For Sale By Owner (FSBO): Consider the Facts and the How To’s

Do you have all the facts when considering For Sale By Owner?  I discuss this here:

1. PRICE: Do I have sufficient knowledge and accurate information to price my property correctly so as not to defeat a sale?

2. MARKETING:  Do I know all that is involved in marketing my property in and around the Nashville, Tennessee area, and do I have access to all the resources needed, including internet marketing? Am I knowledgeable on the current market conditions? Do I understand “Fair Market Value” as apposed to “Appraised Value”?

3. POTENTIAL LOSSES:  Every time I leave my property I am actually taking it off the market and losing potential buyers.

4. IMPROVEMENTS: Do I know which repair is a waste of money and time and which are necessary in order to get top dollar? Do I know if my house will meet strict FHA or VA financing standards?

5. BUYERS:   Will buyers confide in me what they really want? Do I know how to distinguish between shoppers and legitimate buyers? Will prospective buyers reveal to me their true financial condition so I can qualify them?

6. SAFETY:   Because my sign is an open invitation to all, and because I can’t know the motives of the prospect, am I willing to have a stream of strangers in my home?

7. NEGOTIATE:   Do I know what objections a prospect may make so I will know how to answer? Can I negotiate discretely so as to protect my interest yet not lose a buyer? Do I know how to follow up to avoid appearing anxious?

8. LEGAL: Can I negotiate or write a valid contract? Do I know how to protect myself if the buyer also has a home to sell? Or, do I know a real estate attorney who will have the time to write the contract when it is convenient for the buyer? Will the buyer be satisfied with my attorney or will complications arise when they want to be protected by their own attorney? Am I aware of the Tennessee Property Disclosure Law and the Federal Lead Based Paint Disclosure Law? Am I knowledgeable about mold and fungus issues?

9. FINANCING:   Do I have a prepayment penalty? If so, how can I avoid having to pay it. Should I consider points or buyer’s closing costs? If so where would be the best place to send the buyer to get the lowest rate?

10. EXPENSE:   If selling owners statistically show their property 47 times and if the average showing time is 35 minutes, do I have the time? More importantly, what is my time worth? Do I know what to add to cover advertising, closing costs and so forth?

11. HOME SELLING SECURITY TIPS FOR THE FOR SALE BY OWNER

For your own safety never set an appointment with anyone to see your home unless they have given you their name and number and you have called back to verify that number. An easy way to do this is to say, “Let me check with my husband/wife for the best time and I will call you back.” Even if you are not married.

Never let potential buyers know your schedule. Don’t ever tell them when you won’t be at home, when your spouse won’t be home, when you pick up the kids, when you work, when you will be on vacation, etc.

Never give a caller information about your home’s security such as deadlock bolts, security systems, and so forth.

Always have a back-up plan when you allow strangers into your home, especially if you have children. Have a neighbor look out for you until the lookers have gone.

Never let a stranger into your house without seeing some identification. If the person says he/she is a real estate agent, ask for a card then call his/her office to verify the information if you don’t recognize the person.

Keep a log of everyone who’s looked at your house. Get their name, telephone number, address, car description, tag number, and any additional information that could be helpful in the event of a future burglary. All of these people would be suspects.

If you make a flyer to advertise your home, don’t include any information that might breech security.

Remove from sight all valuables including guns, jewelry, silverware, and collections. Recently there was an incident in South Florida where a couple was going around with someone calling themselves a real estate agent and stealing things from the houses they visited. The couple actually stole over $150,000 worth of valuables. We screen all potential buyers through a thorough pre-qualification process before we let anyone into a listed home.

Never leave strangers alone and watch their every move while they’re in your home.
One of the latest scams, according to Real Estate Today magazine involves prescription drugs. A nice looking, clean-cut couple will make an appointment to view your house. When they get inside, one of them will ask to use the bathroom and will search for prescription drugs while in there. There is a huge market for such drugs especially since the new drug Viagra hit the market. So make sure your prescription drugs are well hidden before anyone looks at your home.
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Surveys conducted by the National Association of Realtors show that the number of people attempting to sell a house on their own is dropping.

A second NAR study found that one out of every four FSBO sales ended up going back to an agent or broker. The number would have been higher, but the survey also found that one-third of the successful FSBO sales happened only because of a relationship between the buyer and seller.

Some 18 percent of the FSBO sales were sold directly to a friend or neighbor and another 7 percent were sold to family members. Another 13 percent came from direct contact between the buyer and seller.

“Is it possible to sell a house without an agent? Sure, it is,” said Walter Molony, National Association of Realtors spokesman. “But who is going to walk through all the legal requirements and mandated disclosures? And who is going to be the third party to all the emotional details?”

NAR also found that only 32 percent of those people who sold a house by themselves would do it again. “That means that roughly seven out of every 10 FSBO’s won’t go down that route again.”, said Keven Roth, NAR senior economist. “There is a lot more to selling your house than just putting a for sale sign in the front yard.”

Minding the details: Molony said having an agent negotiate the way through the myriad of legal requirements is well worth the commission.

Trying to do it on your own means you do miss a lot. Just as an example, you miss the possibility of out-of-town contacts.
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Attitudes
A. If we can’t sell it ourselves, we can turn it over to a Realtor®
B. Have to net X number of dollars
C. Can’t afford to pay the brokerage fee

Myth:

“If I sell my house myself, I will save thousands of dollars.”

Fact:

Realtors® will generally sell houses for 5-8% more than the FSBO owners themselves.

If your goal is to net the most money, let me show you how I can market and sell your house for TOP DOLLAR!