For Sale By Owner Facts
7 Facts to Consider When Selling Your Home on Your Own…
1. Only 10% of homeowners successfully sell their home on their own.
2. Those that do sell their home successfully usually accept not only a lower price,
but they net less than if they had sold it with a professional & qualified real estate agent – especially in an uncertain market with high inventory…like today’s market.
3. Economics 101- Demand:
The more demand for a product, the higher the price & the less demand, the lower the price. If you run an advertisement to sell your home, you not only have to pay for the ad but you can only sell your home to those that see your advertisement. That limits demand!
4. All Realtors use the MLS.
As a result, not only is your agent working to sell your home, but so are all the other MLS members (agents), too. Your agent’s efforts are multiplied by those of all the other agents in the area. By sharing information about your home via the MLS with all other Realtors and brokerages in the area, you increase demand for your home. More demand = Higher Price!!
5. For Sale By Owner signs attract lowball offers.
Buyers know there is no commission involved and deduct that figure from your asking price plus a little more just to see how you will react to a low offer.
6. Deal Breaker items to consider:
How will you handle the phone calls. Who answers them? What do you say? How do you convince them to come look at your home when YOU are available to show it? How do you convince them to write an offer? What forms do you need? Is the buyer qualified? Do they have good credit, can they get a mortgage loan? Is your buyer’s loan officer competent and flexible? Do you need an escrow company or a lawyer? What termite inspection, home inspection, home warranties, title inspection? And when there is a challenge (a polite word for problem), as there always is, who handles it? As you can see, it isn’t easy and we’ve just barely scratched the surface.
7. Put the process in the hands of a professional who does this for a living!
It is definitely worth it to protect yourself in a real estate transaction not to mention making sure your house sells at the highest possible price in the fastest period of time!