Sell Your Own Home?
(A continuation of How
to Sell a House)
By Steve Gillman - 2006
So you want to sell your own home. Your home will be a be
FSBO property. That's pronounced "fizz-bo," by the
way, and is short for "for sale by owner. It refers either
to a home sold that way, or the person selling it. This is your
lesson for the day on real estate lingo.
What is the number one reason that you might sell your own
home without the help of a good real estate agent? To save the
commission, of course. There are some who may just not like real
estate agents, but generally FSBO sellers are thinking they'll
get more money in the end.
My Number one FSBO Tip? Don't sell it yourself! It is possible
that your home will sell fast, and for as much as it would have
if listed with a real estate agent. This happens sometimes -
but not normally. Consider the following:
Buyers Work With Agents
Most buyers for single family homes look through MLS (Multiple
Listing Service) listings. If you sell it yourself, they won't
see or hear about your home. They may never even look in the
newspaper classified section, and if they do, will your ad be
there that day? How do you find that "right" buyer
or get top dollar when you're invisible to most of the market?
FSBOs Get Lower Offers
Naturally, the buyer thinks you'll take less when you sell
on your own. After all, you are saving the commission! Buyers
regularly look to FSBO as an opportunity to "get a deal."
Now, if you save a $10,000 commission, but get $10,000 less for
the house - where's the advantage in that?
Advertising Is Expensive
The advertising costs the real estate office normally pays
are yours if you sell it yourself. How much could you spend on
ads if it takes a a year to sell? And will the first $500 you
spend actually buy as much exposure as the first two week in
the MLS listings - where most buyers are looking. By the way,
do you know how to write a great ad?
You Lack The Resources
Real estate agents have information on sold properties to
look at, for example, to determine the best price for your home.
They have the "offer to purchase" forms at hand, and
other necessary paperwork. You can dig through county records
for sold prices, and you can find the forms you need and learn
how to use them, but you do have to value your time too, right?
You May Not Know The Market
What's the target market for your house? Young couples without
children, families, retirees? What features do they expect in
a house? You should know these things before you write your ads.
An experienced real estate salesperson will know.
But that's not the end of the reasons to reconsider a decision
to sell your own home without help. Read on...
The book continues here: Selling
a Home Yourself - More reasons to reconsider going it alone.