FSBO right for me? (For Sale by Owner)
believe that selling a home is simple and wonder why they should pay
a broker fee for something they could do themselves. Almost half of
all the FSBO’s last year said 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 say 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 lawyer, escrow and
loan officers, marketing and advertising…they would have been better
off to have paid the broker’s fee which would have included many
of the upfront charges.
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.
These are the questions you need to know
before assuming the responsibility versus employing a professional:
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 home.
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 low-ballers. 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. 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 quicker and more profitably. A professional real
estate agent will have a complete team, from lenders to title reps for
you to utilize…and they’ll be at your disposal.
I fully understand the legal ramifications and necessary steps required
in selling a home?
Beside the local requirements, federal and state requirements must be
met. If you are not aware of these, the closing/title company will provide
the necessary documents and charge you on top of the settlement fees for
this additional service and it can (and usually does) cause delays in
the closing. A professional real estate agent can avoid these problems
and the extra costs.
aware of the current market condition and how to cope in an aggressive
and ever changing market?
The marketing approach will depend on the current conditions in the market…the
inventory, Internet market and what other professional agents (competition)
are doing. For example, currently (November 2005) there is an extremely
high inventory (currently over 4,700 properties on the market in Fairfax
County alone) of homes on the market, and a low demand of purchasers.
a home is not a simple process and the inexperienced seller can inadvertently
give a buyer a chance to back out of a contract at the last minute.