It seems that all you hear about lately is how hot the real estate market is: home sales are up, demand is high and inventory is low. These conditions often entice people to do For Sale By Owner.
We spend a lot of out time working with For Sale By Owners throughout the week. When we have a buyer looking for a specific type of home, it’s important to go out and find homeowners who are selling themselves because these homes aren’t listed in the MLS.
If you decide For Sale by Owner is the route you wish to take, we want to help you. We have a “For Sale By Owner Survival Guide” to help you better market and sell your home.
Nearly 12 percent of all sold homes each year are For Sale By Owner, proof that it can be done. Before you commit to selling on your own, though, it’s important to take into consideration some important factors.
When you show your home, you are opening it up to strangers. While some are potential buyers, it’s hard to identify who is a serious buyer with cash funds or a prequalification from a mortgage lender and who is a potential ‘bad buyer.’ Not only do you run the risk of possibly accepting a bad offer, you also could be at risk of letting burglars into your home.
When you hire a real estate agent, they handle the legal matters of the transaction. While the agent hopes to avoid any problems, they will have brokers insurance incase any legal issues were to arise. As a For Sale By Owner you, unfortunately, do not have the ability to protect yourself in this way.
One of the number one reasons homeowners choose to sell on their own is because it seems to be the most economical choice; you save the 6% commission you would give to the realtor. Statistically, though, For Sale By Owner homes sell for about 18% less than if the home was sold by a real estate agent. As opposed to saving 6%, you are actually losing 18% of the sale.
In addition 80 percent of all successful For Sale By Owners said they would never do so again. They expressed the process was too much: marketing on their own, making time for the different showings, etc. Of those successful sales, 50 percent already had a buyer lined up, whether it was a family member or friend; that means only half were successful in marketing to buyers in the market.
These are all important factors to consider when thinking about selling on your own. If you do choose the For Sale By Owner route, please keep us in mind. We would love to help you with any questions you have and also matching up a potential buyer for you. Thank you for watching!