So you're thinking about selling? Or are you already firm in your decision and ready to list?
No matter where you stand, it can be intimidating and slightly daunting to think about all that has to be done for the house to be market ready, to consider proper marketing, pricing and ensuring everything checks out legally.
Many folks consider For Sale By Owner (FSBO) and while it sometimes works out, the amount of extra work and stress owners bring upon themselves is unnecessary. Here are just a couple major mistakes Sellers make when Selling By Owner:
1. Accepting the buyer with the highest bid without regard to other contractual terms.
2. Not properly handling multiple offer situations with multiple buyers.
3. Entering into an agreement with no earnest money deposit from the buyer, or a very small amount.
4. Entering into an agreement before verifying the buyer's financial ability to close escrow.
5. Not disclosing known material fact affecting the value or desirability of the property.
6. Not providing the buyer with legally required disclosures and obtaining buyers written acknowledgement of said disclosures.
7. Not excluding items from the sale that the seller wants to keep.
Aside from the above mistakes, FSBO's skip the Realtor to save money but are often undercutting themselves"
1. When considered the price of a home, Owners will try to avoid the 6% paid to Realtors but generally get more money from the sale of a home using a Realtor, according to the National Association of Realtors.
2. A Realtor not only spends money themselves hiring a professional photographer but has access to the multiple-listing service (MLS) where thousands of buyers can look at your home but FSBO's can't access this MLS and pay out of pocket to market their home.
3. A Realtor dedicates their time and energy on selling/marketing the home, hosting open houses and providing walk throughs but FSBO's usually find it difficult giving up time from work to show the home to all potential buyers.
4. Realtors become the middleman between buyer's agents, escrow and title companies whereas FSBO's must do all the negotiations themselves.
5. When it comes to legal matters, Realtors know the legal ins and outs of a home's sale but FSBO's who don't know the ins and outs could end up being sued.
All of these require time and money from the owner that would otherwise be done by the Realtor. Usually, a Realtor commission is far less than the amount the Owner would spend on marketing, legal fees and missed income on the price of the home.
Are you interested in selling your home but find yourself on the fence as to whether or not to use a Realtor? I'd love to have a no-pressure discussion this with you- I'll buy the coffee :)
Want to chat? Click here.