by Dan Krell © 2009
www.DanKrell.com
What do FSBOs know that we don’t?
Whether I drive by a “for sale by owner” sign or I come across an ad while perusing the Sunday real estate section, I often think that FSBOs (For Sale By Owner) are brave for going it alone. Is there something FSBOs know that others don’t?
Being a successful FSBO means taking your home sale seriously. Would you hire a part time real estate agent who is not genuine in marketing and showing your home? Probably not. Then why go half-way when doing it yourself? Having a serious attitude means doing the research, making a plan, and following through.
Research will help you avoid one of the biggest mistakes FSBOs make – pricing the home. If your home is not priced correctly, you’ll not only price yourself out of the market; but you’ll also waste valuable time. Therefore, using accurate and up to date neighborhood information is critical.
Online home sale resources, such as Zillow, Trulia, and tax records are helpful, however you may find that the information is not always accurate and does not tell the whole story. You can get valuable and up to date neighborhood sales information from local Realtors. Although not all Realtors may be open to helping you sell FSBO, some will! Don’t be afraid to explain that you are planning to sell FSBO and you would like a CMA for your home. Also, ask for their opinion and rationale for a list price.
Selling a home is much more than putting a sign in the yard. Having a marketing plan, even a basic one, can make a big difference in attracting home buyers. Write down the classified ads you plan to use, as well as where and when you will place them. Online ads should also be planned in advance; you will find that articulating an honest and exciting description of your home isn’t always easy.
Having an open house depends on your comfort level of having strangers traipsing through your home. When you consult a Realtor for a CMA, you might ask about open house information. You might want to consult with local police about open house safety.
Don’t forget the benefits of selling FSBO; well, there’s one major benefit- not paying a Realtor commission. But according to the 2003 National Association of Realtors Profile of Buyers and Sellers, FSBO sales net less for sellers compared to homes sold by agents. The profile reported that FSBO sales averaged $145,000 while real estate agent sales averaged $175,000 – giving the seller an average net of $19,500 more on the agent sale after a 6% commission (realtor.org).
Selling your home FSBO can have successful results; a FSBO sale can be a rewarding experience if well planned and handled properly. But before you decide to take on the sale on your own, do yourself a favor and visit a few FSBOs to get feedback about their experiences. You might find out that listing and selling real estate is not as easy as it seems; “they” will not come just because there is an ad in the paper or an internet listing; “they” will not buy at any price; “they” will not buy in any condition; “they” are not all qualified; and “they” will not always show up to settlement.
This column is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of July 13, 2009. Copyright © 2009 Dan Krell.