FSBO's:
I strongly recommend reading this linked article - "Real Estate Commissions Model"
The paper cites lots of other studies and includes some of the information involved with the real question of ... where is all the commissions going?
Happy Reading.
Saturday, January 20, 2007
Top 10 FSBO Tips and Advice
Below are what I consider the top 10 tops for selling your home on your own. Please feel free to comment on this post as any help to others attempting to sell their homes on the own would be greatly appreciated.
FSBO Tip 1.
You’ll need to understand the market.
You will need to get an idea of your local market area. Understanding what is hot and what is not in your market area is very important.
FSBO Tip 2.
It’s all about Timing.
Those that need to sell in a hurry for any host of reasons, will have less flexibility in the financial success with the sale of their home. Those that are not in a hurry can reap the benefits of waiting it out. Also if you are in a hurry to sell your home, FSBO may not be the way to go, unless you fully understand these top 10 tips and have the confidence and experience that a real estate agent may have.
FSBO Tip 3.
Put together a professional team of assistance.
The bottom line is that selling your home on your own is not an easy task. We are not talking about selling a car here. You should have an experienced attorney to close the deal or a title/escrow company to help you with the legal details. Ask for advise on how to show your home and/or have someone else who may have experience in doing so help you out. Potential buyers may not feel comfortable talking directly to the home owner when viewing a home. You may also want to team up with a lender. Prequalifying potential buyers can help the process.
FSBO Tip 4.
Determine an accurate market price.
This aspect is something that most think as easy. But the trouble is, if you are off by a few thousand dollars it can make all the different in the world. Comparing your price with what close neighbors sold their homes for recently seems like a good methodology but the truth is, the best methodology is to get a Comparative Market Analysis. Try housevalues.com or ask a friend or family member if they know anyone who is a real estate agency whereby they can get you this. You can just as easily call an agent yourself and request one. There should be no obligation on your part to get one. Simply tell them that you are reviewing correspondence from a few prospective agencies. Again, a market analysis is the best way to determine the market price of your home.
FSBO Tip 5.
Remember, you are not selling a home, you’re really are selling a house.
It is important to remove the emotions in selling your home. What you perceive to be a good family home, others may not.
FSBO Tip 6.
Prepping your home to sell.
The bottom line here is that keeping your home clean and neat is a must. It will be a first impression to those viewing the home. Generally prospective buyers will assume your cleanliness and neatness is how you kept every aspect of the home. These buyers don’t want to walk into something that may require a lot of work. Remove the clutter. Don’t thing that they wont check the closets or cabinets. Many do. If the room looks clean but the storage areas in and near that room are full of clutter the assumption will be that you simply quick cleaned the home to show it. Let the buyers see how neat and tidy you are even when they open a closet or cabinet. Even if you have to store things at a friend, family member or storage facility, remove all of the clutter. It helps.
FSBO Tip 7.
Marketing the home.
Start with a yard sign. Let the neighbors and those who drive by your home who may want a friend to move near them know about your home going up for sale. Word of mouth travels fast, especially considering email, cell phones, etc. Near the sign, place a holder with copies of a quick sell sheet so that drivers can pick up a sheet and get the quick highlights of the home. Be to the point on the highlights.
Consider taking ads out in the local newspapers and advertising online. RealtyMadeEasy.com is a growing national FSBO site where you can list your home for FREE. No strings attached.
FSBO Tip 8.
Understand the negotiating basics.
You do not have to be an expert here, but others will absolutely want to negotiate. Leave the emotions out and be firm but also open to listen to offers and counter offers. Talk to others, especially your “team” for advice. It is important to get advise from others, especially professionals as they will help you with this aspect.
FSBO Tip 9.
It is really important to qualify prospective buyers.
There are so many people out there who are just perusing the market and want to look at your home just to look. Many are not serious and many may not even be qualified to purchase the home. The last thing you want to do is bombard yourself with showings to people that are never going to purchase your home. So the best thing to do is have the get pre-qualified before a showing is offered. This is an easy task and other sellers will want this so it should be a standard. Don’t feel like you are asking too much of the potential buyer. And if they are pre-qualified, they will feel good about telling you so don’t be afraid to ask.
FSBO Tip 10.
Consider the MLS.
Each MLS may have differing rules and regulations so the recommendation is to contact a local MLS office if you are not having any luck on your own after a few weeks to a month has gone by. It may cost you some money but if you are looking to sell your home and are serious about it and not having luck, this would be the last step before throwing in the towel so to speak. The obvious next step if all of this fails is to contact a local and reputable real estate agency. And by the way, use someone local. They will understand the local market and generally have prospects already lined up in the area to begin showing the home right away.
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 2.5 License.
FSBO Tip 1.
You’ll need to understand the market.
You will need to get an idea of your local market area. Understanding what is hot and what is not in your market area is very important.
FSBO Tip 2.
It’s all about Timing.
Those that need to sell in a hurry for any host of reasons, will have less flexibility in the financial success with the sale of their home. Those that are not in a hurry can reap the benefits of waiting it out. Also if you are in a hurry to sell your home, FSBO may not be the way to go, unless you fully understand these top 10 tips and have the confidence and experience that a real estate agent may have.
FSBO Tip 3.
Put together a professional team of assistance.
The bottom line is that selling your home on your own is not an easy task. We are not talking about selling a car here. You should have an experienced attorney to close the deal or a title/escrow company to help you with the legal details. Ask for advise on how to show your home and/or have someone else who may have experience in doing so help you out. Potential buyers may not feel comfortable talking directly to the home owner when viewing a home. You may also want to team up with a lender. Prequalifying potential buyers can help the process.
FSBO Tip 4.
Determine an accurate market price.
This aspect is something that most think as easy. But the trouble is, if you are off by a few thousand dollars it can make all the different in the world. Comparing your price with what close neighbors sold their homes for recently seems like a good methodology but the truth is, the best methodology is to get a Comparative Market Analysis. Try housevalues.com or ask a friend or family member if they know anyone who is a real estate agency whereby they can get you this. You can just as easily call an agent yourself and request one. There should be no obligation on your part to get one. Simply tell them that you are reviewing correspondence from a few prospective agencies. Again, a market analysis is the best way to determine the market price of your home.
FSBO Tip 5.
Remember, you are not selling a home, you’re really are selling a house.
It is important to remove the emotions in selling your home. What you perceive to be a good family home, others may not.
FSBO Tip 6.
Prepping your home to sell.
The bottom line here is that keeping your home clean and neat is a must. It will be a first impression to those viewing the home. Generally prospective buyers will assume your cleanliness and neatness is how you kept every aspect of the home. These buyers don’t want to walk into something that may require a lot of work. Remove the clutter. Don’t thing that they wont check the closets or cabinets. Many do. If the room looks clean but the storage areas in and near that room are full of clutter the assumption will be that you simply quick cleaned the home to show it. Let the buyers see how neat and tidy you are even when they open a closet or cabinet. Even if you have to store things at a friend, family member or storage facility, remove all of the clutter. It helps.
FSBO Tip 7.
Marketing the home.
Start with a yard sign. Let the neighbors and those who drive by your home who may want a friend to move near them know about your home going up for sale. Word of mouth travels fast, especially considering email, cell phones, etc. Near the sign, place a holder with copies of a quick sell sheet so that drivers can pick up a sheet and get the quick highlights of the home. Be to the point on the highlights.
Consider taking ads out in the local newspapers and advertising online. RealtyMadeEasy.com is a growing national FSBO site where you can list your home for FREE. No strings attached.
FSBO Tip 8.
Understand the negotiating basics.
You do not have to be an expert here, but others will absolutely want to negotiate. Leave the emotions out and be firm but also open to listen to offers and counter offers. Talk to others, especially your “team” for advice. It is important to get advise from others, especially professionals as they will help you with this aspect.
FSBO Tip 9.
It is really important to qualify prospective buyers.
There are so many people out there who are just perusing the market and want to look at your home just to look. Many are not serious and many may not even be qualified to purchase the home. The last thing you want to do is bombard yourself with showings to people that are never going to purchase your home. So the best thing to do is have the get pre-qualified before a showing is offered. This is an easy task and other sellers will want this so it should be a standard. Don’t feel like you are asking too much of the potential buyer. And if they are pre-qualified, they will feel good about telling you so don’t be afraid to ask.
FSBO Tip 10.
Consider the MLS.
Each MLS may have differing rules and regulations so the recommendation is to contact a local MLS office if you are not having any luck on your own after a few weeks to a month has gone by. It may cost you some money but if you are looking to sell your home and are serious about it and not having luck, this would be the last step before throwing in the towel so to speak. The obvious next step if all of this fails is to contact a local and reputable real estate agency. And by the way, use someone local. They will understand the local market and generally have prospects already lined up in the area to begin showing the home right away.
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 2.5 License.
Friday, January 19, 2007
Share Your FSBO Success Story
We would love to hear any news regarding FSBO's and their success stories. If you sold your home as a For Sale By Owner (FSBO), why not share your story so that others can read about how you did this successfully and share in the success?
Selling your home as a FSBO is not easy! RealtyMadeEasy.com provides a free online classified advertising medium for FSBO's to market their properties, but it doesnt end their in terms of marketing your homes.
The reality is that it really isn't easy to sell your home as a FSBO. You really have to understand how to price and market your homes effectively. The truth is that real estate agenices do this well. Although I recommend trying to sell your home as a FSBO, I also encourage FSBO's to react quickly if they aren't experiencing any luck. Leaving a home on the market too long while decreasing the price, is a flag for potential buyers. Sometimes that flag is not justified, but nonetheless, it is a flag that could hinder or prolong the sale of your home.
But... people do it. They sell their homes on their own. And others would like to know how.
Take a moment and post your story here, sharing your tips and tricks so that others can share in the success!
Selling your home as a FSBO is not easy! RealtyMadeEasy.com provides a free online classified advertising medium for FSBO's to market their properties, but it doesnt end their in terms of marketing your homes.
The reality is that it really isn't easy to sell your home as a FSBO. You really have to understand how to price and market your homes effectively. The truth is that real estate agenices do this well. Although I recommend trying to sell your home as a FSBO, I also encourage FSBO's to react quickly if they aren't experiencing any luck. Leaving a home on the market too long while decreasing the price, is a flag for potential buyers. Sometimes that flag is not justified, but nonetheless, it is a flag that could hinder or prolong the sale of your home.
But... people do it. They sell their homes on their own. And others would like to know how.
Take a moment and post your story here, sharing your tips and tricks so that others can share in the success!
Sunday, January 7, 2007
New FREE Website to Help FSBO's
FREE Online FSBO Classifieds
Well, all the hoopla over the past year or so on how hot and heavy real estate has been and how crazy the dramatic appreciation in home prices these days has gotten me concerned. Why? Well, for many reasons of which I will expand on some of them here and now.
The average home sale in the town I live in, in Connecticut is around $400,000. The average real estate agency broker commissions is about 6%. That means roughly $24,000 goes to the broker for finding a buyer. That is a lot of money!
Is it deserved? Surely something is deserved, but I am not exactly sure that the amount correlates with the effort. But then again, I am not a broker. Of course, that doesn't mean I am without common sense. I do concur that selling your home on your own is no an easy task at all, even in a hot market. Home sellers need to understand how to market their homes and how to prepare their homes to market and more importantly how to price their homes. And if you are in a hurry for any of a host of reasons to sell your home, you must completely understand these points, otherwise, please re-consider using a broker.
In any event, I am not going to go on and on and completely debate this topic of concern to me just yet. I will save that for future posts. I want to reserve this first post on my blog to mention a very nice first step I am offering for future and current FSBO's. I have launched a website that offers totally free online classified advertising for FSBO's around the United States. No hidden fees, just free. Please check it out at http://www.realtymadeeasy.com/.
If you are looking to sell your home on your own, please feel free to list your home on our site.
If you are someone who has had success selling your home on your own, please provide a post on any information that the general public could use in attempting to also sell their home on their own. Leaving the high commission fees to the homeowner where feasible is something that can only boost the economy - another topic I will spew over in the upcoming months on this blog.
For now, I bid you farewell and look forward to any insight anyone can offer here.
The average home sale in the town I live in, in Connecticut is around $400,000. The average real estate agency broker commissions is about 6%. That means roughly $24,000 goes to the broker for finding a buyer. That is a lot of money!
Is it deserved? Surely something is deserved, but I am not exactly sure that the amount correlates with the effort. But then again, I am not a broker. Of course, that doesn't mean I am without common sense. I do concur that selling your home on your own is no an easy task at all, even in a hot market. Home sellers need to understand how to market their homes and how to prepare their homes to market and more importantly how to price their homes. And if you are in a hurry for any of a host of reasons to sell your home, you must completely understand these points, otherwise, please re-consider using a broker.
In any event, I am not going to go on and on and completely debate this topic of concern to me just yet. I will save that for future posts. I want to reserve this first post on my blog to mention a very nice first step I am offering for future and current FSBO's. I have launched a website that offers totally free online classified advertising for FSBO's around the United States. No hidden fees, just free. Please check it out at http://www.realtymadeeasy.com/.
If you are looking to sell your home on your own, please feel free to list your home on our site.
If you are someone who has had success selling your home on your own, please provide a post on any information that the general public could use in attempting to also sell their home on their own. Leaving the high commission fees to the homeowner where feasible is something that can only boost the economy - another topic I will spew over in the upcoming months on this blog.
For now, I bid you farewell and look forward to any insight anyone can offer here.
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