I've had FSBOs tell me.....what a realtor does is so easy, I can do it myself! Go ahead and when it doesn't work out the way you'd hoped let's have coffee and talk about how easy my job is!

Thank you Erica. I think its a particularly scary time to try to FSBO especially if you really need to sell. Lets not forget REALTOR's are more likely to get an average of 13% higher sales price!

....I think I'll include this in my farming packets from here ;o)

Reason #6 Selling a home is a full time job, great post!

we have a neighbor who constantly sells cars out of his driveway. Now, he has a For Sale By Owner sign tacked to his mailbox, with nothing on it but a phone number. I can't really tell if it's for the house, or the car!

I can't count how many times we're called in to clean up a situation from a FSBO that went wrong... Most of the time, it's too late for us to help.

Excellent post - trying to sell by owner very rarely works in todays market!

Great post today! Thank you for the info....

Patricia/

Great Post. These are the kinds of blogs we need more of.

Dave Cousins
Keller Williams Realty South - Calgary
www.calgarysbesthomes.ca

All very good points. I also think when you go to sell it yourself all the discounters show up hoping to make a great deal with you because you are saving all that money on an agent.

Excellent info, Erica. (And, of course, your points apply to all FSBO sellers nationwide.)

FSBO is something that I never recommend. So many things could go wrong for both the buyer and seller. Great post.

Well said Erica! I have a client who is in contract to purchase a home that wants to FSBO her current house. She explained to me that she sold her mother's house as a FSBO years ago and it was no big deal. Rather than get huffy, I just wished her well and even made a few suggestions for things she could do to help herself along, like get it preinspected...things that, handily enough, will help me when and if she gives up ;-). Plus, I was rather dreading the prospect of dealing with the inflated price she likely wants; better to let the market beat her up a bit first!

For Many UN-savvy FSBO'S those reasons may cause pause.

But I am finding in my experience working FSBO'S they some times out Market Agents.

Today for about $400- 600.00 THEY CAN GET

LISTING ON MLS, WEBSITE WITH VIRTUAL TOUR SYNDICATED TO OVER 50 SITES INCLUDING FEATURED LISTING ON REALTOR.COM, LOCKBOX, SIGN WITH CALL CAPTURE,CMA, ACCESS TO ALL FORMS ETC

These savvy FSBO'S also have Loan Officers help them Market Home and Qualify buyers; on call.

They have a Lawyer/title combo firm in place to review contracts

They have a Pre-Appraisal and Inspection done.

YES ABOUT 30-40% HAVE ALL THIS BUT ABOUT 80-85% HAVE MLS AND INTERNET WEBSITE/TOUR IN PLACE.

WHERE FSBO'S HURT THEMSELVES IS IN SELF DECEPTIVE PRICING AND INABILITY TO NEGOTIATE PROFESSIONALLY. ALSO LACK NETWORK OF TOP EXPERIENCED AGENTS[5% of Agents]

NAR does not do many surveys during a recession but in the past 70% of clients said they would use same Agent again and number one complaint was communication.

The California association of Realtors did a NATIONAL SURVEY this year the results were:

Only 22% said they would use same Agent

Number one reason was they believed REALTOR INCOMPETENT AND THEY NEW MORE THAN THEIR AGENT!!!!!!! IN ALL CATEGORIES, FINANCING, MARKETING, MERCHANDISING, NEIGHBORHOOD KNOWLEDGE ETC.

IF FSBO'S EVER ACCEPT MARKET PRICING AND QUIT THINKING THEIR HOME IS "SPECIAL" AND LEARN NEGOTIATING MEANS BEING UNEMOTIONAL WELL.....

AS OF NOW MOST EVEN BY THE 'SAVVY' SIT ON MARKET FOR ETERNITY AND THEN WHEN DESPERATE SELL BELOW MARKET OR WHAT A REALTOR WOULD HAVE PRODUCED OR BREAKDOWN AND HIRE A BROKER.

WHO HAS IDEAS ON APPROACHING THESE SAVVY TYPES?

I FIND TRYING TO 'SCARE' THESE TYPES DOESN'T SEEM TO WORK.

PHIL

5 great reasons to use a Realtor, Erica. Now, more than ever, it's important to have someone who knows what they're doing on your side.

Nice post good info, and with what Phil (#28) added made it even better. Picking up some useful information.

Erica, I really love the picture. I've seen a few of those myself in rural TN.

Legally during the sale and after the sale there are alot of risks. Do you really have time to sell your own home? We work on selling your home all day everyday. We spend thousands of dollars on the best blog and websites to get you ultimate exposure 24/7 with the appropriate wording to gain top spots on these sites.

Thank you Erica,

May I "tweak" this to use in my mailing literature. All very good points.

nice list... i would include the "in harms way" from Jerry Bresser... there are four kinds of buyers etc.

Thanks for sharing

Erica, great info! Under pre-qual buyers, I always tell FSBOs another point. How about the safety of your family? Do you really want a stranger just knocking on the door and then being welcomed in? realtors scrren their buyers before taking them inside a client's home.

Erica, great list. I also liked how matter of factly you ask these questions. it's something one should reflect upon, before deciding to sell on his/her own or with an agent. It's not about "you as homeowner can't do it", it's possible if you have ALL your ducks in a row, as Phil pointed out in #27, yet this is a great explanation why it is wise to use an agent. Besides, one might save on commission, but loose one the overall purchase price... But most importantly - TIME.

If selling on your own, one needs to spend a lot of time to first find the team (and make sure they all are good at what they do), then orchestrate the whole thing.

Erica, this is excellent. While I agree with all five points, I also agree with Mike.

I wouldn't want someone coming into my home without the supervision of a Realtor. FSBO can be very dangerous.

Erica... but wouldn't I just have a good chance to save more money after the fact? lol Seriously, excellent list and probably a good timely post. Nice job.

jeff belonger

Hi Erica, very written post. I just don't think sellers get it. Maybe we agents make it look too easy !

It just makes sense to hire a professional but sometimes one must fail to learn...

scare tactics? i've seen too many fisbos succeed to agree with you.

Very good tips, Erica. Now to make the consumer understand!

Great reminders Erica! It's so much better to have someone with the time, education, experience, dedication, energy, savvy and... did I say TIME (?!!!) to represent the seller in a transaction!

Erica- KUDO'S Excellent post and very well written.

"But I bought a book. For only $19.95 I have all the information I could ever want to sell my home. Besides, I took a class in marketing in college."

The things we hear!

Not sure if it's state-by-state, but here in Oregon a seller of a property has to do and know everything that a real estate agent would in the scope of selling their home. They are held accountable. That, in and of itself, should suggest that sellers seek out a professional. Disclosures are a big no-no if omitted, for starters. Great post Erica.

Thanks to everyone who commented on the post. Interesting that several mentioned the phrase "scare tactic". No I am not intending to scare a FSBO, just tell it like I see it.

This is not an easy environment for anyone to sell a home, especially if you are unrepresented.

AWESOME AWESOME post! You get a reblog from me

Nashville short sales, Nashville MLS search, Nashville homes for sale, Franklin Tn homes for sale

Knowing they are pre qualified for the value of the house has got to be one of the harder things for a FSBO owner to be able to verify -- yet the REALTOR® can make sure the owner is not inundated with a multitude of unqualified "looky-loos".

Erica: Great points! I have a FSBO story for you. I had just been laid off from my job of 22 years and had ventured into the Real Estate biz. My former boss had gone on the market before I had my license and his home wasn't selling. They ditched their Realtor, a close friend, and decided to go FSBO. They held an open house, a Realtor came in with a client, the client loved it, made an offer (which I was there for so I explained it to them - stupid?), the Realtor took care of all the paperwork, and they closed. The wife now tells everyone there's nothing to selling a home by yourself, all it takes is an open house sign and some balloons. Ugh!! Carrie

The biggest myth is that a FSBO will "save" money. Really? How? First of all, the FSBO seller had better offer a buyer agent commission, or they are losing most of the buyers right there. So now they only have half of the commission left that they think that they would have saved. Most likely the buyer agent will be able to negotiate the price down and the seller would lose the other half anyway. They also would have to hire an attorney to review contracts. This plus the legal liability, and all of the time that it takes, why would anyone want to do it? Chances are they will lose money and time.

Very good and valid points!

Market exposure alone is enough reason to always use an agent, but the protection you give sellers is probably more important.

Even though I was dismayed way back when purchase and sale contracts seemed to add another page each year, there's a good reason for all that... and protecting the seller is one of them. Not too many FSBO sellers would even be aware of all the dangers that lie ahead if they miss some little detail when coming to an agreement.

Erica, I agree with many of the comments - excellent advise! I will reblog for my clients and associates - thank you! ~ Susan

Erica, I agree. FSBO's often do not understand that it is more than just putting a sign in the yard with a phone number on it.

Erica, I just spent three days this week negotiating a contract. The Buyers came in with a ridiculously low offer. The Sellers responded with a high counter offer. If there had not been third-party negotiators, I honestly do not think this deal would have come together. Naturally, the Seller was offended with the ridiculously low offer but we were there to encourage them to ignore it and just counter. They did and after a few more rounds, we had a deal! Who would be there to advise the FSBO?

Carrie's story is priceless! Yes, FSBO is so easy. Just throw an open house and let the realtors who show up do all the work.

One complaint with "non full service / MLS only" sellers is that the firms put the info in the MLS then there is nobody there to do the paperwork or get thru the hurdles. The buyer's agent who brings the buyer to the seller usually ends up doing BOTH sides of work for ONE side (or less) of payment. When bumps happen, the agent must handle everything. And sometimes these unrepresented sellers come to the buyer's agent expecting help / advice and not understanding what the buyer's agent can or cannot do.

A good real estate professional is always worth the investment. Selling or buying a house is the single largest investment most folks will ever do, so why do it without expert help?!

Hello Erica:

Is this working for you? Are you pursuing For Sale By Owner's on a regular basis and deploying this tactical approach? There is lots of advice on this subject and I would like to know which one is actually used successfully.

I understand that you can save quite a bit of money by skipping that whole doctor/hospital thing when a child is born. Who cares about risk?

Erica,
I have seen some FSBOs that they take forever and they don't seel, just the poor sign standing out there with not a lucky buyer !

great blog !

AUG

2010

All 5 points you mentioned are great points for FSBO to read. Good post, thanks.

thank you this is a good post, Thank you for sharing this I have printed and will add this to my FSBO package

AUG

2010

Erica.. You make some *alot* of very good points. Unfortunately, most FSBO's think they know it all until it is too late.

Hopefully your blog will shed some light for the FSBO's and they will reconsider, and list their properties with Realtors instead.

Erica.. This is worth another comment...

I just learned something new from your blog. If I'm in this business day in and day out, and still can learn something, how much do you think FSBO are missing?

Thanks again for a blog full of wonderful information.

AUG

2010

Great Post Erica, and great comments all.

Excellent argument for a FSBO to choose a Realtor. Great job. LOVE that photo.

AUG

2010

Terrific reminder as to the shifts in our industry...it's definitely a matter for a pro, today.

AUG

2010

All great points and I hope those who are trying this dangerous taks read this and change their wicked ways

AUG

2010

I guess you already know right now, but I like your blog :-)! Thanks for sharing Erica. Much success to you...

SEP

2010

Thanks for the post and the great comments. This is good stuff.

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Erica Ramus - SchuylkillRealEstate.com - Schuylkill County PA Real Estate

Pottsville, PA

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Erica Ramus - Ramus Realty Group - Pottsville, PA

Address: 300 Mauch Chunk St. Suite A, Pottsville, PA, 17901

Office Phone: (570) 622-6006 x 301

Cell Phone: (570) 449-2131

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