Here are some important things to consider and do before you decide if you should sell your home yourself – and keep the Commission in your pocket!
Consulting a Real Estate agent about placing your home For Sale By Owner will probably result in their advising you against it, and they will tell you that it will take you twice as long to sell the home than if they helped you do it.
Despite this advice, consider the course of events that occurred when you purchased your home. Most agents show the property to the buyer, give them forms to complete, and then have the buyers wait while they complete the transaction and take the commission of 5 to 6 or more percent.
I’m not saying the Real Estate Agent has an easy job, but do your homework and you will be in a very good position for a FSBO quick sale.
First, determine whether it is a buyers or sellers market. In a buyers market, there are more buyers then homes available, making it easier to sell. In a sellers market, determine if you want to take a chance and pay an extra two to three mortgage payments on your house while you try to sell it, or hire an Agent.
Consider other homes for sale in the immediate area. For what length of time have they been listed? If homes are not selling quickly, it may be wiser not to move until after a buyer is found, which gives you longer to locate a buyer, but less time move out of your home.
Second – Be Prepared! There’s nothing more frustrating than being asked a bunch of questions you can’t answer. Ask a Broker for an “over-the-net” home evaluation (these are usually free), so you’ll have proof of the homes value. Hire a Real Estate Attorney to find out what paperwork you will need, the Attorney can also do the closing. To find out what forms you will need, go to the State Real Estate Commission.
Find an Escrow company that you can recommend for the good faith deposit and make contact with a Title Company. Remember, it is the buyers responsibility to hire the Mortgage Broker for their loan, as well as who they want for Escrow and closing, but if they have no clue where to go, your help will be most appreciated, and you will have a better chance of making the sale if you look like you know what you’re doing.
Save money by advertising only on the major Real Estate Ad days, and if there are any open houses going on in your neighborhood, have yours at the same time.
If you have done all of these things and still are not encountering potential buyers, you may need to contract with a Discounted or Medium Service Broker, or possibly with a low cost Real Estate Broker (these resources may provide their services through the Internet). By using these agents, a seller might be able to advertise with a Multiple Listing Service. The extra cost required for contributing a picture of the house is well worth the investment. A written advertisement is completely inadequate to effectively list your home.
As a last resort – You might also consider working with a Buyers Agent. These Agents work for a buyer, and normally split the commission with the Sellers Agent. Since you are sellers agent in this case, you may get some help, and a quicker sale for 2.5 to 3 percent of the selling price.
Again, weigh getting help with having the house on the market for a longer period of time. A 3% commission on a 300,000 house is still $9,000 to a Buyers Agent, but compared to the 6% that Real Estate agents charge, that’s an extra $9,000 that stays in your pocket.
Evelyn Grazini is an expert author on articles concerning For Sale By Owner (FSBO) advice for homeowners who want to sell their homes quickly. Articles, resources, and a free report on ‘What to Repair and What to Remodel to obtain TOP DOLLAR when you sell! www.fsbotactics.com/asale.htm
- Evelyn Grazini
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