For sale by owner (or FSBO) billboards are popping up in cities across the country. It seems that homeowners are becoming more determined to compete or eliminate the real estate agent. Every FSBO has their reason for not using an agent. Some have had less than pleasant past experiences with agents and feel they can do a better job of selling their property. Others must sell their home on their own, simply because of declining property values; they cannot afford to pay an agent. There is also the “experienced” home seller; they have bought and sold before, therefore they do not feel the need to share the profits with an Agent.
Whatever the reason, home sellers are determined to act as their own agent. Here are some tips for FSBO sellers to keep in mind when selling their home.
- CLEANING AND STAGE. You need to keep your home extra clean and clear clutter. Enhance the curb appeal by sprucing up the lawn and add some flowers for a pop of color. Use a pressure washer to clean the exterior (in our “red clay” country, many homes have a weathered or prematurely aged appearance due to clay formed around the bottom half of the exterior).
- ANNOUNCE. You must have your home in front of buyers. Dropping a sign in your front yard and telling the neighbors you want to sell won’t cut it. You must use the publications in your area and invest money in advertising. Also, you must get your house online. There are various resources online; some are free to homeowners, allowing you to list your property on high-traffic websites. This is a technology-based world, and buyers search for homes online. Avoiding the tech-savvy world is just avoiding potential buyers.
- PRICE ACCORDINGLY. The number one mistake FSBOs make is pricing the property. Most buyers prefer to hire the services of an agent (read my blog on buyer’s agents) and will not buy a home without representation. Buyers who are willing to buy direct from the owner have an intent in mind; ironically, the same intent as FSBO’s… SAVE MONEY. Don’t get greedy, because buyers are educated these days and have the power to attract comparable home sales in your neighborhood. Today’s buyer will also realize that YOU are not paying an agent, so they expect their property to be priced much lower than a listed home.
- LET A BUYERS AGENT SELL YOUR PROPERTY. Some FSBOs understandably feel that the Agent is the “enemy.” Homeowners are often inundated with calls from agents requesting to list the home; Coupled with previous unpleasant experiences, this can cause the homeowner to become annoyed with the agents. Not all agents are looking for the listing. If you are clear in advance (and in print) that you will offer a percentage to a buyers agent, this will give you more exposure to your property. If an agent has a buyer and you want to sell, working together will produce the desired end result for everyone. It is true that you will have to sacrifice a part of your earnings; however, it can make the difference between “on sale” and “sale”. Having your house on the market will generate you ZERO income. Offering a percentage to a buyers agent will save you money since you won’t be paying a listing agent, not to mention it can reduce time on market which ultimately adds money to your pocket.
Ultimately, a listed home is likely to sell faster and for a higher amount than a FSBO property. The key is to find an agent that works with youand for you. His prospective agent should be able to offer a guarantee, which will release him from his listing contract in case he feels he is not fulfilling his obligations.