Be very careful! Don’t sell your home yourself. A For Sale by Owner home sale is a mistake. There’s a good reason I say this, and before you decide to try selling your own home, consider the following points.
For Sale By Owner is a Mistake
1. Most buyers work with a buyer’s agent who looks through the current MLS listings. Therefore, most buyers will never see your listing if it isn’t on the MLS. Your listing will be invisible to most of the market.
2. FSBOs, for sale by owners, get lower offers. To the buyer it makes sense. They think you’ll take less because you’re not paying a commission. To save $10,000 to get $10,000 less make little sense and you have to do all of the leg work yourself.
3. Who pays for the advertising? A real estate agent would normally pay for all advertising costs. If it takes your home a year to sale, how much will you have to spend on advertising?
Resources to Consider
4. Do you have resources? The real estate agent has many tools at their disposal to determine the best price for your home. True, you can dig through public records, but your time is worth something, right?
5. Do you know the market? What is your target market? Are you looking for young couples, families with children, or retirees? You will want to know this before writing your ads. An experienced real estate agent will know the answers to these questions.
6. Are you aware of any disclosures that are required or who will pay the real estate transfer tax? Just because you sell it yourself doesn’t mean you get to ignore the laws.
7. Are you a good salesperson? Can you develop rapport and answer objections without getting defensive. This would scare off a buyer who has concerns about your home.
Paperwork Takes Time and Knowledge
8. A real estate agent handles the paperwork. Can you help the buyer fill out an offer to purchase properly? Do you have the other closing documents ready?
9. Negotiations are imperative to a successful home sale. Are you prepared to negotiate? Are you prepared to counter offer without sending the buyer running in the other direction? A good real estate agent isn’t afraid to negotiate on your behalf and is trained to do so.
10. You may not save in the end. Documents, newspaper advertising, signs for the yard, and more – it’s all your expense when you sell it yourself. Then, you need to be prepared to negotiate if you get low offers. When trying to save on commission, many sellers net less at the closing table.
This is why most “FSBO” sellers eventually ask a trained real estate agent for help. You could learn to sell your home, but is it worth the time when it’s possible you won’t save anything? Unless you know what you’re doing, be cautious about selling your home yourself. I’d be happy to discuss this further with you and to explain my marketing strategy. Just contact me.