For sale by owner, or FSBO signs are popping up through cities across the U.S. It appears that home owners are becoming more confident to compete with, or eliminating the middleman, the real estate agent. Every FSBO has their reason for not using an agent. Some have had bad past experiences with agents, and feel they can do a better job at getting their property sold. Others must sell their home on their own, simply due to the declining property values. They can't afford to pay an agent. Also there is the "experienced" home seller. They have purchased and sold before therefore they do not feel the need to share proceeds with an agent.
Whatever the reason is, more and more sellers are determined to act as their own agent. Here are a few tips for FSBO sellers such as yourself to consider when selling your home.
Clean and stage.
Keep your home extra clean and clear away the clutter. Enhance the curb appeal by manicuring the lawn and plant some flowers for a splash of color. Use a pressure washer to clean up the exterior. So many homes have a shabby or premature aged appearance due to the sediment formed around the lower half of the exterior.
Advertise.
Get your home in front of potential home buyers. Simply posting a sign in your front yard and telling your neighbors you want to sell, won't be enough. Take advantage of the publications in your local area and invest some money in advertising for your FSBO home. Additionally, it is important that you get your home listed online. Luckily, there are several online resources available to FSBO home sellers. They will enable you to list your property on high traffic websites. Remember, this is a technology-based society, so buyers use the Internet to search for potential homes. Avoiding the Internet, is basically avoiding potential buyers.
Price accordingly.
The number one mistake for sale by owner sellers make is pricing the property. Most buyers prefer to enlist the services of an agent and will not purchase a home without representation. Buyers who are willing to purchase direct from the owner have one intention in mind - to save money. Don't become greedy, because buyers are educated these days and they have the power to pull comparable home sales in your neighborhood. Today's buyer will also realize that you're not paying an agent, so they expect that your property should be priced far lower than a comparable listed home.
Allow a buyer's agent to sell your property.
Generally speaking, a listed home will typically sell faster and for a higher amount than a for sale by owner home. However, some FSBO home sellers feel the real estate agent is the "the bad guy." Too often, home owners are bombarded with phone calls from agents asking to list the home. And combined with prior bad experiences, this action alone may lead the home owner to have a very bad opinion about agents. Keep in mind that not all agents are looking for the listing. So if you make yourself clear upfront, as well as in print, that you will offer a percentage to a buyer's agent, this will open way for more exposure to your for sale by owner property. They should be able to offer a guarantee that will release you from your listing agreement in case you later see that their obligations to you are not being fulfilled.
Should the agent have a buyer, and you wish to sell, you'll be able to net the desired outcome for all parties by simply working together. Sure, you'll have to sacrifice a slice of your proceeds, but it may be the action that makes a "for sale" become "sold". Remember that keeping your home just sitting on the market won't do you any good if it nets you zero proceeds. Offering a percentage to a buyer's agent will still save you money because you won't be paying a listing agent. More importantly, it may reduce the time your house would be sitting on the market. In the end, that puts money in your pocket.
