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ATTENTION: FOR SALE BY OWNERS! WHY PEOPLE ARE AFRAID TO BUY
FROM YOU!
Compliments of: Linda Christianson
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 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,
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?
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 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
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? 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.
Ext. # 5078
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