Questions to Ask Before Trying a FSBO
As a DIY person, you get a two-part thrill from doing things yourself.
- It's satisfying to complete a project with your own two hands.
- The money you save is an exciting bonus.
If you're a DIY kind of homeowner, you may think selling your home is the ultimate do-it-yourself project. However, when it comes to selling your home, our REALTORS® know using the For Sale By Owner method is not necessarily the best choice. Marketing a home is exciting indeed, but experience tells us, your FSBO strategy will likely cost you more money than you save on sales commissions. Ask yourself these questions.
Do you know how to prepare your home to get the best price?
When you prepare your home correctly, you get more lookers and a better price. When you're selling a house you've lived in for a long time, it's easy to become oblivious to faded paint, broken tiles, and other conditions in need of attention. Little problems make your home less attractive to buyers. Any offers you receive will likely reflect anticipated repair and upgrade costs.
A real estate professional would walk through your home and recommend pre-listing adjustments such as repairs, decluttering, depersonalization, staging and curb appeal enhancements.
Are you sure about your listing price?
If your price is too high, buyers may quickly scan your listing then move on to more reasonably priced homes. The "2017 NAR Profile of Home Sellers and Buyers" revealed that 15 percent of FSBO sellers had difficulty pricing their homes. REALTORS® recommend comparative market analyses of similar homes sold and pre-listing appraisals to resolve difficult listing price issues.
Do you know how to market your home?
The NAR study found that many DIY sellers relied on yard signs and relatives to get the word out. Twenty-eight percent didn't market their homes at all. While some listed via MLS and Facebook, most FSBO online marketing stats were surprisingly low. This approach can be problematic since 51 percent of buyers found their homes online.
If real estate professionals make marketing look easy, it's because they have experience and professional resources. Real estate professionals list on MLS sites, Agency websites, and social media, and they have a built-in client base. They also have an agency budget to market homes via print media, direct mail, online videos and other sources.
Do you know how to qualify a buyer?
Unless a potential buyer has a pre-approval letter (not a pre-qualification), you shouldn't get too excited when they come to tour your home. Pre-approval means a lender has reviewed their financial and credit data and decided they are mortgage-worthy. While that letter won't guarantee a mortgage approval, it lets you know they're a serious buyer.
Do you know how to seal the deal?
Each element of your negotiation/sales process--offers, counter-offers, sales agreements, closing documents--require written contracts. Each contract outlines seller and buyer duties, responsibilities, and the steps you must take to make the sale a reality. When you do it all DIY, you might end up hoping for the best as you sign off on a contract written by the buyer's attorney.
Are you willing to accept less?
NAR's 2017 study determined that professionals negotiated better sale prices. The average home price for an FSBO sale was $190,000 while homes listed and sold by real estate professionals went for an average of $249.000.
Selling Your Home in the DFW
Selling a house can be far more complicated than you imagine, but our professionals are ready to assist you. Contact us at RE/MAX DFW Associates when you're ready to list your home for sale in the Dallas - Fort Worth real estate area.