Selling Your Home: For Sale By Owner
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Many people don’t realize that selling a home is a complicated, time-consuming process. With numerous factors to consider such as open houses, advertising, pricing, negotiating and handling the numerous kinds of inquiries, it can be very exhausting and even worse – unfruitful. Many homeowners report the familiar grief after an open house: “I got lots of people, but most were just looking.” “They wanted it for next to nothing.”
You may be thinking, “Why would I need a Realtor to sell my home?” Let me give you just a few of the key reasons why a For Sale By Owners need Help in today’s difficult market:
1. Without working day in and day out in the real estate market it is quite unlikely that a FSBO will have complete understanding about pricing. Often a seller is forced to reduce the price and may have to accept less money for the home than the seller would have received had he or she started at the right price. When a Realtor goes to work with you, they ensure you will receive the most current market stats along with a thorough market analysis report to place your home in a solid market position.
2. A property depreciates the longer it is on the market. Many owners fail to take advantage of this excitement by limiting the market to their immediate contacts and advertising. Ensure your home is advertised 24 hours a day until it is sold. Realtors use a home selling system that is constantly being tested and improved to ensure your home is exposed to the largest pool of QUALIFIED buyers.
3. The two most common people who prey on FSBO’s are:
– #1. Investors / Bargain Hunters: these are people who are looking to capitalize on a FSBO’S lack of negotiating experience and market knowledge to score their next deal. Any time a buyer doesn’t buy from a store or through a sales person they expect to pay substantially less. In a sense they would expect to save the sales commissions or profits that would normally go to a sales person or store owner. Why should someone do all the work a salesperson would do and still pay the same price? For example if the seller is trying to save six percent and the buyer is trying to save six percent, now they are 12 percent apart!
– #2. People who can’t qualify to buy your home: These people will often approach FSBO’s because they have had previous financial difficulties and would want the owner to finance them. While for the right person, this could be a profitable investment, most sellers need to pull as much equity out of the property as possible to be able to move on with their next home.
4. It is important to ensure that only prospects who can qualify are introduced to your home. This eliminates the hassle of “lookers” and non-serious buyers and reduces the chance of strangers who may have activities in mind other than buying a house will come. Realtors often also have some of the best mortgage brokers in the industry working with their team who can pull the necessary strings to help finance a purchase.
5. Did you realize that any time a private seller is away from home, the home is off of the Market? It is important that someone will always be available to handle and follow up with inquiries during both peak hours and off-peak hours.
6. A seller selling privately can expect to put a minimum of 80 hours “work” into the project, without a guaranteed result. This does not account for out-of –pocket expenditures such as advertising, lawn signs, etc. Selling a home can be extremely stressful! Often FSBO’s don’t have the time available to take care of the details, from the first step of marketing to the final sale, because you have a life outside of the sale of your home.
In past markets it was very easy for a For Sale By Owner to sell their home. By all means, if you can do it on your own, go for it! Don’t wait around for a prolonged period of time and hope for that qualified buyer to walk in your door. I have found in the past few months many FSBO’s have had a lot of inquiries about Rent to own options. This sometimes is possible and works for the seller, but not often.
For Sale By OwnerThere are a lot of sellers trying to sell their homes today, that have the advertising power and exposure behind them because they are listed on the MLS with a Realtor. The majority of buyers begin their search on the internet, including FSBO sites, unfortunately the bulk of the current listings exist on the MLS. Once buyers begin their search they often pick a Realtor to help them, they do this because Realtors are free for buyers. Buyers do not have to pay a fee to work with a Realtor and often Realtors have the most qualified buyers.
Selling your home For Sale By Owner is difficult, but can be done. Give it a try and if you get frustrated interview Realtors and find the right one for you.