Homes are often confused with other property and assets, and it’s common for owners to think that they can sell a home the same way they were able to sell a car. Unfortunately, selling an asset like real property (land, homes, buildings) is extremely complicated and filled with a lot of minefields. The average professional who works in real estate has taken at least two to three years of education in addition to just as much time practicing with real sales and transactions if not more. While it is technically possible for a homeowner to sell a home from scratch, there are a lot of challenges to be aware of, and Santa Clara properties are no exception to the rule.
Source:wikimedia.org
There is no question that a “for sale by owner” or FSBO approach is appealing financially. The amount of money associated with a sales agent’s commission can seem daunting with more expensive homes. Yet one out of two homesellers in the greater San Jose area immediately respond they would work with a sales agent again if they were to sell a home tomorrow. That alone should be enough for a person to consider there are serious obstacles to face going at it alone.
Source:flickr.com
What a FSBO attraction doesn’t talk about up front is all the time, effort, paperwork, agency rules, tasks, communication and advertising that is involved to sell a home. Further, FSBOs still have to hire technical help to make a sale happen. Whether it be appraisers and research companies to access databases or get a third party valuation, or whether it’s an attorney to do the work of a broker and make sure paperwork is correct, hired help is a necessity. So that big savings a FSBO seemed to offer starts to disintegrate very quickly as the selling expenses add up.
Source:flickr.com
Consider these questions and their answers in your specific situation before starting a FSBO. The more you investigate each issue as it applies to your home, the better off you will be in making the right decision going forward:
- Running a FSBO is going to take a lot of time, and then some more time after that. Do you have that kind of personal zip to apply? If you’re already working fulltime and have responsibilities at home, taking on FSBO may not work out. The amount of time and energy involved is almost another fulltime job with all the work, research, homework, marketing and advertising. Not anticipating this kind of commitment can be a fast way to having a lot of strife at home as the stress begins to hit the boiling point. This is one of the side benefits of using an agent – the agent deals with the work and stress and you enjoy the sale when it finalizes.
- Do you have the patience to deal with all kinds of people, even those trying to talk you down in price? Buyers can get pretty blunt and direct when they think they have an advantage. And both agents and buyers are going to be less than stellar in behavior when they think a FSBO seller is not working with all the necessary information to professionally sell. Can you keep a straight face and be professional anyways, even in your own home during an appointment? Not everyone can say “yes” when thought through, and that’s why an agent can be a far better approach if so.
- Will you be willing to deal with the fuss of financing buyers? Taking on an installment sale contract is an optional way of making a sale happen, but you won’t see the payment right away. With an installment sale you as the seller become the bank and take payments over time. But there is the risk the buyer could default too. There’s no screener to find a good buyer/borrower; you have to hire the help to get that work taken care of.
- Do you have the background and education to understand all the legalities of selling a home? If not, are you will to spend the time gaining it before selling? There are myriad of issues to deal with technically. If, as a FSBO, you can’t find the time or have the background to track all these legalities, you will have to hire an attorney to protect your interests in the process. Even the best sales agents still have a broker review and check every aspect before the sale is completed. A FSBO is no different in terms of related obligations.
- Do you have the time to wait for the market? Many times you schedule to sell may not match the market’s willingness to pay your desired price. If you’re in a hurry to sell your home, a FSBO approach won’t likely produce the results you want very quickly. If you’re under pressure to liquidate quickly, a professional agent is going to be much more capable of working a challenging market with all the tools quickly, a professional agent is going to be much more capable of working a challenging market sources available at the agency office and additional staff.
There are plenty of folks who have what it takes to run a FSBO, and they make it work. So it’s not a bad idea per se. However, whether it be Santa Clara or elsewhere, a FSBO is challenging in even the best of situations. And there are some very good Santa Clara real estate agents who can help as well. It’s something to consider carefully.
