For Sale By Owner Information
In some cases, people think the best idea may be to sell their home themselves, but they don’t always consider all the factors that go into selling a home. Saving money on real estate commissions can cost you a fortune in lost time and money for your home. Here is a list of just some of the basics that as your listing agent I will do:
• You will need an expert price valuation so your home can sell quickly without under-pricing.
• You will need a comprehensive marketing campaign in order to receive the highest possible price for your home.
• You will need to network with other Realtors who have buyers who may be interested in purchasing your home.
• You will need a local advertising campaign including the creation of print and Internet advertising.
• You will need proper signage to promote your home.
• You will need the proper legal representation to assure the transaction takes place smoothly.
• You will need someone to coordinate showings and other appointments.
• You will need someone to conduct, and drive traffic to, your open house.
• You will need an experienced negotiator who knows what is reasonable and what is not.
• You will need an expert who understands contingencies, cash offers, and so much more.
1) FSBO Market Share is Shrinking
According to the most current data from the National Association of Realtors (NAR), FSBO sales accounted for only 8% of all home sales in 2016*.
2) The Price Isn’t Right
While “location, location, location” might be the home buyer’s mantra, as a home seller, that’s one variable you really can’t change. Instead, the key factor to selling your home in a reasonable amount of time is pricing it correctly, which isn’t nearly as easy to do as you might think. Sure, you can go online and see what nearby homes have sold for, but are you really comparing apples to apples here? An experienced Realtor will be able to perform a detailed market analysis which not only takes into account your home’s condition and any improvements you might have made, but can generate an up-to-the-minute temperature reading of just how hot (or not) your local market really is.
3) Yard Signs and Newspaper Ads Just Won’t Cut It
Believe it or not, many FSBO home sellers still believe that all they have to do is throw up a “For Sale” sign in the yard and the world will beat a path to their doors. Sorry, but today’s tech-savvy buyers prefer to house-hunt in more methodical ways than simply driving around the neighborhood.
4) Craigslist Can Be Creepy
Okay, so you’re internet-savvy, you know all about Craigslist and similar online, free classified listings. That’s fantastic, since NAR’s 2014 housing market profile shows that 92% of all home buyers use the internet to help them in their search**. But these online classifieds are also seen as a happy hunting grounds for scammers, criminals, and dangerous people you really do NOT want to be admitting to your home. Realtors don’t have to resort to dubious bargain-basement listings, but can instead list your home on highly-qualified sites such as Zillow or Realtor.com.
5) Your FB Friends Just Aren’t In the Market
Marketing via social media, what could be more up-to-the-minute? Sure, you may have hundreds of Facebook friends and Twitter followers, so that’s a potentially sizable audience if you decide to advertise your home that way. Think about it, though – how many of them actually live in your area? And of these, how many are actually looking for a new home? If you do manage to sell your home that way, you’ll be one of the lucky few.
6) Realtors Have All the Right Tools
91% of all Realtors make use of social media sites as a marketing tool** . Just about everyone browsing their page is interested in buying a home in the local area. What’s more, Realtors are actively engaged in driving traffic to their own websites and they also have the capacity to list homes on the Multiple Listing Service (MLS). In order to list a home on the MLS, a FSBO seller will have to pay an outside agency several hundred dollars, as well as having to cover the cost of the buyer’s agent fee.
7) They Can’t Buy It If They Can’t See It
One thing you might not be taking into account as a potential DIY home seller is just how available you’ll need to be in order to show your home. Are you really going to be able to call in sick or cancel your plans every time someone wants to look at your home? Potential buyers aren’t going to want to work around your convenience. A professional Realtor, however, doesn’t need to take a day off work in order to show your home, since this IS his/her job.
8) You Don’t Want To Waste Your Time With Bargain Hunters
If you’re acting as your own sales agent, how do you decide who’s a legitimate buyer and who’s just going to be wasting your time? Seller’s agents have the necessary tools to determine whether a buyer is pre-qualified with a home loan sufficient to cover the cost of your listing. What’s more, FSBO homes are more likely to appeal to the type of buyer who’s out for a rock-bottom bargain-basement deal and may even go so far as to want you to give them a cut of the commission you’re saving by foregoing a Realtor’s services.
9) You’re Drowning in Paperwork
In case you’re not already getting the picture, selling a home is pretty hard work! Not only do you have to find and vet potential buyers, but once you’ve found that buyer, then the real headaches begin. Every detail must be attended to in order to make the sale go through…and what’s more, if you neglect something crucial like a mandatory disclosure or inspection report, you may find yourself facing not just the loss of the sale, but also potentially serious legal repercussions. There's still paperwork to go through even if you work with an agent, but they will help you through it and make sure you're protected.
10) You Might Even Make Money With A Realtor
Bottom line, the national average FSBO home in 2016 sold for 24.5% LESS than agent assisted homes*. With agent commissions typically being 6% total that is a loss of 18.5% that you could have made extra on the sale of your home.
If you’re willing to put up with all the headaches of listing, selling, and closing on a home, and you don’t mind settling for what may well be a lower price, then a FSBO sale may be for you. If, on the other hand, this all sounds like too much work for too little payoff, you’re in good company. I can help.
If you want more information about how I can help sell your home please fill out my quick real estate sellers request form and tell me about your property. There is no obligation and your information will be used exclusively to provide you with superior real estate services.
*“NAR 2016 Profile of Home Buyers and Sellers” 35th Edition