Homeowners clearly love and know their home better than anyone, and in a strong real estate market it’s very tempting to try and sell the home For Sale By Owner, also known as FSBO. Before we get into the 5 Tips Every FSBO Needs To Know, let’s look at some facts about FSBO’s from Realtor.org and Zillow.com before we go any further.
The National Association of Realtor’s have shown in studies that by listing with a Realtor the average seller will garner a higher profit to cover commissions and ultimately put more money in their pockets. In fact, the National Association of Realtors 2013 Profile of Home Buyers and Sellers shows the average FSBO sale price was $174,900, while the average sale price with a Realtor was $215,000. That’s a difference of $40,100. With the average commission of 6% ($12,900 on $215,000) that would be an average savings of $27,900 the sellers would have potentially saved by going with an Realtor.
ForSaleByOwner.com is right that FSBO’s sell faster and closer to asking price but they fail to mention this is caused by the significantly under priced home as well the price of the home being well below the market value. This is something Realtors know to avoid. In fact, a high percentage of FSBO’s eventually list their home with a Realtor in order to get the home sold. Unfortunately, by that time, the home is shopworn and stale. In most cases, the Realtor can still get a higher price but not as high if the seller would have initially listed with the Realtor.
If you are going to sell your home FSBO, below are 5 Tips Every FSBO Needs To Know before listing the home. We hope you avoid the above issues and list with a Realtor, but if you have made up your mind to continue as a FSBO, we hope this BLOG will help you.
- Price your home RIGHT the first time. Most FSBO’s do not have access to the MLS, nor the training/experience of running COMPS on their home to see what the current market value is. We here at Team SURGE highly recommend you pay for an appraisal by a highly qualified local appraiser to determine the value of your home prior to placing it up for sale. It will be well worth the few hundred dollars you will spend.
- Prepare your home for showings. This is one of the most important things a seller can do to sell their home. For more information check out Team SURGE’s BLOG site for more information.
- Market your home correctly. Zillow.com has several great articles on this that can help you out greatly.
- Only work with Qualified Buyers and/or buyer agents and never write an offer for the buyer.
- Only work with a local, well known, Title Company. They are the ones that will issue title insurance (which in Utah, the seller pays for this expense), prepares closing papers, and closes the transaction.
There is a wealth of information out there, so make sure you learn as much as you can before going into this alone, and as always, Team SURGE with Keller Williams is here to help you. Call anytime, our number is 435-547-4266