11 things to consider before you go FSBO
Do You Know How to Really Qualify A Buyer?
If you’re acting as your own sales agent, how do you decide who’s a legitimate buyer and who’s just going to be wasting your time? Seller’s agents have the necessary experience to determine whether a buyer is properly pre-qualified with a reputable lender and continue to follow up to ensure they can actually close the deal. Do they have a home to sell in order to buy and would you know how to determine the likelihood of that falling through?
They Can't Buy It if They Can't See It
One thing you might not be taking into account as a potential DIY home seller is just how available you’ll need to be in order to show your home. Are you really going to be able to call in sick or cancel your plans every time someone wants to look at your home? Qualified potential buyers aren’t going to want to work around your convenience - your home isn't the only one of the market and making them jump through a bunch of hoops isn't likely to lead you to the highest price.
Selling isn't the same thing as marketing
It's not secret home searches start online. Putting your home "up for sale" on MLS with a fee-based isn't enough. Do you know how to properly prepare a home to appeal to as many buyers as possible? Do you know how to remove buyers potential objections and help buyers imagine themselves in your home? Even if you decide to spend money on a photographer, would you know who to use or how to properly order them online to help gain maximize views?
Don't talk to Strangers
Okay, so you’re internet-savvy, you know all about how to put your home out there to your sphere. But (and it’s a really big but) – are you ready to qualify, introduce strangers into your home. Do you know what to say and what not to say to set them at ease and make them pictures themselves there. We've shown houses with a seller stays in the home and we can assure you, it's uncomfortable for everyone. Not the best way to set the stage to get maximum profit.
You Don’t Want to Waste Your Time with Bargain Hunters
What’s more, FSBO homes are more likely to appeal to the type of buyer who’s out for a rock-bottom bargain-basement deal and may even go so far as to want you to give them a cut of the commission you’re saving by foregoing a Realtor’s services.
Drowning in Paperwork
In case you’re not already getting the picture, selling a home is pretty hard work! Not only do you have to find and vet potential buyers, but once you’ve found that buyer, then the real headaches begin. Every detail must be attended to in order to make the sale go through…and what’s more, if you neglect something crucial like a mandatory disclosure or inspection report, you may find yourself facing not just the loss of the sale, but also potentially serious legal repercussions.
Avoiding the Open Market Doesn’t Help you Capitalize On It
Real estate boiled down is a marketing business to capitalize on supply and demand in an industry where every product sold is unique. Every home has pros and cons that are different than the others that are on the market, or have sold recently. Having experience and in depth knowledge of how buyers are submitting their offers, which homes are seeing multiple offers and more gives Realtors the upper hand when it comes to preparing a home to capitalize on the market.
Have You Priced It Right? Are You Actually Leaving Money On The Table?
While “location, location, location” might be the home buyer’s mantra, as a home seller, that’s one variable you really can’t change. Instead, the key factor to selling your home in a reasonable amount of time is pricing it correctly, which isn’t nearly as easy to do as you might think. Sure, you can go online and see what nearby homes have sold for, but are you really comparing apples to apples here? An experienced Realtor will be able to perform a detailed market analysis which not only takes into account your home’s condition and any improvements you might have made, but can generate an up-to-the-minute temperature reading of just how hot (or not) your local market really is.
Would you represent yourself in court?
We know, it's not the same thing as heading into court (although sometimes that is more true than others). That being said, most qualified buyers will have a buyers agent representing them that will be showing other properties that have an advertised cooperating commission from 2.4-3%. Not offering this will narrow your buyer pool significantly. If you do work with a buyer agent, you'll be representing yourself against someone who does this day in and day out. Will you really know how to protect yourself along the way?
Duty to perform
Did you know our contract obligates a seller to sell to a buyer once they are under contract? Yep. You would have a duty to perform. After all there is only 1 house exactly like yours. Did you know that buyers can back out for any reason or no reason at all? Yep. That's true too. Once you are under contract, you might be tempted to think the hard part is over. Those of us in the business of doing this day in and day out know that is just when we roll up our sleeves and get to work. Repair negotiations, appraisers, inspectors and so much more. You might feel like crying UNCLE but it will be too late for a professional to step in and your oversights or mistakes could wind up costing you thousands more than simply hiring a professional in the first place.
In Fact, You Might Make More Money with a Realtor
And the survey says…bottom line, the average FSBO home last year sold for $208,700 while the average agent-assisted home sale was $235,000. This means that an agent-assisted home sale can net you an 11% larger profit. Assuming you paid a 6% agent commission split between the agents on a $235,000 home, or $14,100 you'll still be way ahead than if you tried to sell it on your own for less and statistically, FSBO's sell for less. We pay for ourselves by properly pricing a home, strategic marketing to appeal to the broadest array of buyers and strong negotiations to help protect you along the way.
If you’re willing to put up with all the headaches of listing, selling, and closing on a home, and you don’t mind settling for what may well be a lower price, then an FSBO sale may be for you. If, on the other hand, this all sounds like too much work for too little payoff, you’re in good company. It seems that, according to a North Carolina Real Estate News article, over 80% of all FSBO sellers eventually wind up choosing to sell their homes by using an agent instead. If you’d like to skip the headache and proceed straight to the happy ending, Core Realty Advisors is here to help.
You are at the Core of all we do! Contact us today to get started!