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Realtor Vs FSBO
Across the country, only 9% of home sellers sold "FSBO," (For Sale by Owner) last year. Listed below are things you should consider, think about and ask yourself when thinking of listing your home as For Sale by Owner.
Pricing Your Home: Most homeowners don’t know what their home is worth (or what the market is willing to pay for it) and it’s common for FSBO sellers to price their home well above or below its optimal price. Homeowners may go to Zillow and rely on their ‘Zestimates’ in an attempt to figure out what their home is worth… As discussed in a previous blog, this is not always accurate.
To determine the listing price of a home, a realtor takes into consideration everything from the tax-assessed value of your home, to how your home compares to recently sold properties nearby. This process is called a Comparative Market Analysis. Click this link to get yours today!
The Best Online Exposure: The National Association of REALTORS (NAR) reports that 92% of homebuyers look for homes online, so an online presence is critical to getting your home sold quickly. Most FSBO sellers do not know how to get their listing to appear on every home search site and most buyers don’t visit FSBO sites.
When you list your home with DeLena Ciamacco, with RE/MAX Connection Realtors, you receive Maximum Marketing Exposure. She will go over a list of all of her marketing websites and materials with you during her Listing Presentation. To speak with DeLena about listing your Central Ohio home, visit her website and fill out this form to get started. The Commission Issue: The primary motivation of FSBO sellers is to avoid paying a commission fee. However, NAR reports that homes sell for 25% more when sellers hire a professional realtor to handle the sale from start to finish. That means that even after paying a commission fee, sellers still come out ahead when using an agent.
A Focus on the First Two Weeks: Many FSBO sellers are not in a rush to sell their home, so they don't focus on the first few weeks after their home goes on the market. However, studies show that buyers are wary of homes that remain on the market—even if there is seemingly nothing wrong with them. When you work with a professional real estate agent, they will help you stage the home and add curb appeal so you get traffic online and offline (via showings and open houses) in those critical first weeks.
Screening Buyers: When you work with a realtor, they make sure to check a buyer's mortgage pre-approval before a private showing. To ensure you aren't wasting your time on unqualified buyers when selling FSBO, you'll have to review their mortgage paperwork before letting them in the front door.
Dealing With Paperwork And Process: Even after an offer is placed, there is a great deal of red tape when selling. Here's a roundup of the routine paperwork that homeowners have to tackle when they get an offer on their FSBO home:
Approving any contingencies in the offer or the inspection Hiring an inspector in an allotted time Hiring an attorney to approve the contracts Checking the buyer's mortgage paperwork Opening an escrow account for the earnest money deposit Ensuring the title work has been reviewed
Plus, if anything unexpected comes back after the buyer's inspection, the FBSO owner must negotiate with the buyer and their agent to determine a proper solution. This can be difficult when the buyer has retained an expert who negotiates contracts on a regular basis.
The Long And Short Of It: When selling your biggest asset, you need an advocate who isn't afraid to demand a fair market price. Our realtors take the business of buying and selling seriously and we'll negotiate fiercely on your behalf. Here are five questions experts say homeowners should ask themselves before selling a home on their own.
Do I know the value of my home in today's market? Am I ready to work with a buyer's agent? Will I take charge of sales and marketing responsibilities? Can I bear criticism of my home? Am I willing to screen potential buyers?
1. Do I know the value of my home in today's market?
A common mistake FSBO sellers make is to price their home too high. As a result, the property languishes on the market. When a home sits for a long while, buyers start to wonder what is wrong with it…The best option is to come out of the gate priced right. To market a home competitively, sellers should research the final sales price of similar properties in their community. It may be worthwhile to purchase an appraisal from a certified licensed appraiser, says Dale Siegel, a mortgage broker and author of "The New Rules for Mortgages." Buyers eventually have to pay for their own appraisals. But homeowners who buy an appraisal before putting their home on the market can eliminate the risk of a pricing surprise when a buyer applies for a home loan, Siegel says.
2. Am I ready to work with a buyer's agent?
In a typical real estate transaction, the listing agent represents the seller. But the buyer may choose an agent to represent his or her interests, too.
When a real estate deal is made, the seller usually pays both agents involved a commission based on the sale price of the house. That commission is negotiable, but it has traditionally been about 6% of the purchase price, says Nichole. The buyer's agent and seller's agent generally split the commission in half. As a FSBO seller, you may decide not to use a listing agent, but you can't control whether or not a potential buyer wants to use a buyer's agent.
3. Will I take charge of sales and marketing responsibilities?
Some FSBO sellers underestimate the amount of effort it takes to market their home. Sellers should be prepared to keep the home clean, clutter-free and "show ready" at all times. Prepare the look of your home, both inside and out. Other steps sellers should take include:
Take good photos of their property and write effective sales descriptions. Buy and install a "for sale" yard sign with promotional fliers that include contact information. List the property in multiple classified ads and real estate Web sites.
Placing the home in the Multiple Listing Service, or MLS, is another important way to market the home. The MLS is a database of homes for sale offered by brokers.
FSBO sellers can't submit to an MLS, but some companies have brokers who will list the seller's home in the MLS for a flat fee. Sellers may have to pay a few hundred dollars for this service. Before paying any money to a third-party company, research to determine if it has been in business for a while, has a good reputation and has earned favorable reviews.
In addition to marketing their own property, FSBO sellers often need to find and hire people to help them complete the sales process, Siegel says. These professionals include real estate attorneys (to review contracts and offer advice), appraisers and contractors (to make any necessary home repairs).
4. Can I bear criticism of my home?
The emotional aspect of selling a home is often overlooked, but it's an important part of the selling process. Owners will probably hear a lot about their home's shortcomings from buyers trying to negotiate a lower sales price, or worse, they may not receive any interest in their home, especially if the price is too high. You have a better chance of being a successful seller if you don't take negative feedback personally. 5. Am I willing to screen potential buyers?
It may seem pushy, but FSBO sellers must be willing to screen their own buyers. You don't want to take your house off the market to negotiate with someone who was never qualified for the home in the first place.
Before you sign a contract with a buyer, make sure the purchaser will be able to come up with the necessary funds. It's harder to get a mortgage these days because the bar is higher. Applicants need better credit, higher salaries and a bigger money reserve than they needed just three years ago.
Before accepting an offer, ask for a current pre-approval letter from a reputable lender. The preapproval letter should show that the buyer spoke to the lender and has been preapproved for the purchase price of the home.
Visit my website for additional information about Real Estate and our Central Ohio Market! www.DeLena.com
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