According to the National Association of Realtors, homebuyers purchased about 5.51 million existing homes in 2017. Data by the U.S. Census Bureau indicate that 612,000 newly constructed homes were also sold.
The 2018 National Association of Realtors Profile further reports that For Sale By Owner (FSBO) accounted for seven percent of the total sales. What does that mean for FSBO homes?
Whether the statistics are accurate or exaggerated, FSBO has a stake to control in real estate. One reason why FSBO sales are usually low is that many homeowners shy away from the convolutions of selling a property. However, it is not impossible to sell without involving a Realtor.
Do you have a home that you are looking to sell? We will advise you on how to do it yourself.
Let’s first look at the perks of FSBO.
Benefits of FSBO
Here are some of the advantages of FSBO you need to know.
1. No Commissions
The hope for every property seller is to generate the highest revenue possible from the sale. You can achieve this by bypassing real estate agents. Involving them means parting with about 5 to 7 percent of the proceeds in commission.
2. You Gain Full Control over the Sale
FSBO allows you to make all the decisions. You don’t have to go by anyone’s opinions regarding pricing, marketing, negotiation, and so on. However, you must be knowledgeable to avoid making costly mistakes.
3. You Can Make Maximum Commitment
Real estate agents deal with multiple sales at a go. They sometimes focus on properties that are likely to sell quickly or give them a handsome commission. When selling by yourself, you can devote maximum energy and time to making the sale.
4. In-Depth Knowledge about the Home
No one knows your house better than yourself. You can champion for it from an owners perspective, unlike an agent who has never lived in it.
How to Do an Ideal FSBO
The following guideline will help you to sell your FSBO homes without the aid of a real estate broker.
1. Price Your Home Reasonably
First off, understand the value of your home. You can utilize the internet to have an idea of the average price of similar properties in your neighborhood.
Consider any noteworthy improvements you have done that can raise the price. Water damage can degrade your house significantly, but you can learn some valuable selling points from this website.
Let your asking price be realistic to avoid chasing away potential home buyers.
2. Pursue MLS Listing
A multiple listings database (MLS) is a system that shows properties for sale in the real estate industry. It’s open to realtors, but prospective buyers in some areas can also access it.
You can pay a real estate agent a flat fee to list your property instead of paying a percentage of the eventual sale. Search the internet for ‘flat fee MLS’ to find a Realtor who offers the service in your region.
3. Advertise Your Property
Market using posters, brochures, social media, Craigslist, FSBO.com, and so on. There is no limit to the advertisement methods you can use. You may incur some costs, but they will be an insignificant percentage of a real estate agent’s commission.
4. Include Essential Information in Your Ads
An ad that lacks the selling points of a product does not sell. The same happens when selling your home.
Include the location, price, number of bedrooms and bathrooms, lot size, and what makes the house special. Borrow ideas from Craigslist and Realtors’ websites for an overview of the essential details in a real estate ad.
Specifics like the finishing or size of windows may look trivial, but they entice some of the potential buyers.
5. Clean the House Thoroughly
Whether you are holding an open house or you are showing the house to interested buyers, create a good first impression. Let them get the best image of your home.
Clean the rooms thoroughly including scrubbing the linoleum, bathroom floors, and kitchen counters. Shampoo the carpets and wipe the available appliances.
Also, keep most of your personal effects out of sight. The aim here is to leave the house sparkling clean and uncluttered.
6. Schedule an Open house
An open house in real estate refers to a period during which a house stays open for prospective buyers to view it. Create awareness about the open house through advertising and networking with friends.
Be sure to have refreshments for the attendants and prepare some brochures for them to take home.
When the house is full of visitors, run a Facebook live stream as you sell your home to the audience. The video might spread spontaneously, and you start receiving calls within no time.
If you stay at home during the day, potential buyers can find you there. Otherwise, keep a key in a lock box and identify the individuals who visit before disclosing the code.
Be sure to answer phone calls and call back in case you are unavailable.
7. Perform Negotiations Diligently
Negotiations come in the form of a contract. If you disagree, you can review it and resubmit it to the buyer. Consider involving an attorney if you aren’t conversant. Don’t express your financial woes lest the buyer takes advantage of your circumstance.
8. Comply with the Law
Some laws apply across the country while others control property sales at the state level. For instance, it is an offense to discriminate against a buyer for reasons like religion or race. Familiarize yourself with every regulation and policy.
You may be lucky to find some sample agreements online. You can borrow from them. However, seek the approval of a real estate attorney to be on the safe side.
FSBO Homes – Final Thoughts
The perks of selling your home through FSBO are evident. You save a tremendous amount of money by keeping brokers at bay. However, the effort is not worth if the listing price is absurdly low.
For people with some background in real estate, FSBO is an excellent way of selling property. You can close the sale like any other Realtor with a little help from a real estate attorney.
What’s your opinion on FSBO homes? Feel free to leave your comment below.