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One of The Biggest mistakes FSBOs make when selling their home .

By
Real Estate Agent with RE/MAX Centre Realtors

Many home owners try to sell their home on their own so as to save the commision because their home values have declined and they feel they have no choice but to try and sell on their own.

Yes it is possible to sell your home without hiring a real estate agent. If you can find a buyer willing to pay the price you want for your home you can sell it. You might already have a friend who has offered to buy your home or may know someone at work who knows somebody looking for a house. 

Please find out about local laws and regulations and stae laws when you sell your home. Talk to an attorney to help with the contract.

If you have decided to sell your home on your own the most important things to know is the market value of your home. If you base it on the selling price of a house down the street that was a foreclosure , your home may be worth more that that. If you base it on what you heard from the neighbors was the purchase price of their home or sale price of another home in the neighborhood , it might not be true . Unless you have the description of that house, your house may or may not have upgrades and additions similar to ones in that house.

If you find a buyer willing to pay what you are asking, and the price is more that market value, you may find out a few weeks later when the buyer's lender's  appraiser comes to appraise the house that it does not appraise for the agreed upon price . The buyers will not be able to get the mortgage for the amount they want and you may have to renegotiate and depending on the mortgage contingency you may lose the buyers.

If you want to sell your home on your own get an appraisal done so you can tell potential buyers that it appraised for the amount .

It is important to know the market value when you sell your home on your own. 

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When you read about events please check the year for the event as some people find information a year later and think it is for that year. . The posts remain online even after the event.

Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com

 

She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com

If you would like a FREE MARKET EVALUATION OF YOUR HOME IN PHILADELPHIA, BUCKS or MONTGOMERY COUNTY call me at 2152758491

 Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others  in my post and comments is not to be construed to be  legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.

IF YOU WOULD LIKE TO SUBSCRIBE TO MY BLOG         CLICK HERE   OR EMAIL ME AT Gita01@aol.com

 

Ric Mills
Keller Williams Southern Az - Tucson, AZ
Integrity, Honesty, and Vast Real Estate Knowledge

Great advise.  If only FSBO would open up their ears and listen.  Some luckily will and will get their home sold.  Many will turn it over to a Realtor to get it done.  There is a reason that 97% of SFR homes are sold by Realtors?

Oct 27, 2012 03:59 AM
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad
A FSBO in this market in San Diego is few and far between. However I would expect the homeowners no longer underwater and need to save the commission to stay above water will venture out and attempt to sell on their own. And that of course is a new source of leads for many realtors.
Oct 27, 2012 04:22 AM
Tina Gleisner
Home Tips for Women - Portsmouth, NH
Home Tips for Women

While I've always used a realtor to sell my homes, we did once buy a FSBO and it went fine ... but actually, I felt like we owed the realtor something, so paid her $1,000 to answer questions & give us standard forms. Think it was a win-win for everyone & we weren't newbies as this was 6th house for us.

Oct 27, 2012 04:28 AM
Dana Basiliere
Rossi & Riina Real Estate - Williston, VT
Making deals "Happen"

Hi Gita,

There are so many pitfalls I may borrow your FSBO idea and write on it also. Can you tell a FSBO transaction killed a domino deal. (yes it did) long story but they did not have an agent to watch the contingencies.

Oct 27, 2012 07:14 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

Appraisals have been 'deadly" here recently - even with good CMA's and experience. So far, MY people have been on the "winning" side of these issues!

A good point to mention to FSBO's!!

Oct 27, 2012 12:23 PM
EMILIA B COOPER, REALTOR® SFR.NCHSE.AHWD
LAROSA REALTY - Orlando, FL
Short Sales, Foreclosure & Bank Owned Real Estate

Gita great post I will save it, thank you for sharing!!

Oct 27, 2012 12:53 PM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Gita,  an appraisal is a valuable tool for homeowners who desire to sell their home without the help of a Realtor. 

Oct 27, 2012 01:09 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Valerie,  Sellers usually call agents for free market analysis.

Nan. It is difficult but can be done if they have a good attorney and they find a buyer who is qualified. These days even if  a buyer appears to be quailfied lenders are so strict that there is no guarantee.

Terry, I hope fsbos will read this.

Bob, I had a fsbo call me saying she had a radon test done on her own and it showed a high level should she disclose ? 

Don, Thanks for the tip.

 

Oct 27, 2012 09:25 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Sharon, In most cases the commission is paid by sellers so buyers know they do not have to pay their agent and the main reason they go to fsbos is to get a break . They want the seller to give them the money they are saving by not listing with an agent. 

Oct 27, 2012 09:28 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Kimo, Most of them eventually list with an agent.

Karen, I agree. They should be aware of state real estate laws.

Oct 27, 2012 09:30 PM
M. Lynn Delatte
Developers Realty - Broadview Heights, OH

Also, FSBOs should realize that if the buyers have an agent, the transaction will go smoother, but the agent will be working 100% for the buyers.  The FSBO also, most likely, will be the one directly paying the agent for bringing the buyers. 

Oct 27, 2012 10:16 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Marte, I often wonder why old information appears on first page.

Ric, In this market even  experienced agents are finding it difficult to find buyers.

Michael, If they have patience,knowledge and luck they can sell it on their own.

Tina, That is a win win. for all.

Dana,Thanks for the reminder to check with fsbos if they are involved indirectly with another transaction of yours.

 

 

Oct 27, 2012 10:26 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Travis, I hope they will read your comments.

Emilia, Thank you.Good luck.

Sharon, I agree. they should get an appraisal.

Lynn, The buyer agent will represent the buyer. Sellers should get an attorney.

Oct 27, 2012 10:28 PM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

The number one thing FSBOs need to do is get on the MLS.  Number 2 is pricing it right.  Most FSBO sellers don't realize this it seems.

Oct 28, 2012 01:19 AM
Steve Higgins
RE/MAX Kelowna - Kelowna, BC

Hi Gita,

Good post and advice. I find most FSBO's end up with a Realtor if they really want to sell their home.

Oct 28, 2012 12:35 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Rob, i agree MLS is important but some companies do help by posting it in mls for a small fee.

Steve, I find the same thing.

Oct 28, 2012 08:59 PM
Rob Renk
Center Street Lending - McKinney, TX
AE | Fast Fix/Flip Loans for Residential Investors

Legally, the real estet market is very complex for FSBO's and they should tread lightly when they have no experience.  The fee charged by professional reql estet marketers is well worth the investment.  Alot of FSBO's don't realize the time and effort needed to sell a home.

Oct 28, 2012 09:08 PM
Jon Quist
REALTY EXECUTIVES ARIZONA TERRITORY - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

I don't ever do listings, but I certainly have an opinion on FSBO's. "DON'T BE A FSBO, PERIOD".

Oct 30, 2012 06:11 AM
Brian Kuhns
Coldwell Banker Roth Wehrly Graber - Fort Wayne, IN
Fort Wayne Real Estate by Brian Kuhns

You're right Gita, FSBO's often mistakenly compound their difficulty in selling a home on their own by setting a list price that doesn't reflect market value...ultimately only helping to sell their neighbors home which is priced correctly 

Nov 11, 2012 09:33 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Rob, They should have an attorney and an appraisal if they want to sell on their own.

John, Unless they have time, know the value of their home and know the laws they should not try to sell on their own. , it is difficult to sell in this market.

Nov 11, 2012 09:40 PM