Considering trying to sell your home by yourself?
In the 1990’s, there began to be a big shift in the real estate industry. More and more people were using the method of “For Sale By Owner (FSBO)” to sell their homes, in the hope that they would be able to save on paying real estate commissions. In the past eight years, FSBO’s have been cut dramatically?
In an age of advanced technology, Why is that?
The simple answer is that people rarely understand what they are getting themselves into when they attempt to sell their property themselves. Very few sellers truly understand the intricacies of the financial, legal, and liability factors that go along with real estate sales, nor do they have the knowledge of how to handle and oversee the actual transaction process.
Before considering a FSBO, ask yourself:
Are you prepared to do the following?:
- Become an expert on your neighborhood and be able to impartially decide how much your home is really worth, when compared to others.
- Decide which home repairs will be the most profitable for your home sale.
- Stage your home in a manner that shows it in its best light.
- Follow the seller’s disclosure process, as stated by TREC. If you do not follow this process, you are opening yourself up to major lawsuits.
- Advertise your home in newspapers, magazines and on the internet. Be able to attract buyers through various mediums and be able to track each prospect.
- Be at home every time a potential buyer wants to view your property. This means interfering with your work, vacation, errand, leisure and personal schedule.
- Be able to detect which “buyers” may be unscrupulous or dishonest.
- Be able to appropriately protect yourself when writing up the sales contract. Not protecting yourself could cost you thousands of dollars or more. Furthermore, if you don't attach the appropriate addenda, based on the details of your sale, you risk being sued by the buyer.
- Be able to negotiate the option period, earnest money, survey expenses, closing costs, title fees, escrow agent, option fee, as well as many other negotiable and costly items.
- Be able to ensure that a “buyer” is financially qualified and able to close on your property.
- Follow all laws applicable to real estate. Not knowing the law will not work as a defense if you are sued.
- Making sure that the mortgage broker and title company has all of the correct documents. Not doing so, can cause a huge delay in closing.
- Pay a commission to the agent for the buyer. Most buyers have agents, and they will only show your home if you agree to pay them a commission.
These responsibilities, as well as others, are the major reason that only 11% of people that start out selling their property as a FSBO, actually sell the property themselves. The other 89% eventually turn to a Realtor® to sell their property.
Furthermore, a recent national study conducted by NAR, found that sellers that used a Realtor® brought in net sales proceeds that were 20% higher than sellers that used the FSBO method. Remember, the final sales price is only one of SEVERAL FACTORS that influence how much money you actually make on the sale of your home. A higher sales price does not necessarily mean more money in your pocket. You need someone that knows how to protect your best financial interests.
We hope that you'll consider using us for your real estate transaction. To learn more about what services we provide for home sellers, please visit: Why Use Us?
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Even if you are still considering trying to sell your property on your own, we would love to send you futher information on how we can help. We would be happy to assist you in any way that we can. Please fill out this no-obligation form, and someone will contact you very shortly, with the information that you have requested.
