Selling your own home is attractive to many people. In this article, we’ll take a look at the good and the bad of listing by owner or FSBO.
Why would you want to sell your own home?
Obviously, you have the potential to save money. By selling your home yourself (for sale by owner or FSBO), you can save the commission you would normally pay to a real estate agent (often up to 6% or more!)
You may need to sell your house quickly. By reducing the sales price by the amount you save on commissions, you may be able to price your home below market value, still earn the same profit, and sell it as quickly as possible.
You are probably the perfect person to show your home to buyers. Who else knows your home and neighborhood better than yourself? Probably no one! So who better to tell others about your home? (Be careful here. You may know everything about your home, but don’t know exactly what might excite or discourage a potential buyer.)
You can maintain better control of your life. If you’re scheduling viewing appointments, you can choose when to have prospective buyers come view your home. If you’re not feeling well, or didn’t have a chance to clean up the kids this morning, you can schedule shoppers to come later in the week!
These are just some of the advantages of selling FSBOs. Now let’s take a look at some of the disadvantages of selling your own home.
Difficulties selling your house on your own?
Don’t let this scare you, but there is are some potential problems when trying to sell your own home.
Many buyers look to FSBOs for the same reason that many FSBOs try to sell on their own…to save money! Now, that probably doesn’t come as a surprise to you, but think about what it really means. Both the buyer and the seller are trying to save the same money on the same house. There are ways around this, but don’t get defensive when someone walks in and makes a “low” offer on your house.
At least some of the money you save by not paying the realtor’s commission will still have to be spent on marketing your home. Directional and yard signs, newspaper ads, brochures… it all adds up. You can still save a considerable amount of money, just be sure to budget for these expenses beforehand!
You’re still going to have to deal with real estate agents! It’s a fact that most FSBOs receive an average of 2-3 times more calls from realtors than buyers! Especially during the first few weeks you try to sell on your own. We’ll talk about how to deal with these calls in a moment.
Speaking of phone calls, expect to get them from realtors, buyers, and “watchers” at all hours of the day and night. It’s often hard for a seller to know who’s really a good prospect, so they’ll probably show their house much more often to get the same results. Plus, you need to have a way for buyers to contact you right away, which can be difficult if you’re working, shopping, going to soccer games, or…well, you get the idea! At the very least, you’ll need to get a good answering machine.
You will have to reply to your messages. frequently! The more motivated a buyer is, the less time they will have to respond to you. You’re probably not the only one they’re calling, and if you wait a few hours to call them back, they’ll have moved to another house.
Lastly, and possibly most importantly, you’ll be competing against all other home sellers in your area, and that includes those who have listed their home with a real estate agent.
A good real estate agent offers many advantages to his clients. The agent has access to the Multiple Listing Service (MLS) and probably works in an office with many other agents, all of whom have buyers looking for different types of homes. They can advise you on the best-selling features of your home and anything they can do to give your home more “curb appeal” so it sells fast. You will have to work harder without an agent, but you expected that, right? After all, you are saving your commission!
Preparing your house to sell.
Alright. You are still with me. You can avoid not having an agent, and possibly even get one to do some of the work for you for much less, maybe even free! But first, let’s get your house ready to sell.
First, get rid of the clutter. Empty the closets, clean out the garage, if you don’t need it, get rid of it! It’s amazing what most people (myself included) can accumulate in just a few years of living somewhere! Get rid of everything you can! I know it’s hard (get a storage unit if you must) but I can tell you that 99 times out of a hundred, the house with minimal furniture and knick-knacks will sell much faster and for more than a house with all of those things still there. . Also, getting rid of the excess stuff will save you a fortune in your movement!
Once the clutter is gone, clean up your house. Better yet, save time and effort by finding a reputable cleaning service and have them do it for you! or you want the house to be spotless. if your house is In fact clean, buyers will feel that you’ve kept it in good repair, too.
Speaking of cleanliness, if you have pets or if you smoke, ask a friend or family member to come over and smell your house. We don’t see or smell what we get used to. I’ve been in houses that absolutely reeked of pet odors or cigarette smoke, and the owner couldn’t smell a thing. This can cost you thousands!
Make minor repairs or hire someone to do it. Little things can really turn a buyer off. They get the impression that your house is not well cared for and that costs you money! Paint a wall, fix a leaky faucet, replace a burnt out light bulb, all those little things you’ve been wanting to do…do them!
There’s a Reason It’s Called “Outside Appeal”
The entrance of your house makes the first impression on your buyers. Paint the front door, it really helps to make your home look attractive. Bright colors are considered welcoming, many experts believe that red is the best color. Clean around your entrance, if your screen door is unsightly, repair or replace it.
Mow the lawn, rake leaves, trim those overgrown bushes, plant fresh flowers! If you need to, caulk the driveway and hallway cracks… your home will look well cared for!
Then mentally prepare your family for what’s to come! Having strangers walking through what is a private and secure space is unsettling for everyone. Explain what is happening to young children. Who knows, you might even have them keep their own room clean!
Finally, depersonalize your house as much as possible. Family photos of Great Uncle Jesse may mean a lot to you, but they’ll make it that much harder for buyers to imagine living in your home.
Well, that’s all for now. In the next installment, we’ll talk about setting up your equipment, pricing your home, attracting potential buyers, showing your home, and accepting the offer.