Things to consider when selling For Sale By Owner

Is It Really That Easy To Sell My Home For Sale By Owner?

Considering selling your home? You have two options: hiring a professional real estate agent or trying to go it alone and do it For Sale by Owner (FSBO). Over one third of sellers attempt the latter, though not many of them succeed without enlisting expert help. Research shows that only 11% of these FSBO sellers make it all the way through without a real estate professional.

          57 percent of sellers who believe that selling FSBO will save them money, 36 percent believe it will save them time, and 27 percent don’t hire an agent because they feel they know their home better than any agent could.

Still can't decide if you are ready to take on the ultimate Do It Yourself (DIY) project or hire a real estate professional? Consider FSBO if you do all of the following: 

• Prepare your own taxes

• Cut your own hair

• Change oil or fix your car

• Shingle your own home

• Repair plumbing or electrical issues

• Would represent yourself in a court of law

Contemplate the benefits of FSBO and hiring a professional.

What does for sale by owner mean?

When a homeowner attempts to sell their home without the guidance of a professional is called for sale by owner (FSBO). Going at it alone makes you responsible for the entire process, everything including

• Determining pricing

• Marketing

• Staging

• Showings

• Prequalification’s

• Contracts

• Negotiations

• Inspections

• Closing

Although the current sellers' real estate market is favorable for sellers, selling your own home can be a daunting, overwhelming, and stressful task. Moving is stressful enough without having to deal with all the other factors associated with selling. If you want to be worry free, hire a professional who can handle all the details while you focus on packing and moving.

 

Still considering selling on your own?  Here are a few reasons why sellers DYI: 

Benefits of for sale by owner

1. Avoid paying commission: Many people opt to FSBO in order to avoid paying out the commissions charged by agents, which are dependent on the whether or not the home is successfully sold. Generally, each party has their own agent, such that the commission fee is split between them upon closing. However, one must keep in mind that you too will need to pay in advance for marketing your property. Remember that part of the commission goes towards marketing your home and attracting a suitable buyer.

2. Control of the listing price: Without a professional agent, it is up to you to decide an appropriate list price. An agent can give you advice and a range from which to develop your pricing strategy based on your timeframe. The higher the asking price, the longer it may take to sell; as the cost lowers, expect quicker results. You should consider your home as an asset, disconnecting emotionally and objectively researching comparable properties in the area. For between $500-$1000, you can enlist an appraiser to accurately find its market value.

3. Managing showings and open houses: Keeping your home pristine around the clock and accommodating last-minute showings and all-day weekend open houses is a lot of work. When you’re the one running the show, you can decide when to show your home. You will also not have to wait for your agent to do a showing. You will also have to spend time showing your house to unqualified "buyers", possible theft or scouting out the house for possible robberies as well.

4. Feedback: Is it possible for you to be objective, not take a comment personally, and accept the potential buyers' views on your home? As an example, “we don’t like the layout”, “the carpet is too soft”, “the house is outdated”, “it would take a lot of work to update and paint”, and “the house is overpriced” and “I am working with an agent, will you pay me a commission?”

4. Are you motivated: You will spend time and energy protecting the bottom line when your finances are on the line. How do you market your home? Would a yard sign sell your home? Where would I get the most exposure to attract buyers to my home? To attract the next owner to your home, a professional takes care of all the marketing and professional photography, helping you showcase it in the most beautiful way.

5. Neighborhood expert you are: Because you have lived in this neighborhood you are able to talk to buyers about your home and the community. You have to decide how much information is too much information for the buyer.

NOTE: It can be challenging to put aside your emotions and attachment to your home when listing FSBO so that you can concentrate on the entire process. DIYers should know ahead of time what their bottom price is, if they will pay closing costs, and negotiate pricing with potential buyers to make negotiations easier.

 

 

The Value A Professional Brings To The Seller

Benefits of hiring a real estate agent                              

1. A Professional understands the market, pricing and fair market value: When working with an experienced, local agent, they will determine what your home is worth, strategic pricing analysis and how to attract buyers. Being strategic on pricing and marketing will net you the most money out of your house as possible, while still appealing to a wide range of buyers.

2. A Professional is objective: Having a strong understanding of the local market, things to do to show your home in the best light and the experience to get the job done is the value a Professional can do for you. Professionals should be networked with a team to get you home sold including photographers and home stagers who work to get your home sold highlighting the amenities your home has to offer a potential buyer.  

3. Professionals have access to all-encompassing market exposure: In order to get your home sold, Professionals need to be able to market to the market. Participating with the Fargo Moorhead Area Association of Realtors MLS as well as other MLS’s in the area (NorthStar for Detroit Lakes area which covers the State of MN and the Great North MLS which covers the State of North Dakota), online listing portals, social media presence, connections with other agents, and name recognition, your real estate agent can get a lot of eyes on your listing and plenty of potential buyers in the front door. National Association of Realtors says each agent has 10 buyers they are working with. In the Fargo area, with 1000 agents, that is a potential of 100,000 buyers seeing your home. Add North Star and Great North MLS's... Now that is exposure!

4. Professional Buyer’s agents are more likely to show your listing to clients: Commission is negotiated prior to listing your home and all agents work on a commission only. Therefore, Professional agents may not take the time to show your FSBO listing to their clients, since there’s no guaranteed commission.

5. Professionals Negotiate: An experienced agent will work with ready, willing and able buyers and help you determine the strongest offers, which eliminates the worry of calls and negotiations with less motivated tire-kicking shoppers. Contract negotiation is 1 of 3 items that affects your bottom line. “What is the best offer to take?” “Why should I consider one financing option over another? “Does my home qualify for that financing option?” Having an experience professional who is familiar with the selling process and the local market will be able to advise you on countering the offer, how to negotiate the seller concessions ask and get you to closing. Professionals work for you and in your best interest. No wonder 89% of sellers work with a professional and you should too!

6. Professionals know the paperwork: What documents do I need and where do I get them? That’s where a Professional comes in as there are many documents needed in the sale and purchase of real estate. Without a Professional, it’s your responsibility to make sure you have all of the paperwork needed, completed and accurate. A wrong notation on the contract could cost you thousands! Trained, Professional and Seasoned real estate agents are specialist at the purchase and sale process and all the terminology that comes with it.

NOTE: Hire an agent who understands YOU, your motivations, and your timeline. Communication is the key to starting and ending the real estate process satisfied and moving on to your next home. The commission negotiated at time of signing a listing agreement is paid out of your proceed check or equity at closing and it is important that you are pleased with the Professionals service. 

 

How about we co-market your home? 

Click Here to find out about co-marketing.