Attention: For Sale
By Owners!
Why People Are
Afraid To Buy From
You!
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 25%
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.
Selling a home
requires an intimate
understanding of the
real estate market.
If the property is
priced too high, it
will sit and develop
a reputation for
being a problem
property. If the
property is priced
too low, you will
cost yourself
serious money. Some
FSBO’s discovered
that the lost money
as a result of poor
decisions outweighed
the commission.
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.
Questions To Consider:
- 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.
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