Friday, July 9, 2021 / by Flr Team
Selling your home is a time consuming process, especially for those who think they can do it on their own, known as For Sale By Owner (FSBO). The involvement is a highly detailed process that requires a lot of expertise and knowledge to navigate it effectively. From gathering information through market research to reviewing legal documents, handling negotiations, and more.
To help you better understand the lengthy process or how much time and effort it takes to sell your own home, here are a few things you need to think about before putting that ‘For Sale’ sign up in the yard.
1. Making a Good First Impression: While it may sound elementary, there are a lot of proven best practices to consider when preparing a house for sale.
-Do you need to take down any of the personal art?
-What’s the right amount of landscaping to boost your curb appeal?
-What wall colors are most appealing to buyers?
Some may try to do this on their own, but you might invest capital and many hours into the wrong things. Your time is money- don’t waste it. A REALTOR can help steer you in the right direction based on current market conditions. Being that we are in a seller’s market, you don’t want to delay listing your home by focusing on the things that won’t change your bottom line. You want to lean on an agent to capitalize on today’s low inventory.
2. Pricing It Right: Real Estate professionals have the knowledge and experience in knowing what sells and how to maximize your profit. They know the comparable homes that have sold in your area and how to price it based on that data.
In a FSBO scenario, you’re working with no expertise, so you’ll have to do your own homework on how you feel the price should be for that area and the condition of the home. Even with your own research, you may not find the most up-to-date information which could risk setting an inaccurate price. If it’s priced too high you could turn away buyers before they even step foot in the door. It can also lead to problems with appraisal.
3. Maximizing Your Buyer Pool (and Profit): FSBO can actually net less profit than sellers who use a REALTOR. One of the factors that can drive profit is effective exposure. The more buyers that view your home, the more likely a bidding war will develop. According to the National Association of Realtors (NAR) the average house for sale today gets 5 offers. Using a professional to boost your exposure may boost your sale price as well!
4. Navigating Negotiations: When selling your home on your own (FSBO), you’ll have to handle all of the negotiations. Here are just a few of the people you’ll work with:
-The buyer, who wants the best deal possible
-The buyer’s agent, who will use their expertise to advocate for the buyer
-The inspection company who works for the buyer and will almost always find concerns with the house
-The appraiser, who assesses the property’s value to protect the lender
As part of their schooling, REALTOR’S are taught how to negotiate every aspect of the Real Estate transaction and how to mediate potential snags that could pop up. For example, when appraisals come in low and in countless other situations, they know how to address the seller and buyer emotions that come with it. Trying to navigate this process on your own takes a lot of time so it’s better to have someone in your corner.
5. Juggling Legal Documentation: Speaking of time, consider how much free time you have to review the fine print. Just in terms of documentation, disclosures and regulations are now mandatory. It can be hard to know and truly understand all of the terms and requirements. Instead of going through all of that alone, use a REALTOR as your shield and advisor to help you avoid potential legal missteps.
At the end of the day, selling your home on your own is a lot of responsibility. It’s very time consuming and requires an immense amount of effort and expertise to ensure it is getting done correctly. Before you decide on selling your home yourself, consider connecting with us at Florida Lifestyle Realty to discuss your options and learn more about how we can make sure you get the most out of your sale.
Florida Lifestyle Realty