Selling your home by yourself may sound like a great idea. Everyone likes the idea of saving money on the real estate agent’s commission, and it can be a very rewarding endeavor. But is For Sale By Owner (FSBO) the right way for you to sell your home?
If you are planning to be an FSBO, Movoto’s Sellers Program can help bridge the gap between your experience and a real estate agent’s resources by providing coaching from an agent, professional photos and brochures, listing on the MLS, legal documents, and much more.
Ask yourself these questions to gauge whether For Sale By Owner can work for you, and areas where you might need some help.
1. Can you price your home correctly?
To determining the true market value of a home, you must be able to look at comparable homes in your area, determine how your home is both similar to and different from these homes, and then determine how to price your home based on these factors.
Real estate agents have experience in this area. They have the tools to create an accurate market, and many agents use certified appraisers. Although it is possible to do this on your own, consider hiring an appraiser, which typically runs $300 to $500.
2. Do you know how to market your home?
Many FSBO sellers rely heavily on yard signs and follow that with some social media exposure. The problem is that signs are no longer the best method for attracting the attention of potential buyers, and the likelihood that your buyer also happens to be connected to your circle of social media contacts is very slim. This means that you will have to branch out.
Real estate agents market homes with yard signs and social marketing, as well as other tools including the Multiple Listing Service (MLS). The MLS is where all selling agents list houses, and all buyer’s agents look to find available homes for sale. If you aren’t listed in the MLS, you will be greatly hampered when it comes to selling your home.
3. Can you find the right buyers?
You’ve gotten this far and have successfully marketed your home on your own, and the calls are starting to come in. But who are these calls from? Once you have your contact information on the Internet, anyone can call you, and they don’t have to be legitimate buyers.
After getting potential buyers into your home, how do you know if they are qualified? Real estate agents work with clients who are legitimate buyers, and understand if someone who has pre-qualified is really going to be able to get a loan for your home. If you choose to go it alone, be sure to ask for a pre-qualification letter before accepting a bid.
4. Do you have time to show your home?
Do you work outside the home? Are your hours limited for showing your home? Many people assume that because they are free in the evenings and on weekends, that they will be just fine. The truth is that those looking for homes often do so during the week and during daylight hours.
A couple that is moving into an area is likely to work with an agent for several consecutive days. If you happen to be working during their search, your home will not be one of the ones on their list. Agents are always available to show your home. All you will need to do is keep your home tidy so that it can be shown at a moment’s notice.
5. Do you know how to show your home like a professional?
There is a lot more to showing a home than just letting people wander from room to room. You have to know when to hang back and when to talk. You need to be able to explain all the wonderful qualities of your home without being pushy, as well as answer all of the potential buyer’s questions.
You will also need to be completely honest. If someone asks you about a roof leak, you have to tell the whole truth and nothing but the truth. A good way to handle this as an FSBO is to put together a folder that shows repairs and improvements, including receipts. You might also want to have past utility bills and anything else someone may want to know about the running and maintenance of the home.
6. Can you handle nasty comments about your home?
You love the home and have many great memories. Then along comes somebody that finds your home is too small, isn’t in the right school district, has an ugly paint job, or has a kitchen that just doesn’t live up to their standards. Are you going to be able to listen to the insults with a smile on your face?
As people go through your home, they are likely to point out everything that doesn’t fit with their idea of perfection. This can be difficult for some people to handle. Real estate agents are not emotionally invested in the house. If you are going to FSBO, you are going to have to smile and realize that someone will come along that loves your home the way you do.
7. Are you a good negotiator?
When someone gives you an offer on your home, will you be ready to negotiate? You are not likely to get the price you asked for. You will need to know your bottom line, as well as anything you can offer to sweeten the deal. Perhaps you can throw in the patio furniture, lawn equipment, or appliances. Maybe offering to do a few repairs would get the sale to go through. But you will also need to know when the deal has stalled and cannot be revived. It is always good to know when to walk away.
8. Can you handle all the paperwork and legal requirements?
Once you have found a buyer, there is a lot of paperwork to complete. Missing paperwork can lead to the loss of the sale, or even legal trouble. A real estate agent will manage the lion’s share of the paperwork process, and anything done incorrectly will fall squarely on their shoulders rather than yours. If you do sell on your own, you should consider hiring a real estate lawyer to be sure that all disclosure statements are completed correctly. They can also help you develop a good purchase contract.
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