With home prices on the rise and buyer demand strong, some sellers are tempted to try and sell their homes on their own without using the services of a real estate professional. This type of sale is referred to as a FSBO [fiz-bow].
Investopedia breaks this acronym down:
'For Sale By Owner - FSBO'
The most common for-sale-by-owner transaction occurs in the real estate market when a homeowner wishes to avoid paying a large commission when selling their property. By not using a real estate agent, the seller assumes all the responsibilities of completing the transaction.
Real estate agents are trained and experienced in negotiation and, in most cases, the seller is not. Sellers must realize that their ability to negotiate will determine whether or not they get the best deal for themselves and their families.
The idea of writing this Blog post came about because I called a gentleman last week that had changed his voicemail while his home was listed FSBO. I could hear the frustration in the sellers voice:
It isn't hard to tell how frustrated James is with his home listing...
We spoke for a little while and I am going to be meeting with him late next week to see if I can help him. Even if he isn't interested in listing his home for sale with me, I feel it is only right to offer counsel to a man and his family if I can.
Selling your home on your own is no easy task. Heck, selling a home as an agent is never easy... we just make it look that way! Lol.
Before your home even gets listed for sale an agent should be investing a good portion of time in getting to know your home, the home sales and current listings in your neighborhood and compare the data to measure it against the current market.
Listing a home for sale isn't a matter of knowing HOW MUCH a homeowner wants to make. When a agents agrees to sell your home they should be offering a certain level of expertise and professionalism.
Your agents primary concern should be: Is this the best decision for you and your family?!
Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO:
- The buyer who wants the best deal possible
- The buyer’s agent who solely represents the best interest of the buyer
- The buyer’s attorney (in some parts of the country)
- The home inspection companies, which work for the buyer and will almost always find some problems with the house
- The termite company if there are challenges
- The buyer’s lender if the structure of the mortgage requires the sellers’ participation
- The appraiser if there is a question of value
- The title company if there are challenges with certificates of occupancy (CO) or other permits
- The town or municipality if you need to get the CO permits mentioned above
- The buyer’s buyer in case there are challenges with the house your buyer is selling
- Your bank in the case of a short sale
The percentage of sellers who have hired real estate agents to sell their homes has increased steadily over the last 20 years. Meet with a professional in your local market to see the difference they can make in easing the process.