THINGS TO CONSIDER BEFORE DOING FOR SALE BY OWNER (FSBO)
For Sale By Owner (FSBO) Statistics
FSBOs accounted for 8% of home sales in 2014. The typical FSBO home sold for $210,000 compared to $249,000 for agent-assisted home sales. That’s 16% Less.
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory
- FSBO methods used to market home:
- Yard sign: 42%
- Friends, relatives, or neighbors: 32%
- Online classified advertisements: 14%
- Open house: 14%
- For-sale-by-owner websites: 15%
- Social networking websites (e.g. Facebook, Twitter, etc.): 15%
- Multiple Listing Service (MLS) website: 10% (Free with Us)
- Print newspaper advertisement: 3%
- Direct mail (flyers, postcards, etc.): 3%
- Video: 2%
- Other: 1%
- None: Did not actively market home: 25%
- Most difficult tasks for FSBO sellers:
- Understanding and performing paperwork: 12%
(this is where you can lose money and put yourself at risk)
- Getting the right price: 6%
- Preparing/fixing up home for sale: 6%
- Selling within the planned length of time: 18%
- Having enough time to devote to all aspects of the sale: 6%
(followup on leads, qualifying buyers, showings, scheduling inspections, appraiser, contingencies, escrow, etc.)
- Understanding and performing paperwork: 12%
We are intimately familiar with all the local and state laws that govern residential transactions in your area. This is not a small thing – making mistakes in preparing paperwork, researching encumbrances, drafting contracts, understanding contingencies, CCRs, and complying with disclosure laws on everything from mold to lead paint can cost you thousands — and can even kill a sale.
Negative Incentive for Buyers
The fact is, there are buyers’ agents out there who avoid showing FSBO homes to their clients simply because they know that, without a seller’s agent involved in the deal, it’s going to be more work for him or her. Many agents have been burned by having to deal with FSBO sellers who are amateurish, unprofessional and unrealistic. And remember, even if a buyer’s agent does want to work with you on a FSBO deal, he or she is working for his client – the buyer – not for you.
In hot or not-so-hot real estate markets alike, selling your home is a full-time job, and most sellers already have a job! When you engage us, we are fully invested in selling your home – 24/7 – to a degree that, with most sellers’ personal and career obligations, they never can be. As a FSBO seller, you’re on-call around-the-clock. On top of that, we can be objective about your house in a way that, as the owner, you can’t be – helping to point out flaws that can be corrected, advising you how best to stage your home, etc.
What Tasks Are Involved in Selling a Home?
The closer you look, the more little tasks are revealed as crucial in preparing, marketing, and successfully selling your home. The most important tasks that we will normally perform for you include:
- evaluating the local market and comparable home values
- suggesting an appropriate listing price
- advising you on how best to present your home, including providing referrals to painters, repair persons, and more
- helping coordinate preparation of disclosure and other needed forms and documents
- creating advertising materials and arranging for photographs (interior and exterior, hopefully done by a professional) and possibly an exterior drawing of your home
- placing ads on the Multiple Listing Service (MLS) and in other media, to potentially interested buyers and agent’s
- arranging for individual visits to the property — if you’re no longer living there, by providing a secure electronic lockbox for use by other realtors, and meeting with individuals who don’t yet have their own agent
- answering questions and providing documents such as disclosure packets to potentially interested buyers and their agents
- holding one or more open houses, possibly including weekday open houses for other real estate brokers to visit and weekend open houses for the public (which itself involves many tasks, such as arranging for and putting out signs in advance, and providing food for the broker’s open houses, as is traditional in some areas)
- receiving offers to buy your house, whether via email/mail or in person if other agents wish to formally present their offers
- helping you evaluate the strength of each offer and strategize on issues like whether to accept or reject an offer outright or make a counteroffer, and whether to also look for or arrange a backup offer.
- negotiate with the buyer’s agent until the purchase contract is complete
- coordinate with the buyer’s agent throughout the escrow period, helping to make the house available for inspections and appraisals and make sure you’re doing your part to stay in contract and close the deal
- help you strategize over requests made while in escrow, such as for a reduction in purchase price due to repair issues revealed in the inspection, and negotiating such issues with the buyer’s agent
Before you decide to take on the challenges of selling your house on your own,
contact us, we offer Full Service Listing at 3%, doing all the work for the same price as trying to sell your home yourself, think about it, same price, we do all the work… Contact us and discuss your options