For Sale By Owner (FSBO) Pitfalls
So you’re attempting to offer your home on your own, or you are thinking of selling for sale by owner. Selling your home is most people’s biggest business transaction they will ever make in their life, and so, it goes with numerous obligations that you must know as to whether you are prepared for this. Here are some examples:
A. What is your marketing plan, marketing material and who is your target market, how are you going to accomplish this?
B. Are you ready to assume all the legal paperwork and liabilities included in finishing your home sale?
C. How did you arrive at your price and what sales data do you have on hand to come to that conclusion?
D. Are you accessible to recieve calls from Realtors and Buyers during all hours of the day including evenings and weekends?
E. Are you available to show your home at all house of the day including evenings and weekends?
F. Are you available on saturdays and sundays to do open houses to show your home to prospective buyers which may result in an offer.
F. Are you really saving money with for sale by owner?
There are reasons why 85% of For Sale By Owners (FSBO’s) switch to an expert Realtor, 8% either take their homes off the market or wind up paying the 2% to a Buyer’s Agent, and just 7% sell their home privately, whether for market value or less.
What To Anticipate When Selling On Your Own:
You will need to devote all your time to make yourself accessible for telephone inquires and showings at all hours of the day.
You will get numerous compliments and positive input on your home and interior decor from visitors and then wonder why they are not putting an offer.
There are three types of Buyers:
1. The First Time Home Buyer (FTHB) are very scared of buying their first home and will seek the free advice of a Realtor to help them guide them through the home buying process. They rarely buy their first home through FSBO.
2. Then there is the experienced home buyer trading up. Usually they already have an established positive relationship with a real estate agent from their previous home purchase and recent or upcoming sale. They will most likely seek the free advice from a real estate agent and have them show them potential houses.
3. Very experienced “Investor” Buyers, who are open to the FSBO market for “good deals”, will often give you verbal offers, and they know you are not paying a Realtor commission so they will automatically take off 4.5% you are trying to save off the top, before they even start negotiating the final price.
You may get offers from Buyers without Realtors that will often fall through since the Realtor’s job is to qualify the Buyer before spending the time to create an offer and showing them houses. Worse you waste your time rejecting later better offers and your home will come back on the market and people will wonder why the sale didn’t go through, often stigmatizing the home as something is wrong with it even though nothing may be wrong. 95% of Buyers work with a Realtor since it is free. You must ask yourself… Is attempting to save an extra 2% from your sale price worth the extra risks and effort? You will have to pay upfront the FSBO home listing company to be on their website. Your energy and time that you’ll be wasting selling your home. The legal risks and liabilities before, during, and after the fact the sales transaction. For Sale By Owner Homes on average sell for less than if they were properly marketed, negotiated and sold by a Real Estate Realtor. With the right Real Estate Agent, the property owner will net more than if they sold on their own. You’ve presumably seen a home where you live labelled “Sold by Owner”.
You’ll have to ask yourself next time:
How much did the house sell for and where can I get that information?
Sometimes the Buyer has an agent and did the sellers pay his commission?
How long was the property on the market before it sold, did it influence their sales price?
The Wayne Chung Home Marketing System
Having this information now, will permit you to make an informed choice to choose who to market and get your home sold. Wayne Chung’s Home Marketing System ensures you will net more for your home through our proven and refined marketing plan and past successful sales. Call Wayne Now at (647) 237-0151 for a free no obligation consultation and free home evaluation!