|
Planning
to Sell Your Home Alone? Read this First
Experts say about 15 percent of potential sellers
first try to save the agent's commission by doing a For Sale By Owner,
commonly called a FSBO (pronounced fizzbow).
Some succeed. Carolyn and J.C. Jones, for example, have sold several
homes on their own. But Carolyn, who heads her own advertising agency,
concedes that a lot of time and effort is involved long before they put
their house up for sale.
"We study the market before we buy, get a choice location, do the
remodeling that will give us a return on our investment and strive to
have the most attractive looking yard and home in the community,"
she says. They also analyze home sales methodically, set their price
carefully, hire a lawyer who specializes in real estate and apply all
the professional marketing and negotiating skills they've developed over
the years.
Could your FSBO be successful? Perhaps, but keep in mind that many of
the 15 percent of would-be FSBO sellers invest time and money in the
process, then turn to an agent when sales prospects dwindle. Moreover,
agent-assisted sales typically put more money into a seller's pocket
than a FSBO, according to studies cited by real estate specialists.
How much more? "On average you net 2-3 percent more--after paying
the commission--by using an agent," says Michael W. Owen, a Realtor
with Arvida Realty. "Your Realtor earns that commission--and you do
come out ahead."
One big reason is the way shoppers approach FSBOs. "Buyers are
looking for a steal when they're going to a FSBO," says Kerry Kelly
of National Hallmark Realty. "They automatically deduct a sales
commission before they start negotiating. The old saying is true: both
sides cannot save the same fee."
There are other major financial and even emotional factors to consider
before selling your own home. For example, an agent can give you
competitive pricing and marketing edges that would require time, money
or both to achieve on your own.
"You can't just talk to the neighbors for real estate pricing
information," explains Mollie Bryan, a Realtor with The Prudential
Florida Realty. "They may say that the Smiths got a price they
liked, but that doesn't mean they got their asking price." Realtors
have updated, comprehensive data on actual sale prices of homes in your
area. They'll also give your house a broader exposure to the entire
market than you can, especially if they're part of the multiple listing
service available only to those displaying the Realtor symbol.
"Less than 5 percent of houses actually sell from an ad in the
newspaper," notes Bryan.
And never forget you're competing against savvy pros, so you should
offer at least some of the many services provided by agents:
 |
Be informed about the wide range of
financing options buyers have.
|
|
Be knowledgeable about details of your home
(dimensions, building materials, average utility bills) and your
neighborhood (schools, zoning, planning).
|
|
Be sure your home is staged properly to
showcase its benefits from curb to closets.
|
|
Be available for showings day and night,
seven days a week to reach the widest possible range of buyers.
|
|
And, be very aware of your disclosure
requirements so you don't have to pay unnecessary damages.
There are State and Federal Disclosures required by law. |
Yet, even all that isn't the hardest part, say
agents. The toughest thing for most sellers on their own is not being
able to screen prospective buyers.
It usually starts as an annoyance over time-consuming tours by curious
neighbors or financially unqualified visitors. It may include concerns
about strangers parading through your home. It often escalates into
anger as you hear unflattering comments about your house. And,
ultimately, it can get downright ugly as negotiations become heated.
"I've been in the business 16 years and I wouldn't sell my own
home just for reason of emotion. I feel you need an in-between
person to do your negotiating. We all have sentimental values connected
with our home that cloud our judgment. I listed my last home and
paid a commission to another agent who had a buyer for my home."
That's an opinion shared by most veteran real estate salespeople. They
believe their expertise and efforts in pricing, marketing and
negotiating are well worth their commission. Which brings up a simple
question: if most pros won't sell their own homes alone, are you sure
you really want to?
|
