I understand why people want to try to sell their home “for sale by owner,” everyone likes to save a buck or two by not paying a commission but selling a home is not as easy as you think. The average person sells a home every 7 years so it’s not something you do every day, but if you are determined to try it, here are a few of the things you have to consider when selling on your own.
1. Setting the price is the first step in a long list of things to do. How do you determine your list price? Pricing to me is a little bit of an art, science and intuition. Knowing if it’s a buyer’s market or seller’s market helps in determining your price. What comparable properties are you using and where are you getting your data? The most accurate data you can get is from the local MLS and only Realtors have access to that. If you’re using Zillow, beware that the data is not always correct.
2. Alright so you set your price and now you are ready to market it. Most buyers start their home search on the internet. What websites are you going to list your home on? Most Realtors market your listings to get maximum exposure using the mls and something called syndication through listhub where your home gets listed on hundreds of websites. As a FSBO, there are only a few good sites where you can get any exposure.
3. Getting a qualified buyer is something else you have to think about. First off, how do you know someone is really qualified to buy? How do you keep away the looky lou’s? You don’t want just anyone walking through your home, do you? You should make sure the buyer is working with a qualified lender.
4. The home inspection has been done and the buyer is asking for repairs, do you do the repairs, just a few, do you reduce the price in lieu of repairs, these are all things to think about.
5. Low appraisal value can cause problems if the home is being financed and the appraisal does not come in at the contract price. Your buyer may not be able to get the loan. This goes back to pricing it right.
6. The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people selling “For Sale By Owner” has dropped from 19% to 9% over the last 20+ years.
Before you decide to take on the challenges of selling your house on your own, I’d be happy to sit down with you and explain what I have to offer. If after our meeting you still want to try selling on your own, I can provide you with my FSBO kit to help you get started which includes professional signage, lender information and much more…. There is no obligation and you will not pay a commission if you find your own buyer.