Some believe that to maximize their profit on a home sale they should sell it themselves. At first, 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 23% of all the homes sold last year were sold for sale by owner (FSBO).
Yet close to 50% of the FSBO's said that they would hire a professional next time they sold. 30% said they were unhappy with the results they achieved by choosing for sale by owners. Why?
Many for sale by owners 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 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.
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:
Am I prepared to deal with an onslaught of buyers who perceive FSBO's as targets for low balling?
Am I offering financing options to the buyer? Am I prepared to answer questions about financing?
Do I fully understand the legal ramifications and necessary steps required in selling a home?
Do I have the capability of handling the legal contracts, agreements and any disputes with buyers before or after the offer is presented?
Have I contacted the necessary professionals....title, inspector (home and pest), attorney, and escrow company?
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