Home For Sale By Owner Sound Attractive ?
Special Report From The American Dream Team:
Attention For Sale By Owners: Are People Afraid To Buy From You?
Many homeowners believe they can maximize their home sale by selling it themselves. At first glance it looks like they will save a lot of money by spending only a few dollars on a sign and ads. Why should they pay a broker’s fee for something they can do themselves. After all, almost 15% of of all homes sold are sold For Sale By Owner (FSBO).
Interesting, then... Why is it a fact that fewer homes are successfully sold by owner today than 5 or 10 years ago? Makes you think! IF something works, you would think more people would be doing it. Surveys by the very reputable Consumer Reports Magazine show 50% of FSBOs who ACTUALLY SOLD say they would use a professional next time! The question is WHY Did They Change Their Mind After A Successful Sale ?
Consumer Reports said: "Many FSBOs told us that the time, paperwork, and everyday responsibilities involved were not worth the amount of money they saved in commissions. For one thing, the buyer always wants to save the commission too, which means nobody saves as much as they thought they would. For others, the financial savings were even more disappointing." By the time they figured the fees paid to consultants, inspectors, appraisers, title lawyers, escrow and loan officers, marketing and advertising, they would have been better off to have paid the broker’s fee. At least the broker would have helped them determine value and marketability without paying for appraisals and inspections. The broker or agent would have paid for the advertising and marketing, provided a free staging consult, and provided free photography (professional photography in some cases). Brokers or agents can also obtain most title lawyer, lender, and escrow services for the seller at no charge whatsoever until the time of closing - when they can be paid from proceeds instead of in advance.... A much better situation to be sure.
Selling a home requires an intimate understanding of the real estate market. There are many more laws than applied when selling other high ticket items, such as cars. If the property is priced too high then it will sit and develop a reputation for being a problem property. IF priced too low, you will cost yourself serious money. Most FSBO’s discover that even in an otherwise successful sale, they lost money as a result of lack of experience. In the final outcome, many realized that they could have saved time AND made more money if they had used a Real Estate Agent and paid the commission after all!
Before you decide to sell FSBO, consider these questions and weigh the consequences of assuming the responsibility instead of hiring a professional. A little time spent investigating what the Real Estate Agent pays for, and how they can help you make more net dollars, may pay off tenfold in the end!
Questions To Consider:
Do I have the time, energy, know how, and
ability to devote a full force effort to sell my home?
One of the keys to selling your home effectively and profitably is complete accessibility at any hour that a buyer wants to call or visit. Many homes sit on the market much longer than necessary because the owner is not available to show the property. Realize that a certain amount of time each day is necessary to sell your home.
Am I prepared to deal with the onslaught of buyers
Who perceive the FSBOs as targets for “LOW BALLING” ?
Another challenge of selling a home is screening unqualified prospects and dealing with “low-ballers”. It often goes unnoticed that much time, effort, and expertise is required to spot these people quickly. Spending time showing and selling a low ball bid is usually worse than paying a broker commission.
Am I offering Financial Options to the buyers? Am
I prepared to answer questions about financing ?
One of the keys to selling, whether it’s a home or a car… anything, is to have all the necessary information the prospective buyer needs and 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. You open up the possibility of selling your home more quickly, at your price, if the financing company can get the job done with even marginal buyers. A professional Real Estate Agent will have a complete team to enhance your profit. Lenders, title reps, inspection companies who are fair and professional, will all be at your disposal.
Do I fully understand the legal ramifications and
all the necessary steps required in selling a home?
Many home sales are lost due to incomplete paperwork, lack of inspections, or not meeting your state’s disclosure laws. Are you completely informed of all the steps necessary to sell real estate? If not you may want to consult with a professional or FSBO Coach.
Am I capable of handling the legal contracts,
agreements, and any disputes with the buyer
that may arise before or after the offer is presented?
Ask yourself: “Am I well versed in legalese? Am I prepared to handle disputes with buyers? Will I know if a professional con artist is playing a game with me?” To avoid any disputes, it is wise to put all negotiations and agreements in writing. Many home sales have been lost due to misinterpretation about what was actually negotiated.
Have I contacted the necessary professionals such as
Title Company, Home and Pest Inspectors, Attorney,
and Escrow Company?
Are you familiar with top inspectors and escrow companies? Don’t just randomly select inspectors, attorneys, and title reps. Like any profession, there are inadequate individuals who will slow, delay, or even cost you the transaction. Be Careful or this could come back to haunt you!
We hope this report has proven educational and will help you avoid the pitfalls many FSBOs go through. If the ideas were valuable, please let us know. If there is any way we can be of further service to you or anyone you care about, please contact our office. I can be reached at 419-654-5666. Your initial consultation is always completely free of charge, at no cost or obligation. We will sit down for 15 – 20 minutes to discuss your needs, and goals. Then you will decide if we can help you get what you want faster, and easier, than doing it yourself. No high pressure, just plain honest talk about what it is going to take to achieve your goals and whether or not our AMERICAN DREAM MARKETING PROGRAM is right for you. We promise you will SELL FASTER, SELL FOR MORE!
You just may call it the “More Money for Less Work” plan. Go ahead and pick up the phone to give me a call. I would love to hear from you!
Lonn Dugan, AMERICAN DREAM TEAM at RE/MAX Masters 419-654-5666
Work with a winner! RE/MAX is the largest Real Estate Company in the World, and sells more homes in the Toledo Market than any other Company. Call me now!
