Many homeowners believe that to maximize their home sale they should sell it themselves. At first glance, they feel selling a home is simple. Why should they pay a broker fee for something they could do themselves?  In fact, close to 12% of all the homes sold last year were sold for sale by owner (FSBO).

However, close to half of the FSBOs said that they would hire a professional next time they sold. 30% said they were unhappy with the results they achieved by going FSBO. Why?

Many FSBOs told us the time, paperwork, and everyday responsibilities involved were not worth the amount of money that they would have 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 and advertising . . . they would have been better off paying the broker’s fee, which would have included many of these services.

Selling a home requires an intimate understanding of the real estate market at large and in your area. 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 FSBOs discovered that the money they lost as a result of a poor decision outweighed the commission they would have paid.

Before you decide to sell FSBO, consider these questions and weigh the answers of assuming total responsibility versus employing a professional agent. A little time spent investigating up front will pay off tenfold in the end.

Questions to consider Before Deciding Whether to Sell FSBO:

Do I have the time, energy, know-how, and ability to devote a fully focused 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. The reality is that it takes several hours a day to sell your home.

Am I prepared to deal with an onslaught of buyers who perceive FSBOs as targets for low-balling?

One of the challenges of selling a home is screening unqualified prospects and dealing with low-ball offers. Most sellers do not realize how much time, effort, and expertise is required to spot these people quickly before they waste the Seller’s time. We educate our clients on how settling for a low-ball bid is worse than paying broker commissions. That’s how we are able to offer our “We Pay Our Own Fee Guarantee” to our exclusive listing clients.

Am I offering financing options to the buyer?  Am I prepared to answer questions about financing?

Two of the keys to selling, whether it is a home, a car or anything, is to have all the necessary information a prospective buyer needs and to offer them financing 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 openly offering financing options, you give the homebuyer the ability to approach on their terms, potentially selling your home more quickly and more profitably. A professional real estate agent will have a complete team, from lenders to title representatives for you to utilize.

Do I fully understand the legal ramifications and the necessary steps required in selling a home?

Many homes sales have been lost due to incomplete paperwork, lack of inspections, or not meeting the state’s disclosure laws. Are you completely informed of all the steps necessary to sell real estate in your state?  If not, a real estate professional would be able to potentially save you weeks in delays on your transaction.

Am I capable 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. Our team are trained in “legalese,” and both reading and writing contracts.

Have I contacted the necessary professionals: title, inspector (home pests and hazards), attorney and escrow company on-time and consistent with my contract?

Are you familiar with top inspectors and escrow companies? Do not randomly select inspectors, attorneys, and title representatives out of a hat. Like any profession there are inadequate individuals who will slow, delay and possibly even cost you the transaction. You are more than entitled to shop around for the best professionals. We have already done the shopping for you and can recommend our top service providers in your area. We don’t get paid any referral fees; we do it because of our “team approach” to real estate and because it’s the right thing to do.

I sincerely hope these tips and ideas will help you avoid a costly “experiment.” If these questions raise any concerns and you wish to speak with a professional, please contact me. We would consider it a privilege to serve you! If you would like a FREE consultation, call our office and ask for me!

Sincerely,

Tyler West

P.S. We have many services for the FSBO at https://premiers.co/fsbo to help you avoid costly mistakes.

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