For Sale By Owner

3 TOP REASONS YOU NEED A REALTOR TO SELL YOUR HOME

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1. Getting the Price Right

When the National Association of Realtors® surveyed FSBOs (for sale by owner) about what challenges they faced when attempting to sell their homes without the aid of a real estate professional, 13 percent said that setting the right price was a key challenge.

What is the “right” price? A home should be priced at or very near its market value. Therein lies the challenge – how does a layperson determine a home’s current market value? The calculations require access to recent sales in the area, information about those homes, and information about the current real estate market in general.

Without access to the Multiple Listing Service (MLS), it is nearly impossible for anyone to gather info on all recent home sales in a given area. Although many websites claim to have this information, they are relying on public records, and most of the time they don’t have all of the information required to pinpoint market value.

Would you sell a used car without consulting the Kelley Blue Book, or something similar, to ascertain its worth? Without knowing the true market value of your home, setting a price for it is akin to throwing a dart – where it lands may or may not be the bulls-eye.

2. Getting the Word Out

One of the most important jobs of a listing agent is marketing the property. Once upon a time, all it took was an ad in the Sunday classifieds. Today, however, it requires a lot more work, and multiple marketing platforms – especially for homes with problems.

Homebuyers begin their search online, and that’s where real estate agents shine in their marketing efforts. They employ multiple strategies across multiple platforms – something a homeowner with no real estate or marketing experience may find challenging.

3. Getting a Handle on the Paperwork

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Understanding and completing paperwork is the one task of selling a home that stymied the largest number of FSBOs in the NAR survey. From the purchase agreement to how to deal with changes to disclosure requirements, the typical home sale requires a stack of legal contracts that few outside of the industry know anything about.

You will need to familiarize yourself with all contracts, reading and understanding every single line. Otherwise, when a buyer submits an offer to purchase, you may end up sitting there with a glazed look on your face and no idea how to decipher the pages in front of you.

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FSBO’s Must Be Ready to Negotiate

FSBO's Must Be Ready to Negotiate | Simplifying The Market

Now that the market has showed signs of recovery, some sellers may be tempted to try and sell their home on their own (FSBO) without using the services of a real estate professional.

Real estate agents are trained and experienced in negotiation. In most cases, the seller is not. The seller must realize their ability to negotiate will determine whether they can get the best deal for themselves and their family.

Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies which work for the buyer and will almost always find some problems with the house.
  • The termite company if there are challenges
  • The buyer’s lender if the structure of the mortgage requires the sellers’ participation
  • The appraiser if there is a question of value
  • The title company if there are challenges with certificates of occupancy (CO) or other permits
  • The town or municipality if you need to get the COs permits mentioned above
  • The buyer’s buyer in case there are challenges on the house your buyer is selling.
  • Your bank in the case of a short sale

National Association of Realtor Stats

As you can see, over the years Sellers are getting smart & doing less & less For Sale By Owner (FSBO).  They see the value of the professional Real Estate Agent who lists and sells homes for a living.

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For Sale By Owner (FSBO) Statistics – National Association of REALTORS®

  • FSBOs accounted for 9% of home sales in 2013.
  • The typical FSBO home sold for $184,000 compared to $230,000 for agent-assisted home sales. (thats 25% less)
  • FSBO methods used to market home:
    • Yard sign: 36%
    • Friends, relatives, or neighbors: 28%
    • Online classified advertisements: 16%
    • Open house: 14%
    • For-sale-by-owner websites: 13%
    • Social networking websites (e.g. Facebook, Twitter, etc.): 7%
    • Multiple Listing Service (MLS) website: 7%
    • Print newspaper advertisement: 7%
    • Direct mail (flyers, postcards, etc.): 1%
    • Video: 1%
    • Other: 2%
    • None: Did not actively market home: 32%
  • Most difficult tasks for FSBO sellers:
    • Understanding and performing paperwork: 18%
    • Getting the right price: 13%
    • Preparing/fixing up home for sale: 12%
    • Helping buyer obtain financing: 3%
    • Attracting potential buyers: 3%
    • Selling within the planned length of time: 7%
    • Having enough time to devote to all aspects of the sale: 6%
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Source: 2014 National Association of REALTORS® Profile of Home Buyers and Sellers

DANGERS of FSBO

Most buyers today work with a buyers’ agent to represent their interests. If you choose to sell your home on your own, you’ll be negotiating with a professional and relying on your own skill to finalize a contract. Do you know the contract like a professional whom works with them on a daily basis? Not only could you end up selling your home for less money, you could leave yourself open to potential legal problems unless you have the contract vetted by an experienced real estate attorney (which are paid by the hour). Sellers need to make sure they are being represented.

Bottom Line

The percentage of sellers who have hired a real estate agent to sell their home has increased steadily over the last 20 years. Meet with Triple Crown Realty-partnering with Keller Williams as we know the local market & see the difference we can make in easing the process.

5 Reasons You Shouldn’t For Sale By Owner

5 Reasons You Shouldn't For Sale By Owner | Keeping Current Matters

Some homeowners consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.

Here are five reasons:

1. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies which work for the buyer and will almost always find some problems with the house.
  • The appraiser if there is a question of value

2. Exposure to Prospective Purchasers

Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet

Where do buyers find the home they actually purchased?

  • 43% on the internet
  • 9% from a yard sign
  • 1% from newspaper

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult

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 FSBOing has dropped from 19% to 9% over the last 20+ years.

5. You Net More Money when Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $208,000 while the typical house sold by an agent sells for $235,000. This doesn’t mean that an agent can get $27,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.