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