5 Things to consider when thinking about selling your home For Sale By Owner
Sometimes people ask themselves why they should pay such a large amount of money to a real estate agent “just for putting out signs and walking a few people through their house”. So they decide they will take the task upon themselves and save some cash. But it is very easy to underestimate the risk of making less money, the cost of the frustration and emotions that come with the process, and just how much they will gain by having the experience of a real estate agent on their side. If you are considering selling your home at Lake of the Ozarks by yourself, here are some common challenges sellers encounter, and what you can do to make your transaction more successful.
1) Marketing Strategy.
A real estate agent will bring an entire marketing plan as the strategy for selling your home including professional signage, information sheets, and access to the MLS. If you plan on selling your home on your own, you will want to look at it as your full time job for that time period. Response time is everything, especially in a quick paced market and some buyers will only be only be able to look during business hours, others only evenings and weekends. So your schedule has to be open for that. Another couple things that make a huge difference are professional photography for your listing, and having your home clean and staged for viewing.
2) Risk.
It is important to be cautious
when bringing people into your home. You
do not want to take the risk of being there by yourself with someone you don’t
know, so have some other people there with you as well. It is a good idea to
lock up any valuables and medications as well.
Checking people’s ID before they come to your home is smart too, that
way you can do a quick online search.
Even if it is a real estate agent offering to show the property it is
good to have them text you their business card and license number so you can
confirm they are legit.
3) Experience.
Understanding the real estate sales process is a huge asset. If you are selling your home at Lake of the Ozarks by yourself, you will want to enlist a real estate attorney to help you with your paperwork. That way you know you have a properly written purchase agreement ahead of time. Because the price is only one part of the offer, you must also consider inspections, contingencies, timing, etc. Real estate agents also usually require that the buyer be pre-qualified by his/her bank so you don’t get to the day of closing and find out the buyer doesn’t not have the funds. You will want to do that, too. A realtor would normally bring knowledge of what properties are selling for in the market to help you avoid pricing your property to high or too low. It is a good idea to hire an appraiser for pricing your home on your own, and it also helps you justify your asking price to buyers. Finally, you want to be accurate about disclosures so you aren’t at risk for liability if the buyer discovers issues after the home has sold.
4) Emotion.
Everyone knows that real estate
transactions can become very emotional for one or both parties. Creating an atmosphere where buyers are
comfortable enough to voice concerns like dirty carpets or shabby fixtures,
allows things to be discussed and worked through. This can be awkward, but necessary. Being an assertive negotiator is also
necessary, and must be done with cool emotions, even if the transaction is
sentimental to you personally. (That may be why only about 10% of FSBO sellers
actually get through the transaction without the help of a real estate agent.)
5) Cost.
Most often, the incentive to sell a house FSBO is to save money on the real estate agent’s commission. But many people don’t realize the seller is responsible for paying the commission for the buyer’s agent. Those who refuse to do so really miss out on a lot of buyers because most buyers are not comfortable going through the process without representation. Even with a buyer’s commission, the real estate agent may fear having to do twice the work since there is no seller’s agent, and worrying about being asked to negotiate on his commission anyway. It is actually recommended to point out clearly that you WILL pay a buyers commission and if possible to add a bonus as well so as not to scare off buyers or agents as a FSBO. Unfortunately, in the end, data shows that the sales price of similar homes average 15% less with FSBOs compared to homes sold by a Realtor.
That is not to say that FSBOs cannot be done successfully. But there is a lot to consider in a real estate transaction. The perceived savings could end up being a trade-off, especially if you still end up hiring an appraiser, photographer, stager, and real estate attorney to handle it on your own. It can also have a heavy toll on everyone’s emotions, so be prepared to take extra care to keep yourself upbeat. We hope this information helps you through and makes the experience the best it can be for you. If you find that it becomes too much or not as profitable as you had hoped, Your Favorite Real Estate Team truly understands. We are here and ready to help you sell your home at Lake of the Ozarks, if and when you choose. Give us a call anytime at (573) 552-8177!
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