Why "For Sale By Owner" May NOT Save you Money.....
I have often heard people say they are going to sell their house without using an agent to "save the REALTOR fee or commission". They seem to think that all we do is fill out the listing agreement and then show up at closing to collect our commission. In this blog the Hansons list several things that home owners should consider before trying to go FSBO!
In some markets across the country, the "Thinventory" is sooo thin....that it has Sellers believing whispering that your house is for sale to the neighbor....telling your friends on Facebook...doing a quick board on Pinterest will certainly sell
your house in a minute for whatever the price was that the Seller decided was "fair market value".
How hard can it be to sell a house ? You have a friend come and stage it...you have maintained it ...updated it...(or not)...and several people have said..."If you ever decide to sell Call ME "....so it can't be much of a challenge...put a sign in the yard...announce it on Facebook...throw it on Craig's
list...whatever local options are available...grab 'em and GO...and POOF...you will instantly have a pool of buyers and have the tough decision of which offer is best to take...'right ?
Who knows the house better than the people who have lived in it ? Tour director has to be an easy job when you are selling something you loved and lived in for a long time.
AND....Best of all....you ...Mr./Mrs/Ms FizzBo (For Sale By Owner) you are saving all that commission you are not paying a Realtor for something you could easily do yourself ! WOW !
Now....Let's look at this situation in the light of reality and see if anything changes.
- Buyers are smarter than you think....they know you aren't paying commission and will discount an offer by the commission amount.
- Do you know ALL the required paperwork and disclosures that your state requires ? What are the liability consequences if you do not do this properly ?
- Do you know who the Lenders are in your market that can reliabily close a transaction ? (It will never be ALL of them in any market.)
- Do you know the things an inspector is likely to want repaired/replaced ?
- Does your community require their own inspection ?
- Who will hold the earnest money if you get an offer ?
- What is your back up plan for Buyers who want to see the house when you are not available ?
- With over 95% of Buyers doing their homesearch on the internet how will your listing compete with Brokers who offer significant internet exposure ?
- How did you arrive at the list price ...? If it's what you want...should have, have invested...your price may be higher than the market will accept.
- Do you have experience in negotiatng the things a Buyer can ask for/demand after an inspection ?
- Do you know what items from an inspection are really defects and which are "wish list" items from the Buyer ?
- What are your closing costs as a Seller ?
- What will the net proceeds be for you after your costs are deducted ?
- Every day your house stays on the market, it costs you money and people wonder why it is "stale." Your inability to market your home effectively will mean a smaller pool of potential buyers.
- Fewer than 8% of all homeowners nationally sell their home on their own...a historic low.
- Here is the statistic that offers the BIGGEST Surprise and the largest reward for listing with an agent....Sellers who list with an agent net a HIGHER return on their investment than those who list on their own.
If you or anyone you know is considering selling their home in southeastern Wisconsin, Sally K. & David L. Hanson would be honored to be of service for all things real estate.
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