When it comes to housing, this year has seen a nationwide price decline and combine that with lots of ARM and Balloon failed mortgages, it puts a lot of sellers in a tight situation. Many home sellers owe more or as much as the house is worth and they have no funds to pay for the services of a licensed Realtor to market their home. The alternative - try to sell it as FSBO (For Sale By Owner).
Many young, tech savvy homeowners, think that they have what it takes to do it on their own. And some of them do succeed. However, knowing how to design a flyer, put a sign on the yard, or put an ad on a couple of websites, doesn't get close to getting the house SOLD. If you still think you can do it, ask yourself a couple of questions and answer them honestly.
1. Would you be able to stay objective throughout the entire process? You will hear strangers talking about your outdated kitchen, your "wild" imagination in coloring and decorating, your second rate DIY improvements, your "cleaning skills", your pet Rover's smelly stuff and a lot worse. Will you be able to overcome your emotional ties to the house and still make a deal with the buyer?
2. Are you up to the hassle? Yes, you are college educated, and yes you have researched the subject of selling a house and you know that it requires a lot of paperwork... but do you really know how much paperwork is involved? Between contracts, disclosure requirements, adendas and amendments, doing the deal requires, as a colleague put it, "more documentation than the average Middle East cease-fire agreement". And when you start negotiating, you need to listen closely and measure carefully every response and not let your emotions get on the way. If all that sounds too much for your nerves, stick with a broker.
3. Do you have the time that it requires? You got the sign in the yard and the ad in the newspaper, now all you have to do is wait for the phone calls and show the house. Someone calls and wants to look at the house tomorrow morning, only one problem, you work during the day. Prospective buyers like to view houses at their convenience, not YOURS. How about an Open House? You are tied down to the house for hours waiting on that right person, and when they show up you're not so sure what to say or how to present the house to make it appealing, yet not sounding pushy.
4. Serious Buyers or just Lookers? You finally got a cute couple showing up to view your house! You think you're one step away from hitting a home run. Are you really? How do you know for sure that they are going to buy and not just killing time (theirs and yours)? Do you know if they have enough money to buy YOUR home? Do you know what to do or where to take them to find them the right financing for the purchase of your home? What the rates are? What the mortgage payment would be? ......... (Are you tired yet?)
And there is plenty more: advertising, dates, rates, updates, pictures, safety, security, and liabilities. With all of the above, plant on spending at least 10 hours per week to service the FSBO while your house is on the market.
In conclusion: Is it worth it to sell your home FSBO? Absolutely! If you have the time and expertise, by all means - do so! But if the only expertise you have on Real Estate is buying the home you're trying to sell, you will need help going thru the process. And if you already have a full time job and/or are busy packing to move and don't have the necessary time to do it right, you WILL need help!
Over 70% of FSBOs end up listing with a Realtor. You can still try and be one of the other 30%, but if you decide to use the services of a Realtor, please, do your homework: interview at least 2 or 3 people for the job. They all have different skills and experiences, they have different approches to the job and different personalities. Pick the one that best suits your needs and compliments your personality! Good luck and happy selling!
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