ATTENTION: FOR
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. It is common for people to think that selling a home is a simple task, one which shouldn’t require paying broker fees, when they could just do it all themselves. Approximately 13% of all the homes sold are 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 to sell on their own. Why is that? Many FSBO’s admitted that the time, paperwork and everyday responsibilities involved were not worth the amount of money they saved in commissions.
And for others, the financial savings were even more disappointing. When they added up the amount of fees paid to outside consultants, inspectors, appraisers, lawyers, advertising and marketing, they felt they would have been money ahead by paying the broker’s fee, which would have included many of these charges.
Selling a home requires an intimate understanding of the real estate market. If the property is priced incorrectly, it can prove disastrous! Price it too high and it will sit and develop a reputation for being a problem property. If it is priced too low, it will cost you some serious money!
Another problem is how to market your home. Drive-by traffic will surely see your signs, but what is the likelihood that they will be interested or know of someone who might be interested? Advertising in the newspaper is a pricey tactic and most buyers aren’t looking for their future home in the small, individual ads in their newspaper.
Some people who sold their house themselves 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. Ask yourself:
1) Do I have the time, energy, know-how, and ability to devote to 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.
2) 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
qualified prospects and dealing with low-ballers. It often goes
unnoticed how much time, effort and expertise it requires to
spot these people quickly. Settling for a low-ball bid is
usually worse than paying broker commissions.
3) Am I offering financing options to the buyer?
4) Am I prepared to answer questions about financing?
One of the keys to selling, whether it is a home, a car, or
anything, is to have all the necessary information that 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, all
at your disposal, from lenders to title reps to escrow
companies.
5) 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 state’s disclosure laws. Are you completely informed of all the steps necessary to sell real estate? If not, a professional would be a wise choice.
6) 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.
7) Have I contacted the necessary professionals….title, inspector (home and pest,) attorney and escrow company?
8) Am I 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. If these questions raise some concerns, you may want to speak with a professional.
9) Will I screen people before I let them enter my home?
In this day and age of high crime, drug use and mental illness, are you completely comfortable with who you open your door to and allow entrance to your house? Is it really a potential buyer, or rather someone who has evil intentions toward your possessions or your family members.
I certainly hope that these tips and thoughts are of value to you. If there is anything I can do to help, please call me at (425)890-0124.
I would consider it a privilege to be of service to you! If you would like a FREE consultation, just let me know.
