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 9% of all the homes sold last year were 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 FSBO. Why?

Many FSBO’s 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 and advertising, they would have been better off having paid the broker’s 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 FSBO’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 FSBO’s as targets for low balling or just aren’t serious (lookie-loos)?
One of the challenges of selling a home is screening unqualified 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.

Am I offering financing options to the buyer?
Am I prepared to answer questions about financing?

One of the keys to selling, whether it’s 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; they’ll be at your disposal.

Do I fully understand the legal procedures, consequences 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? Do you have all of the legally-required forms and know how to fill them in properly?  Are you prepared for legal consequences if you do not do things exactly as they are supposed to be done?  If not, a professional would be a wise choice.

Do I have any sort of insurance that will protect me from lawsuits because I handled my home sale myself?
Homeowner insurance does not cover you for this type of legal action.  You would be well advised to see if you can take out a policy for this specific transaction…if you can find an insurance company that would be willing to cover you.
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?
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.

Am I ready to have random strangers walk through my family’s home, at all hours of the day and night, without knowing who they are or what their motives are, and showing them everything inside the house?
SECURITY is a very real and present concern to Real estate agents and brokers.  We have all spent days in training about SECURITY.  Many agents and brokers are assaulted every year, and we take precautions!  We meet buyers at our offices, ask for ID, photocopy it and let others know we’re going out, take license plates, etc.  Can you do this as a seller?

I sincerely hope these tips and ideas are of value to you. I have prepared a 23 page report just for the Unrepresented Seller (FSBO).
 

Click on the book below to INSTANTLY receive a copy!  No obligation, no sign-ups, no registration, no fooling!
 

For Sale By Owner 101
 

PLUS: Click on link below for more great information

Private Sellers: Over 15 Great Reports For Private Sellers

When you’re ready, come back and fill in the information below to let me know that you’re ready to get started.

Sound simple?

It is.  It should be.  It will be.

Sincerely,

Jonathan Phillips