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Many homeowners believe that to maximize
their profit on a 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 9% 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 that 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 having paid the broker’s fee
which would have included many of these
charges up front.
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.
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. It often goes unnoticed...
how much time, effort and expertise it
requires to spot these people quickly.
Settling for a lowball bid is usually worse
than paying broker commissions.
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
quickly 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
possibly even cost you the transaction. |
FSBO Links
Questions to Consider
FSBO Friend How To
Open House Register
Safety Tips
Open House Tips
Legal Issues
Statistics
Misconceptions
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