SO! You want to sell your home...(by yourself).
Awesome. No really, awesome. I'm a Realtor in the minority that says more power to you! It's not because I think "cool, you'll save so much money" (well, you actually will save some, if done right); but, more so because, I give major kudos to any unlicensed professional that knows exactly how to complete a home transaction sale, without any help from a Realtor. And, yes, asking a relative or friend with a license counts as help.
Aside from an air of sarcasm you may sense in my comments, I mean them with all sincerity. Let's face it, real estate is not brain surgery; however, we also don't get our license out of Cracker Jack box. We've taken the time to become knowledgeable, in order to pass a state and national exam; and exert additional effort after we are licensed, to stay current with new laws affecting those buying and selling real estate. We really do care about protecting our clients.
8 or so reasons to be a FSBO (until you reach #5)
That said, let's go over the steps it takes to accomplish a FSBO (For Sale By Owner).
Let me begin by telling you what I really think FSBO should stand for...Forfeit Savings By Obliteration.
Yep, I sure do. If I say nothing else in this blog, please here this...if you don't lose money, at the very least you'll lose time. And, what is that old saying, "time is money". Enough said.
Mindset of a FSBO (fyi...before being a Realtor, I was a FSBO):
1. Look on Zillow, Trulia, Realtor.com, Craigslist, etc., to get the true value of my home.
2. Put my home on every internet site known to man; and, then stick a box out front with some cool flyers.
3. Hold an Open House or two, with signs peppered along the neighborhood streets.
4. Show the house (it's easier to show it when I'm selling it, because the buyers have to work around my schedule). LOL.
5. Receive an offer, and review it. Geeze, I hope I don't miss something. Do I have all the paperwork? Who opens title? What are my closing cost? Do I call a lender for that or the title company? When do the reports all have to be done? What happens if there are problems with the reports? Do I have to pay for all the repairs?
6. I need to call someone. I don't want to hand over that extra 3%! I need that money.
7. Wait. The appraisal didn't come in at value; and, now they say they aren't going to buy it. Oh no, we are in contract, and they ARE buying it! What loan disclosure? I think we missed that page.
8. What? I just got to the title company to close, and the check was like thousands of dollars less than I was expecting to receive! HUD-what Statement...what's that?
Okay, well...up to about #5 you were Gucci, right? Trust me, I remember that feeling of "did they write this BRE contract in another language (like ig-pa atin-la)?!!! I also recall the feeling of debilitating fear and steadfast stubbornness at NOT calling a Realtor. Yet, I called; and, then I became one (mostly, because I really, really wanted to help people avoid my same pitfalls).
Can we REALLY talk, now
Can we talk, now? Let's get down and dirty here; truth be told, a FSBO happens because of money. You don't really care who "shows" the house or makes the schedule. And the old excuse, I don't want strangers in my home when I'm not there; uh, do you know that Realtors have to be fingerprinted and pass a FBI and State background check before we get that little Star Trek thingy to open your home up? I think you're pretty safe with us.
Back to the money. Just for kicks and giggles; let's go with a fact for a minute, instead of an assumption, and see what that looks like:
According the National Association of Realtors, 2014 the average FSBO sales price was $174,900; and, the average sales price of a home with Realtor representation was $215,000. That is a $40k-ish difference! So, see selling your home with a licensed professional will bring you a higher profit; as well as, coverning the commissions.
Another interesting NAR fact:
Most difficult tasks for FSBO sellers:
- Understanding and performing paperwork: 18%
- Getting the right price: 13%
- Preparing/fixing up home for sale: 12%
- Helping buyer obtain financing: 3%
- Attracting potential buyers: 3%
- Selling within the planned length of time: 7%
- Having enough time to devote to all aspects of the sale: 6%
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