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Attention: For Sale By Owners!
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. At first
glance, they feel selling a home is simple and why
should they pay a broker fees for something they could
do themselves? In fact, close to 25% of all the homes
sold last year were sold for sale by owner (FSBO).
However, close to half of the FSBOs said that they
would hire a professional next time they sold. Thirty
percent said they were unhappy with the results they
achieved by choosing FSBO. Why?
Many FSBOs told us that the time, paperwork and
everyday responsibilities involved were not worth the
amount of money they saved in commissions. For others,
the financial savings were even more disappointing. By
the time they figured the amount of fees paid to outside
consultants, inspectors, appraisers, title lawyers,
escrow and loan officers, marketing, advertising... they
would have been better off having paid the brokers
fee which would have included many of these charges up
front.
Selling a home requires an intimate understanding of the
real estate market. If the property is priced too high,
it will sit and develop a reputation for being a problem
property. If the property is priced too low, you will
cost yourself serious money. Some For Sale By Owner's 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.
Questions To Consider:
- Do I have the time, energy, know-how, and
ability to devote 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.
- Am I prepared to deal with an onslaught of
buyers who perceive FSBOs as targets for low
balling?
- One of the challenges of selling a home is
screening unqualified prospects and dealing with
lowballers. It often goes unnoticed... how much
time, effort and expertise it requires to spot these
people quickly. Settling for a lowball bid is
usually worse than paying broker commissions.
- Am I offering financing options to the buyer?
Am I prepared to answer questions about financing?
- One of the keys to selling, whether its a home,
a car... anything, is to have all the necessary
information 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, from lenders to title reps for
you to utilize...theyll be at your disposal.
- 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
states disclosure laws. Are you completely informed
of all the steps necessary to sell real estate? If
not, a professional would be a wise choice.
- 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.
- Have I contacted the necessary
professionals....title, inspector (home and pest),
attorney, and escrow company?
- Are you familiar with top inspectors and escrow
companies? Dont 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.
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