Many
homeowners believe that to maximize their 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. Why?
Many FSBO's told us 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 to
have paid the broker's fee which would have included many of
these charges up front.
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.
Questions To Consider:
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 lowballers. In a
recent study, 30% of For Sale By Owners were unhappy with
the results they achieved by assuming the responsibility
themselves.
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 quicker 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 possible even cost you the transaction.
If these questions raise some concerns you may want to speak
with a professional
Desert Showcase
