FSBO

By
Real Estate Agent with McCall Montgomery Real Estate


Title: WebReport - Attention: For Sale By Owners!
Subject: Attention: For Sale By Owners!
Body: Here is your requested report. We hope you enjoy it! 

Sell Your Home Yourself And?You Can Save The Commission! 

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 FSBOs 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 FSBOs 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 FSBOs 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: 

1. 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. 

2. Am I prepared to deal with an onslaught of buyers who perceive FSBOs as targets for low-balling? 

One of the challenges of selling a home is screening unqualified prospects and dealing with low-ballers. It often goes unnoticed...how much time, effort and expertise it requires to spot these people quickly. Settling for a low-ball bid is usually worse than paying broker commissions. 

3. 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 readily available 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 you 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 all be at your disposal. 

4. 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 state's disclosure laws. Are you completely informed of all the steps necessary to sell real estate? If not, a professional would be a wise choice. 

5. 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 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. 

6. Have I contacted the necessary professionals... title, inspector (home and pest), attorney and escrow company? 

Are you familiar with the 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! 

Posted by

Carri "Mac" Brown- REALTOR

www.mccallmontgomery.com

www.carribrown.com

www.ouragentswin.com

 

Comments (2)

John McCarthy
North Hampton, NH
Realtor - Seacoast NH

Carri,

All good points. Its hard to convince a FSBO that professional representation is not about what it costs, but what it can save the owner. Professional marketing reduces time on the market and cuts mortgage cost, and homeowners insurance and tax cost. Last summer I was previewing rental homes for a family relocating from Colorado. During a meeting with one home owner trying to rent, she mentioned she and her husband had built another home across town and were trying to sell this one by themselves. A buyer made an offer but the deal fell apart because of financing issues. Her exact words, "and that's how we got into the landlord business."

Dec 12, 2010 11:40 PM
Tom Priester
Paradise Sharks - Jupiter, FL
Paradise Sharks

Carri, some terrific information in your blog and I truly appreciate you sharing with us Rainers. Hope you have a wonderful holiday season as we put the wrapping on another year. Cheers!

Dec 13, 2010 12:11 AM