If you’re considering selling your home on your own, aka listing it as For Sale By Owner (FSBO), I want to provide you with some tips and tricks to help you succeed, as well as highlight some potential pitfalls to avoid in the process.
1. No lowball investor offers. Around 90% of the calls FSBO sellers are likely to receive about their listing will be from people who aren’t qualified to buy the home. In your ad, be sure to put the stipulation of “no lowball investor offers.”
2. No contract for deed. Additionally, specify “no contract for deed” as well. The rate of default on contracts for deeds is very high, and many people are looking for something to rent-to-own. If that’s something you’d like to do, then that’s up to you. However a lot of times, it can be a recipe for disaster.
3. Your buyers must be pre-approved. There are approximately 2,700 homes on our MLS as we speak, so consider this as you sell: How are buyers going to find your home, and why would they buy yours over a competing seller’s? As a FSBO seller, what kind of exposure do you expect to get for your listing? When we as agents put a home on the market, we can put your listing on around 1,000 websites.
4. What will your costs be to sell on your own? In your ad, if you do not offer to cooperate with a real estate agent, then you likely won’t get any real estate agent’s clients, because those buyers are under contract with their agents, and they certainly won’t allow them to buy your home if you’re not offering some sort of compensation. Hiring a listing agent will get you more than selling on your own.
"How are buyers going to find your home, and why would they buy yours over a competing seller’s?"
5. Consider your experience with negotiating. Capable agents negotiate several transaction per year. If you’re not trained to negotiate or do home inspections, you might be headed for a bad transaction.
6. How are you ensuring that you’ve properly valued your home? Again, without experience or expertise in the field, you could be leaving money on the table or overpricing your home, both of which will lead you to problems later on.
7. Can you handle the activity? Does your lifestyle allow for answering multiple calls a day from inquiring buyers? Many will simply move on from your home if you don’t contact them in short order. We’re master salespeople, and we can handle phone calls, appointments, liability, appraisals, inspections, negotiations, and all the rest. We have many staff members that divide up the work to help make a transaction smooth.
If you have any questions about selling your home on your own or would like to learn the merits of hiring an agent, please don’t hesitate to reach out to me. We can help make sure that you sell your home for top dollar.