House For Sale by Owner FSBO
Homeowners often consider selling their homes themselves and attempt a for sale by owner sale FSBO. Now there are quite a few for sale by owner websites that a home owner could use making this daunting task a little bit more feasible. What most home owners don’t realize is that there is quite a bit of time required to do it themselves. In doing this the home owner is usually trying to save money by not having to pay a commission to a realtor. When using a For Sale by Owner FSBO Company the home owner is actually paying for the ability for their house to be listed on the local MLS (Multiple List System) database that realtor’s use. What they don’t realize is they are going to have to pay a commission to a home buyer’s agent or else no agent will bring them potential buyer. So the reality is that they will have to pay half of the normal commission that would occur if they had hired a realtor.
House For Sale by Owner FSBO Hazards
What’s the downside of for sale by owner FSBO? The home owner will then have to blindly make changes to their home in order to “spruce” it up before putting it on the market. The difficulty in doing this is that they don’t have access to the recent sales that a realtor could provide. The home owner then has to decide what improvements to make that would increase the curb appeal but most importantly what changes would increase their profit, if any. The other big factor in doing for sale by owner is showings. When a realtor is hired they have the ability to show a property literally on any day at any time. The home owner now has the onus of taking time out if they’re schedule to show the home or put a lockbox on their house and let agents show their house without being present. Lastly the home owner has to determine a list price and this number will have great impact on what potential buyers even look at their house. If the listing price is not within reason based on market sales, the number of days on market will quickly add up and a perception or stigma will get created that something is wrong with the house.
Pre Listing Appraisal – For Sale By Owner FSBO Selling Tool
The for sale by owner FSBO seller should use some of their resources to order a pre listing appraisal so that they have a concrete understanding of recent sales and where their house fits within the market. The home owner will be saving money on commission paid to a realtor, so why not pay for a service that will help set their list price. A pre listing appraisal from a certified third party, can be a very valuable negotiating tool and provides documentation that supports both a listing and contract price. In conclusion, all the hard work that a home owner must put into selling their house themselves can be nullified by not having a competitive list price. The pre listing appraisal is simply the most powerful home selling tool that is usually not utilized.