Are you looking to sell your home on your own? Whether it’s because you want to walk away with more money or retain more control over the sales process, you need to do it the right way. That may involve spending a little extra money upfront to maximize the sale price and minimize any headaches. If you’re considering selling on your own, known in the industry as a For Sale By Owner or FSBO, here are six things you should know to make selling your home on your own a success:
- Prioritize Safety
Over the past two years, we’ve realized the importance of a safe and healthy home for your family. When you FSBO, it can be incredibly difficult to control entry into your home. Have the proper protocols in place to protect not only your belongings but your family’s health and well-being too. From regulating the number of people in your home at one time to still ensuring proper sanitization during and after a showing, and even facilitating virtual tours for buyers. I have the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your family. I’m just a phone call or email away.
- A Powerful Online Strategy Is a Must to Attract a Buyer
Recent studies have shown that, even before COVID-19, the first step 44% of all buyers took when looking for a home was to search online. Throughout the process, that number jumped to 93%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong Internet and social media strategy to promote the sale of your house. Make sure you’re able to do the same. If you have any questions, just reach out to me.
- The Negotiation Process
Here are just a few of the people you’ll need to negotiate with if you 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 inspection companies, which work for the buyer and will almost always find challenges with the house
- The appraiser if there is a question of value
As part of our training, we are taught how to negotiate every aspect of the real estate transaction and how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives. If you have any concerns about negotiations, please reach out to me.
- Whether the Buyer is Qualified for a Mortgage
Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, it’s almost impossible to be involved in the mortgage process of your buyer. As a real estate agent, I am trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress that’s being made toward a purchaser’s mortgage commitment.
What may further the situation is how the current mortgage market is rapidly evolving because of the pandemic. My team works with lenders every day to guarantee your buyer makes it to the closing table. If you have any questions, please reach out to me.
- FSBOing Has Become More Difficult from a Legal Standpoint
The documentation involved in the selling process has increased dramatically as more and more disclosures and regulations have become mandatory. In an increasingly litigious society, an agent acts as a third party to help the seller avoid legal jeopardy. This is one of the major reasons why the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years. That doesn’t mean you can’t do it, but talking with an agent like myself can help.
- You May Net More Money When Using an Agent
Many homeowners believe they’ll save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.
A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, the seller may even net less money from the sale. The study found the difference in price between a FSBO and an agent-listed home was an average of 6%. One of the main reasons for the price difference is effective exposure:
“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.“
The more buyers that view a home, the greater the chance a bidding war will take place.
Bottom Line
Listing on your own leaves you to manage the entire transaction yourself. If you decide to take on the challenge of selling your house alone, let’s connect so I can help guide you through the process. You can reach me at (210) 852-1676 or email Jason.keller@kw.com.
