For Sale By Owner Advice

Posted by Steve Vincent on Mar 7, 2014 9:13:26 AM

In save commission, FSBO, Sellers, Selling by owner

Thinking personThe For Sale By Owner option can be very attractive to some homeowners. They are sure with a little advertising, they could find a buyer on their own without the heavy expense of a Realtor's commission. Think about it: if your home is worth $250,000 and you've agreed to pay a commission of, say, 6%* . . . well, that's $15,000! And maybe you have just $40,000 in equity in your home. Suddenly that $15,000 commission is equal to 37.5% of your equity!! Surely you shouldn't have to give up that much just to get your home sold!

There are, however, a number of reasons why you might want to be cautious about going For Sale By Owner, notably:

Safety. How will you know who is walking through your home? How will you protect yourselves and your valuables? Perhaps you are giving a tour to someone who may return when you aren't there.

Financial and contractual protection. How will you protect yourself in a legally binding contract negotiation? Are you so knowledgeable about real estate law and finance that you can avoid making costly mistakes? Unless you are in the business everyday, negotiating a real estate deal on your own behalf is a little like attempting to fill your own teeth when you have a cavity!

Marketing know-how and ability. As a For Sale by Owner you can advertise your home in the paper, and on Craig s List. You can put a sign in the yard and hold an open house. But can you mount a comprehensive marketing campaign that puts you in touch with dozens, even hundreds of local buyers, any one of which might be perfect for your home? That's what we do at GreatNest. Getting the best price and terms for your home is a function of exposure: the more potential buyers who are exposed to the property, the greater your chances of getting top dollar.

Access to your 'Best Buyer.' As a For Sale By Owner, you can find some kinds of buyers. You can find the local trade up buyer. They've been looking for a year for the perfect home, and one of their top requirements is: it's got to be a bargain! Plus, they have a home to sell before they can close on yours! And you can find the investor. You know: he wants to pick up your home for 80% of value, remodel the kitchen and 'flip' it for a nice profit! What you probably can't find as a For Sale By Owner is the capable and ready-to-buy out of towner, moving to The Triad. They almost always work with Realtors - and are usually your Best Buyer. Think about it for a moment: if you were moving to a strange city, would you trust yourself to find the right house in the best neighborhood for a great price? No, you'd probably seek professional help.

Usually, when a new For Sale By Owner sign goes up, dozens of Realtors show up wanting to list the property. I find that often, after a few days, most such sellers agree not to list, but to pay any agent who brings an acceptable offer a normal buyers side commission. In our $250,000 example that would be $7,500 - with no representation, no marketing, no protection at all.

What they don't realize is that with our Low Set Fee pricing, they could get the FULL SERVICE of a licensed professional Realtor for LESS than even that $7,500!

We are different. We charge less ... a LOT less. And we get the job done. In nearly ten years I don't think I've ever heard a home seller gasp when they see our fee on the closing statement. Instead, they usually smile, nod and say 'Thank You!'

Before you try to go it alone with no help, no expertise, no marketing and no protection, find out what we can do for you for a Low Set Fee. I think you'll be pleasantly surprised.

How about getting started with a Free Home Evaluation? We'll be happy to provide a market analysis and have an objective conversation about the pros and cons of For Sale By Owner.