Greatest Gold-Mine Of Easy "For Sale by Owner" (FSBO) Advice Ever Crammed Into One Site
Before deciding whether to attempt to sell your home and keep the commission you would pay a real estate agent, consider these important details.
Most Real Estate agents will advise you against placing your home For Sale By Owner, because it will take much longer to do it without their help.
Do you remember, though, when you purchased your home? If your experience is similar to that of most purchasers, you were led around the property by a Real Estate Agent who asked you to complete some paperwork, and then you waited in an office while they did the remainder of the work, and then the Agent received the commission (at least 5 to 6 percent, and sometimes even higher).
Granted, the Real Estate Agent does not have a job that requires no effort, but if you are willing to work at it, you will have a good chance at succeeding to make a quick sale using the FSBO method.
The first step is to decide: is it a buyers or sellers market? The presence of more buyers and fewer sellers result in a buyers market, and houses sell faster. Sellers markets, however, may require the seller to make two or three extra mortgage payments during the time that it takes to locate a buyer, and the faster process of using an Agent might be a more desirable alternative.
Consider other homes for sale in the immediate area. For what length of time have they been listed? If homes are not selling quickly, it may be wiser not to move until after a buyer is found, which gives you longer to locate a buyer, but less time move out of your home.
Second - Be Prepared! There's nothing more frustrating than being asked a bunch of questions you can't answer. Ask a Broker for an "over-the-net" home evaluation (these are usually free), so you'll have proof of the homes value. Hire a Real Estate Attorney to find out what paperwork you will need, the Attorney can also do the closing. To find out what forms you will need, go to the State Real Estate Commission.
Find an Escrow company that you can recommend for the good faith deposit and make contact with a Title Company. Remember, it is the buyers responsibility to hire the Mortgage Broker for their loan, as well as who they want for Escrow and closing, but if they have no clue where to go, your help will be most appreciated, and you will have a better chance of making the sale if you look like you know what you're doing.
To cut costs, advertise only when Real Estate Ads are most prominent in the newspaper, and if other open houses are going on in the immediate area, show yours concurrently.
If, despite your bests efforts, potential buyers are not appearing, consider investing money in the services of an economical Real Estate Broker, or a Discounted or Medium Service Broker (these may service contracts primarily through the Internet). Utilizing these resource may assist you advertising in a Multiple Listing Service. The additional charge of uploading a photo of your home is money well spent. Mere words are inadequate to effectively advertise your home.
As a last resort - You might also consider working with a Buyers Agent. These Agents work for a buyer, and normally split the commission with the Sellers Agent. Since you are sellers agent in this case, you may get some help, and a quicker sale for 2.5 to 3 percent of the selling price.
To reiterate, compare the cost of paying an agent with that of an extended time required to sell the house. Three percent of $300,000 is still $9,000 in the perception of a Buyers Agent; however, considering that most agents will charge you 6 percent, you still save an extra $9,000.
Evelyn Grazini is an expert author on articles concerning For Sale By Owner (FSBO) advice for homeowners who want to sell their homes quickly. Articles, resources, and a free report on 'What to Repair and What to Remodel to obtain TOP DOLLAR when you sell! www.fsbotactics.com/asale.htm
Published March 13th, 2008
Filed in Real Estate
