For Sale By Owner: Is FSBO the right choice for you?
Posted by 
Al Filippone Associates on Thursday, May 21, 2009
With the current economy and lower home prices it is tempting to think about saving the money you would spend on a real estate commission. The current housing market is “inventory-heavy”. Selling your home in a buyer’s market can be a challenge even for a seasoned Realtor so before you make the decision to try For Sale By Owner (FSBO) be honest with yourself about the time, cost and risk involved and make sure you are ready to make that commitment.
Without the proper information, FSBO sellers leave themselves open to many serious realestate issues. To best avoid home equity loss, unnecessary repairs, fines and avoidable fees, loss of quality buyers, and the most serious, lawsuits, theft, and threats to personal safety…
Follow these steps if you decide to go FSBO:
Price it right: In order to pocket that real estate commission, you need to actually sell your home. Pricing is key and again in this market, more challenging. Make sure you sure you research recent sales both online and at your town hall. Do our best to look at your come objectively in order to choose the right comparables.
Show it often and in it’s best light: Stage your house to look like a model home. Box up the clutter and collectibles. Maximize your space by strategically arranging furnishings. Remove what you can live without. Make all necessary repairs. Be available to show your home as often as possible. Potential buyers may call with little or no notice to see your home. Turning down showings is turning down opportunities to sell.
Know the facts: Consult your town building and planning and zoning departments. Know what can and can’t be done to your property and home. Some buyers may only be interested if they can tweak the house to make it suit their needs. Consult a real estate attorney to make sure you are complying with all real estate and advertising laws. Provide all necessary disclosure forms to potential buyers.
Be safe: Interview potential buyers on the phone before allowing them into your home. Review pre-approval letters only from reputable brokers or banks. Run an online background check to ensure you are not opening your home to someone with ulterior motives. When speaking with potential buyers, only share information regarding the home. Avoid discussing your reason for selling, where you will be moving, etc.
In conclusion: Considering the skill and time involved to effectively market a home, it’s easy to understand how a professional realtor earns their commission. Realtors have experience, training and many resources. They are motivated to obtain the highest price for your home and to see it through closing. So consider your time and your confidence in self representation. Errors due to inexperience can be costly.
As a real estate professional, I’d be remiss if I didn’t mention that according to the National Association of Realtors, “for sale by owner” homes sell on average for 17% less than agent assisted sales. 12% of annual home sales are sold directly by the owners. 7% of those were private sales where the owner previously knew the buyer. 5% successfully procured a buyer and closed.
*Statistics from the National Association of Realtors
Related articles:
- The Three Reasons Houses Don’t Sell
- Home Staging: Sell Your Home Faster for a Higher Price
- Tips for Choosing the Most Qualified Realtor
- Loose Lips Squander Home Equity
- Economists’ Commentary: Home Sellers Seeking Professional Representation Rising
