FSBO Tip - Just Don't
Do It
My Number one FSBO Tip? Don't sell it
yourself! A "FSBO," or house "for sale by owner" can
sell fast, and for as much as it would have if listed
with a real estate agent. Sometimes - but not normally.
Consider the following ten points.
1. Buyers work with agents. Most look at MLS listings.
Sell it yourself, and they won't see or hear about your
home. How do you find that "right" buyer or get top
dollar when you're invisible to most of the market?
2. Your FSBO will get lower offers. Naturally, the buyer
thinks you'll take less because you're saving the
commission! Save a $10,000 commission, get $10,000 less
- where's the advantage in that?
3. Advertising is expensive. The costs the real estate
office normally pays are yours if you sell it yourself.
How much could you spend on ads if it takes a a year to
sell?
4. They have the resources. And you don't. Agents have
books of sold properties to look at, for example, to
determine the best price for your home. You can dig
through county records, but you do have to value your
time too, right?
5. They know the market. What's the target market for
your house? Young couples, retirees? What features do
they want? You should know these things before you write
your ads. An experienced real estate salesperson will
know.
6. They know the laws. What about written disclosures,
and who pays for the real estate transfer tax? When you
sell it yourself you don't get to ignore the laws.
7. Are you a good salesperson? Can you develop rapport
and properly answer objections? Could your defensiveness
scare off a buyer who criticizes your home? Think back
on your own purchases, and you'll realize that a good
salesperson makes a difference.
8. Paperwork. Will you help the buyer properly fill out
an offer to purchase? An agent would. Do you have the
other closing documents ready?
9. Agents negotiate for you. When did you last learn a
new negotiating technique? Can you counter-offer without
scaring off a buyer? A good salesperson is trained in
these skills.
10. You may not save anything. The documents, newspaper
advertising, signs for the yard - it's all your expense
when you sell it yourself. After your hard work, you may
get low offers and negotiate poorly. Honestly, sellers
often net less money from the sale when they try to save
the commission.
Most "FSBO" sellers eventually turn to a real estate
agent for help. You could learn the things an agent
does, but is it worth it to spend all that time and
maybe not even save any money? Don't sell it yourself
unless you really know what you're doing. That's my
number one FSBO tip.
About the author:
Steve Gillman has invested in real estate for years. To
see a photo of a beautiful house he and his wife bought
for $17,500, visit:
http://www.HousesUnderFiftyThousand.com
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