SPECIAL
REPORT:
Attention: For Sale By Owners!
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 FSBOs 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 FSBOs 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 brokers 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 FSBOs 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 pay off tenfold in the end.
Questions To Consider:
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 FSBOs 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 its a home, a car... anything,
is to have all the necessary information the prospective buyer needs
and to offer them options. Think about the last time you purchased
something of value, did you make a decision before 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...theyll 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? Dont
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.
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