| Each year many homeowners decide to maximize | | | | 3) Do I know how to market my property |
| the profit on their home sales by selling it "For | | | | properly? |
| Sale By Owner". At first glance, this is the most | | | | 4) Am I familiar with the trends in the national |
| tempting option to most homeowners especially in | | | | real estate industry as well as my local real estate |
| the current real estate market with its rapid | | | | market? |
| appreciation rate. Why pay substantial broker fees | | | | 5) Am I prepared to offer financing options to the |
| when they can pocket several thousand dollars | | | | buyer? |
| themselves? While this attitude is completely | | | | 6) Will I be dealing with only pre-qualified buyers? |
| understandable it doesn't realistically reflect the | | | | 7) Am I prepared to answer questions about |
| services a professional realtor truly does offer. | | | | financing? |
| Last year, according to the National Association of | | | | 8) Do I fully understand the disclosure process |
| Realtors "Profile of Home Buyers and Sellers", 13 | | | | and legal ramifications for my state? |
| percent of all home sellers chose the FSBO route. | | | | 9) Do I have the skill-set to successfully negotiate |
| More telling than these numbers, is the fact that | | | | the handling of legal contracts, agreements, and |
| one third of all FSBOs sold their homes to | | | | any disputes with buyers before or after the |
| someone they knew prior to the transaction | | | | offer is presented? |
| which means that the actual figure of FSBO | | | | 10) Am I familiar with competent professionals |
| transactions to strangers is realistically at eight | | | | that will be involved in the transaction such as |
| percent. This is a significant downward trend from | | | | title, home inspectors, appraisers, escrow |
| 18 percent eight years ago. | | | | company and their fees? |
| Even more telling was that only half of last year's | | | | 11) Am I able to project and account for all the |
| FSBOs, according to the article, plan to go it alone | | | | hidden costs, time factored in, marketing costs, |
| again. Why? Many FSBOs are not aware of the | | | | and fees paid? |
| increasing complexities of the transaction process, | | | | The above items are a few of the factors that |
| especially in California, with more complex | | | | the home seller should consider before selling his |
| disclosures and legal requirements required than | | | | home on his own. Also, one important item to |
| ever before. In addition, they were often | | | | keep in mind is that very much like the title of |
| unprepared for the required time to market and | | | | Harvey Mackay's famous book, "Swim With The |
| show their property, the competitiveness of the | | | | Sharks", real estate is very competitive and the |
| real estate industry, and awareness of the | | | | buyer is just as equally motivated to get the |
| various fees required for outside consultants, | | | | lowest sales price, with the most concessions as |
| inspectors, appraisers, title companies, escrow and | | | | the seller is to get the highest sales price the |
| loan officers. | | | | market will bear. |
| Of course, this does not mean that selling your | | | | Most importantly, the facts are, sellers make |
| home via FSBO is not a good option for some | | | | more money when they use a real estate |
| home sellers, in some cases it may be. However | | | | professional. According to the National Realtor's |
| what it does mean is that you need a clear idea | | | | Association survey, "Homes sold with the |
| of what responsibilities you will be assuming in | | | | assistance of a real estate professional in 2005 |
| contrast to hiring a professional realtor and | | | | sold on average for 16 percent more than FSBO |
| calculating whether the costs and time invested | | | | sales." As in many other industries, realtors vary |
| will be worth it to you. | | | | in experience and skill level. Real estate is as |
| Some questions to consider if you intend to | | | | populated with mediocre realtors as well as with |
| FSBO: | | | | excellent ones. However, hiring a skilled, full-time |
| 1) Do I have the time, energy, skill-set and ability | | | | professional realtor, who is in the top twenty |
| to devote in selling my home? | | | | percent of his industry, to handle your sales |
| 2) Am I prepared to deal with an onslaught of | | | | transaction will be worth every penny of his or |
| buyers, including savvy investors and realtors, | | | | her's broker fee. |
| who perceive FSBO's as targets for low balling? | | | | |