For Sale by Owner 101
There are several factors to consider when you decide to sell on your own. There are some pretty strong national statistics not in the favor of a FSBO...30% of for sale by owners actually get to the closing table after finding a buyer on their own. Why is that??
Because I believe my job begins when an offer comes in....it's not a question of just getting the property into the MLS. It's a question of knowing all the in's and out's of what kind of offer you have on the table and what kind of buyer you are dealing with. Realtors are not only the conduit to the buyer pool but they have been honing their negotiating skills for years. Finding a buyer is one thing...doing the necessary hand holding (they liken buying and selling real estate to death and divorce you know) but the negotiation not only starts with the offer but it continues through the home inspection...sooooo....what issues are maintenance issues and what issues are home inspection issues...only your realtor knows for sure. Do you have access to the neccessary comparable properties to substantiate to the appraiser the value of your home????? The bottom line is your chances of actually getting to the closing table are 70% greater when you use a realtor and even then there's no guarantee...no roses until it closes is one of the favorite realtor sayings. As long as the buyer wants to buy and the seller wants to sell your chances are pretty good but as soon as one of those things changes, watch out for the deposits and who is protecting you???? Below are other factors to consider when selling on your own.
Are You Available to Show the Property?
One of the difficulties sellers have when trying to sell their own home is being available at all times. It poses problems in that it interupts work, family, and social schedules. When a buyer wants to look at a home, it must be available for them at that time. Most buyers are on some kind of a schedule and they are not flexable enough to look at the home when it is convenient for the Seller. The concept is the same as owning a store...will someone be there to open the doors and show the inventory.
Handling Objections
"I want to think it over..."
"We've decided to rent for a while longer..."
"The home is not in good enough condition..."
"The price is too high..."
"We don't have enough cash for the down payment and closing costs..."
Helping a Buyer Obtain Financing
What different loan programs are available?
Where are they found?
What are the requirements and limitations?
What are the fees charged?
How long does it take to get them processed?
Is the best loan for the buyer good for the seller?
Safety Issues
It may be a sad state of affairs to have to concern yourself with safety in your own home but it is a reality. There have been situations where criminals have posed as potential buyers in order to "case" the home to find out what personal belongings would be worth stealing. By asking casual questions of the seller, they can find out when the seller will be gone and whether there is a security system. Even more sinister criminals actually assault sellers in the sanctity of their own home.
While a professional real estate agent is not totally exempt from such tactics, they are better prepared to handle them. Meeting a prospect at the real estate office where others can see the prospect will discourage them because they can be identified. Another common requirement some real estate agents make of prospects is to make a copy of their driver's license and keep it on file.
Who Saves the Commision...The Seller or the Buyer?
If a buyer has to learn the process of buying on their own, identify the neighborhoods, find the homes, write and negotiate the contract, secure the financing, arrange the inspections, and coordinate the closing, on their own rather than using an agent, don't you think the motivating factor will be to save the commission?
It is a known fact that the seller and the buyer can't save the same commission! So essentially, the buyer and the seller are both paying the commission!!!