Should you sell your own home?
Should you consider going FSBO (For Sale By Owner – pronounced “fizbo”) in this market? My answer as a real estate agent might surprise some because it’s basically, “Sure!”
As a Realtor I don’t really care if you decide to tackle selling your home on your own. If that is something that you want to take the time to mess with, then more power to you.
If you don’t want to deal with all the potential buyers, the paperwork, the legal issues, the marketing and so on, call a real estate agent and pay them to sell your house. That’s why we’re here. You pay folks to clean your home, write your will, install flooring, fix your plumbing and/or deliver your groceries. You pay a real estate agent to sell your home, same concept.
Do real estate agents have a lot more knowledge than consumers? I would say it depends. I’ve met a number of consumers who have a surprising amount of knowledge about real estate. I will also say that agents in Colorado are required, by law, to take a certain number of continuing education classes each year and I certainly hope that most agents take additional classes beyond their required credits – just for the sake of knowledge - I can say that I most definitely do.
You may want to consider FSBO if you have very little equity in your home and don’t have enough cash to pay a higher commission rate. (Although keep in mind you may be able to talk a listing agent into selling your home for a lower rate because of your financial situation.)
If you’re going to try FSBO I do recommend that you automatically (especially in this softer market) offer at least 2.8-3% commission to a buyer’s agent. You want to give them an incentive to show your home to their clients!
I would recommend against doing FSBO simply because you’re convinced that your home is worth far more than the Realtor told you. You can look up the recent “sold prices” of homes in your neighborhood with your county office. Your home will sell for roughly the same amount. No ifs, ands, or butts. If your home has been updated and is in PRISTINE condition it may sell for a little more than average, but in the end it will only sell for what the market can bear. Realtors don’t dictate that rule, the market does. The most successful FSBO sellers (and Realtors!) understand that and price their home accordingly.
Understand also that even if you can convince someone to pay $x amount for your home, if it fails to appraise for that amount (hint: the appraiser will use recent “sold” data from the county) the lender may not allow your buyers to get a mortgage for that amount.
I also strongly suggest that you hire a real estate attorney to help write the contracts and assist with closing. That way you can be sure your bases are covered.
In terms of marketing, get a nice sign for the yard and make sure the phone number is posted in large, clear numbers. I see a lot of signs where you’d have to get out of the car and get right next to the sign to read it. If you’re offering a commission to buyer’s agents, you may want to indicate that on the sign.
Flyers, flyers and more flyers! Don’t’ force people to call you. If they see what they’re looking for on the flyer they’ll call. Plus your neighbors can take a flyer to their friends and family who might be interested in the house.
Reserve a domain name with your address on it and make a web page featuring LOTS of pictures. I personally think that godaddy.com has the best prices.
Consider mailing postcards (or delivering flyers) to everyone in your neighborhood. Again, someone in the neighborhood might be looking to move up to your house, or they may have friends or family who are interested.
Finally, here are some helpful FSBO articles:
Should I Get An Agent or Sell My Home On My Own
P.S. If you don’t want to handle your own real estate transaction, give me a call at 303.887.1883 or email me at beth@bethskinner.com! I’m currently offering a special rate of 4% commission. This includes extensive Internet marketing, open house events, neighborhood mailings and lit drops, and qualified help right through the closing. I’m a no-nonsense Realtor who works hard for her commission!
Beth Skinner is a real estate professional who actually returns phone calls and emails! Click here to search the MLS for your dream home.
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