With homes selling quickly and values rising in the Southwest Louisiana real estate market, more homeowners are deciding to try to sell their home on their own as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.
Most homeowners have busy lives with job responsibilities and juggling extracurricular activities. When you list your property as a For Sale by Owner, are you prepared to be available to show, coordinate and negotiate with many individuals? Listed below are a few points to consider when you are thinking of selling your Lake Charles Home For Sale by Owner:
1. There Will Be Many People to Negotiate With Listed below are some of the people with whom you must be prepared to communicate with if you decide to For Sale By Owner:
- The buyer who wants the best deal possible
- The buyer’s Realotr who solely represents the best interest of the buyer
- The home inspection companies, which work for the buyer and will almost always find some problems with the house
- The appraiser if there is a question of value
- The Title company/closing paralegal or attorney
2. Marketing to Prospective Purchasers The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial. How do you plan to market your Lake Charles home to prospective buyers? Recent studies have shown that 89% of buyers search online for a home. Most real estate agents have an internet strategy to promote the sale of your home. Do You?
3. Results Come from the Internet Where do buyers find the home they actually purchased?
- 44% on the internet
- 33% from a Real Estate Agent
- 9% from a yard sign
- 1% from newspaper
4. FSBOing has Become More and More Difficult
Are you familiar with the language in the Louisiana Residential Agreement to Buy or Sell and do you know how to execute any additional required addendums to the contract? The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years. The 8% share represents the lowest recorded figure since NAR began collecting data in 1981. Lenders are particular about the documents that must be provided to underwriters.
5. How will You Position your Lake Charles Home to Sell? Buyers are interested in:
The Seller can only control two factors in the sales process, Price & Condition. To calculate the odds of your house selling, you must research comparative data. Realtors have access to the Multiple Listing Service to view how many closed transactions occurred in the last six months, how many new listings are for sale and specifically homes in your geographic zone which will be your competition. Your odds of selling your Lake Charles is calculated by an equation of the number of closed sales divided by the market flow rate. Most times For Sale By Owners do not have knowledge of the real estate market to understand how to correctly price their Lake Charles Home for Sale. A CMA or comparative market analysis is just one service a Lake Charles Realtor can provide a seller with and the CMA is used as a tool to price the home to sell and sell quickly.
Bottom Line Before you decide to take on the challenges of selling your Lake Charles home on your own, sit down with a real estate professional and see what they have to offer. More than likely For Sale by Owners are going to be contacted by a Realtor who has an interested buyer and the Realtor will ask the For Sale by Owner to do a "one time listing" with a commission to be paid. Realtors are your best source for a pool of buyers!
Pricing is not what you think your home is worth, it is all about what a buyer is willing to pay or fair market value. We are experiencing many appraisal issues with Lake Charles Real Estate. The mistake that I see all to often with For Sale By Owners is the home is not priced to sell correctly and even if the home does go under contract, the seller is often surprised when the house does not appraise.