12 IMPORTANT FACTS TO CONSIDER BEFORE YOU TRY “For Sale By Owner”
Thinking of going the “For Sale By Owner” (FSBO) route? Owners think that selling their own home will not only save them money, and they have an advantage over the sellers that have their home listed by a Real Estate sales professional. Before you decide to take on this legally complicated process, most real estate lawyers would advise against it. Here are a few of the reasons why:
1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take 10 to 15 times longer to sell on the market.
2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long… there must be something wrong with the home.
3. The selling/buying process begins AFTER the buyer leaves your home. Some sellers think that it simply takes someone to see their home, fall in love with it and the offer will follow. The buying process actually begins after they leave your home. If a real estate sales representative does not represent the buyer, they usually leave the home and start to talk themselves out of the buying process. Real estate professionals are trained on how to reverse buyers remorse–a very common occurrence.
4. Because of the limited exposure you will very likely end up with a lower selling price. In order to generate the highest price possible for your home, a real estate professional will increase exposure. You need the maximum exposure possible to generate the highest price possible.
5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid “For Sale By Owner” properties.
6. Lack of negotiating experience and lack of pertinent important information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.
7. The majority of qualified buyers are working with experienced real estate professionals. It is important to know what you are up against.
8. Expected savings in broker’s fees will also be greatly reduced if you offer a selling commission to entice real estate sales representatives to bring potential buyers.
9. If you are planning to use a lawyer to help you negotiate the offer, then your lawyer’s fees will be considerably higher.
10. Only real estate sales representatives have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to real estate sales people. Further, real estate sales representatives are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an important edge on negotiating and successful selling.
11. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.
12. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer’s to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional can be the most important. Your Real Estate professional can act as a great mediator. Lawyers MUST act only on their client’s instructions and are not paid to negotiate