FSBO-- FOR SALE BY OWNER
As you drive around and start looking for a home, you spot "For Sale By Owner" signs. Some owners think that selling their own home will not only save them money, but they also believe they have an advantage over the sellers that have their homes listed by a reputable Real Estate Agent. Before you make the decision to take on this important and legally complicated process, remember that most Real Estate Lawyers do not recommend selling your own home yourself in today's market.
Why? Let me give you a few points to consider:
1. You are limiting your exposure to potential buyers. Your exposure will be less than 10% of what a good Real Estate Broker/Agent will generate. This means that your house will take that much longer to sell on the market.
2. The longer a house is on the market, the lower the selling price becomes. Why? Because most buyers think that if the home has not sold after this long... there must be something wrong with it.
3. The selling/buying process begins AFTER the buyer leaves your house. Most sellers think that all it takes is for someone to see their home, fall in love with it, and the offer follows. REMEMBER, the buying process begins after they leave your house. If the buyers are looking on their own and are not under Representation Agreement with a good Real Estate Agent, they usually start to talk themselves out of the buying process as soon as they leave the house. If they are represented by a professional Real Estate Salesperson, they have someone who has been trained on how to overcome buyers remorse. This does not mean that we talk someone into buying a house that they are not sure of, but we are able to provide more information regarding mortgages, neighbourhoods, inspections, comparables, and much more, to quiet the nerves.
4. With limited exposure you will likely end up with a lower selling price. In order to generate the highest price possible for your house, selling means exposure.
5. Most buyers find it very awkward to negotiate or even to talk directly with sellers.
6. Lack of negotiating experience and lack of important information often will result in a lower selling price, or what's worse -- a bungles contract and possible lawsuits.
7. The majority of qualified buyers are working with experienced real estate professionals under Buyer Agency, you will be negotiating against an experienced professional.
8. Many serious buyers will pass by a FSBO home because they know that this is not the mainstream.
9. Expected savings in broker's fees will be reduced if you offer a selling commission to entice real estate sales representatives to bring potential buyers.
10. If you are planning to use a Lawyer to help you negotiate, and personally I would highly recommend this if you are selling you are trying to sell your own house, then the lawyer's fees will be considerably higher.
11. Only real estate sales representatives have access to the up-to-date market information. News reports cannot be compared to the specificity available to real estate sales people.
12. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions can 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. He/she can act as a great mediator. Lawyers MUST act only on their client's instructions and are not paid to negotiate.
Contact Betty Bartusevicius for more information or just to chat at 905 828 3434 or directly at 416 427 1875
Re/Max Realty Specialists Inc., Brokerage
Contact me by email; http://www.bettybart.com/AgentProfile/contactme.cfm
I can help you save time and money by shopping smarter;
There is no time like the present to begin your investigations into a property purchase or sale that will lead to sound decision making.
Experience is not expensive; it is Priceless.