Why People
Are Afraid To Buy From You!
Many homeowners believe that to maximize their
profit on a home sale they should sell it themselves. At first glance, they
feel selling a home is simple and why should they pay a broker fees for
something they could do themselves? In fact, close to 25% of all the homes sold
last year were sold for sale by owner (FSBO).
However, close to half of the FSBO’s said that
they would hire a professional next time they sold. Thirty percent said they
were unhappy with the results they achieved by choosing FSBO. Why?
Many FSBO’s told us that the time, paperwork and
everyday responsibilities involved were not worth the amount of money they
saved in commissions. For others, the financial savings were even more
disappointing. By the time they figured the amount of fees paid to outside
consultants, inspectors, appraisers, title lawyers, escrow and loan officers,
marketing, advertising... they would have been better off having paid the
broker’s fee which would have included many of these charges up front.
Selling a home requires an intimate understanding
of the real estate market. If the property is priced too high, it will sit and
develop a reputation for being a problem property. If the property is priced
too low, you will cost yourself serious money. Some FSBO’s discovered that the
lost money as a result of poor decisions outweighed the commission.
Before you decide to sell FSBO, consider these
questions and weigh the answers of assuming the responsibility versus employing
a professional. A little time spent investigating up front will
Do I have the time, energy, know-how, and ability to devote a full
forced effort to sell my home?
One of the keys to selling your home efficiently and
profitably is complete accessibility. Many homes have sat on the market much
longer than necessary because the owner was unwilling or unavailable to show
the property. Realize that a certain amount of hours each day is necessary to
sell your home.
Am I prepared to deal with an
onslaught of buyers who perceive FSBO’s as targets for low balling?
One of the challenges of selling a home is screening
unqualified prospects and dealing with lowballers. It often goes unnoticed...
how much time, effort and expertise it requires to spot these people quickly.
Settling for a lowball bid is usually worse than paying broker commissions.
Am I offering financing options to
the buyer? Am I prepared to answer questions about financing?
One of the keys to selling, whether it’s a home, a car...
anything, is to have all the necessary information the prospective buyer needs
and to offer them options. Think you had all your ducks in a row? By offering
financing options you give the home buyer the ability to work on their terms
and open up the possibilities of selling your home quickly and more profitably.
A professional real estate agent will have a complete team, from lenders to
title reps for you to utilize...they’ll be at your disposal.
Do I fully understand the legal
ramifications and necessary steps required in selling a home?
Many home sales have been lost due to incomplete
paperwork, lack of inspections or not meeting your states disclosure laws. Are
you completely informed of all the steps necessary to sell real estate? If not,
a professional would be a wise choice.
Do I have the capability of handling the legal contracts, agreements and
any disputes with buyers before or after the offer is presented?
Ask yourself if you are well versed in legalese and if you
are prepared to handle disputes with buyers. To avoid any disputes it is wise
to put all negotiations and agreements in writing. Many home sales have been
lost due to misinterpretation of what was negotiated.
Have I contacted the necessary professionals....title, inspector (home
and pest), attorney, and escrow company?
Are you familiar with top inspectors and escrow companies?
Don’t randomly select inspectors, attorneys, and title reps. Like any
profession there are inadequate individuals who will slow, delay and possibly
even cost you the transaction.