My Thoughts on FSBO - For Sale By Owner

You might think that because this is a real estate blog, I'm going to tell you how terrible and difficult selling your home on your own is. In reality, it's not terrible, but it is difficult and time consuming, especially when you aren't entirely familiar with the process. Sure, you save yourself the money from having to pay real estate commissions, but more often than not, you sell your home for a lower price with the difference being more than the commission would have cost you. You also do a lot more work!

According to a report released by NAR (National Association of Realtors), "Some homeowners opt to sell their residence without a real estate agent to get around paying a commission and make more of the profit. According to the research, however, what they actually get is a lot of time spent hustling to make the sale and a final selling price that is less than what the market can bear."

You can read the full article here: NAR FSBO Article.

Here's an overview of what to expect if you decide to sell on your own, and where to start. Below each step, I'm going to write how an agent could help.

1 - Do a thorough walkthrough of your home from a buyer's perspective. If you were going to buy the home, what you find acceptable and not? Start a list of all things needing repair or improvement. Consider your landscaping, power-washing, condition of wood floors, or any wild paint colors. Make sure all light bulbs are working.

An agent can help you decide what needs to be addressed and what doesn't. They can look through an impartial lens and help you see things that you may not realize because you are there every day. They're also in touch with what buyers are looking for.

2- Make all necessary repairs or improvements. Do this before listing the property. Clean! De-Clutter! Organize!

An good agent knows tips and tricks to help with organization and de-cluttering!

3-Do your research for pricing and terms of sale and establish a fair and realistic sale price for your home. Get out and see the competition. Know what you're up against. Learn where buyers in your neighborhood are coming from and what else they're considering.

An agent will do an in-depth comparative market analysis (CMA) for your home. You may think that your home is the same as the one down the street because it has the same amount of bedrooms. In reality, there is so much more that goes into the price of home. From distressed sales to remodels, to sale trends by street. It's a very in depth process. Don't price incorrectly, it's the most important part of how seriously buyers and buyers' agents will take you.

4-Market your home. Market online, in newspapers, with postcards, and with home magazines. Prepare a budget for your marketing.

As an agent, I spend an average of $500-$1000 on marketing the home, starting with really nice professional photos. I prefer to also have floor plans drawn up. I also pay to have my listings at the top of searches on sites like Zillow, Truila, and Realtor.com (along with about a zillion others.)

5-Purchase a sign for your yard.

Agents will have professional sign installed on your lawn if your town allows.

6-Prepare a fact sheet outlining specific features of your home to potential purchasers. You should also have a seller's disclosure form, as well as any forms required by your state such as lead-based paint disclosure or open house check ins.

This is a part of my comprehensive marketing plan.

7-Schedule open houses on both weekdays (for agents - whichever day is customary for your town) and weekends (for the public). Make sure you advertise online and in local newspapers the week prior. You'll need to purchase open house signs, at least 4, to place strategically where you will have to most traffic on main thoroughfares. Don't forget to go take them down after each open house! Don't forget balloons!

This is the agents job, plain and simple.

8-Always have your phone on and always be available to answer questions or schedule showings. Prospective buyers will have questions and will want to see your home, sometimes without much notice. Make sure you respond promptly to inquiries and keep a log of names and phone number so you can follow up after each showing. It's also a good idea to be sure to have someone else home with you when someone is coming to see the home for the first time. Safety first!

Your agent will field all calls and organize and follow up with leads and schedule showings. Often times, they also have an assistant that helps with this to make sure nothing falls through the cracks.

9-Get ready to negotiate! Negotiation is a crucial part of a home sale. From negotiating price, closing dates, and included items, you must do this as impartially as possible. Remain calm and courteous to any agents or buyers you speak with.

Agents are trained on how to best negotiate on your behalf. They also have acute knowledge of other sales that are not yet public and market conditions. A poor negotiation can really hurt you if you don't know what to look out for.

10-Gather all of the proper paperwork to be signed by all parties. Make sure you are using the latest legal state contract as well as all supporting documents. You may consider using an attorney here to review all of your paperwork, but attorneys will typically not guide you on how to negotiate. Finalize the terms of the sale and be ready to follow up on all deadlines set within the contract in reference to deposits, inspections and walkthroughs.

This is what agents do! This is part of our daily routine and we know the paperwork and these deadlines well!

11-While you're doing all of this, be negotiating the sale of your new home! You're going to want the two closings to be as close as possible to eliminate the need to storage units or hotel stays.

If you're moving local, your agent will do all of the things you need as a buyer - free of charge!

So, after reading all of that, what do you think. Are you ready to sell by owner?

These opinions are my own. As always, if you have any questions or comments, I'd love you hear from you!

Jenna Raines

Berkshire Hathaway HomeServices

732-556-8894