Cookie McCullough - Northern Michigan Real Estate - Traverse City Real Estate

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FOR SALE BY OWNER TIP – JUST DON’T DO IT!!

FOR SALE BY OWNER TIP – Just Don’t Do It!!

Selling a home by yourself can be full of pitfalls. If you aren’t savvy in the real estate industry, get ready for a potentially dangerous fall. It takes more than an ad in a newspaper, a sign in your yard, or even networking through your friends. There is a truckload of research to do if you expect to get a quick sale and hoped for price.

For Sale By Owner (FSBO) on the surface seems like an attractive strategy with what looks like an obvious savings by not paying professional realtors’ commissions. However, missteps in pricing, negotiating, possibly a slower sale, even lawsuits later on, can actually cost you a lot more in the long run. Or, for that matter, will anyone look at your home if there is no confidence in your ability to navigate the complexities of the sale?

My number one FSOB Tip – DON’T SELL IT YOURSELF! Consider the following ten points before considering a FSOB.

1. Buyers work with agents. Most look at MLS listings. Attempt to sell it yourself and buyers won’t see or hear about your home. How do you find that “perfect” buyer or get top dollar when you’re invisible to most of the market?

2. Your FSBO will get lower offers. Naturally, the buyer thinks you’ll take less because you’re saving the commission. Save a $10,000 commission, get $10,000 less – where’s the advantage?

3. Advertising is expensive. The costs the real estate office normally pays for advertising will be yours if you sell it yourself. How much could you spend on ads if it takes a year to sell your home?

4. Do you know the fair market value of your home? Over and under pricing are common mistakes with FSOB sellers. Agents have the resources – you don’t! Agents have data of sold properties readily available for research in order to determine the best price for your home. You can dig through county records for past sales, but what is the value of your time to do all the research?

5. An experienced Realtor® will know the target market for your home – young couples, retirees, second home buyers, etc. What features do they want? You should know these things before you write your ads so you know the points that will trigger potential buyers.

6. Agents know the laws. What about written disclosures – who pays for the real estate transfer tax? Selling your home yourself does not mean that you can ignore the laws.

7. Are you a good salesperson? Can you develop rapport and properly answer objections to your home? Could your defensiveness scare off a buyer who criticizes your home? Think back on your own purchases – you will realize that a respected professional makes a difference.

8. Paperwork. Are you ready to find your own Title Company, lender, and appraiser? Will you be able to help the buyer properly fill out the purchase agreement as would an experienced agent? Do you have all the other closing documents that are needed? If the buyer is putting the home in a trust, do you have the proper paperwork? A professional realtor has companies they work closely with and sometimes, when needed, attorneys.

9. Agents negotiate for you. Will you be able to counter-offer without scaring off a buyer? A good agent is trained in these skills. When was the last time you learned a new negotiating technique – if ever?

10. You may not save anything by attempting to sell by owner. The documents, newspaper advertising, yard signs – are all your expense when you sell it yourself. After all your hard work, you may get low offers and negotiate poorly. Frankly, sellers usually net less money from the sale when they try to save the commission.

Most “FSOB” sellers eventually turn to a real estate agent for help. It would be very difficult to learn all the things an agent will do for you – but if you could, is it worth it to spend all that time with the very strong possibility of not saving any money? DON’T SELL IT YOURSELF – unless you really know what you are doing. That is my number one FSOB tip!!