Attention: For Sale By Owners!
Why People Are Afraid To Buy From You!
Questions To Consider:
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 FSBO s 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.
Many FSBO s 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
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 FSBO s 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.
- 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
- Am I prepared to deal with an onslaught of buyers who
perceive FSBO s as targets for low balling?
- One of the challenges of selling a home is screening
unqualified prospects and dealing with lowballers. It often
goes unnoticed... how much time, effort and expertise it
requires to spot these people quickly. Settling for a
lowball bid is usually worse than paying broker commissions.
- 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 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 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 be
at your disposal.
- 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 states
disclosure laws. Are you completely informed of all the
steps necessary to sell real estate? If not, a professional
would be a wise choice.
- 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
any 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.
- Have I contacted the necessary
professionals....title, inspector (home and pest), attorney,
and escrow company?
- Are you familiar with 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