I’ve enjoyed keeping up with my readers and providing tips for real estate management and home improvement ideas, and today I am going to discuss FSBO. It’s safe to say that everyone at one time or another has thought about selling a home FSBO (For Sale by Owner) and it’s entirely true that some homeowners have been blessed with modest levels of success with regard to such undertakings. Today, in my continuing series of blog posts dealing with real estate tips, I would like to reach out to existing FSBO sellers or those who may be contemplating a FSBO. Most everyone can agree that a primary reason for selling one’s own home is to save a commission while still attracting a qualified buyer. Let’s for a moment examine some of the potential pitfalls associated with the whole process. You may want to ask yourself “What are some of the dynamics of the current market?” While a home seller may understand what is selling in their immediate neighborhood the complexity of the market involves more than the home next door. Market trends can distinctly vary across subdivision, city and sometimes county boundaries. Presently it is still a buyer’s market in most areas. As a result a seller who lacks sophistication in the pricing, staging, marketing and negotiation of their home is at a greater disadvantage. While the internet has come a long way in helping advertise the FSBO home, it does not replicate a bona fide MLS database in the ability to mine historical data and ensure accuracy while fundamentally advertising your home to thousands of agents. Most FSBO sellers report that they are ill prepared or uncomfortable with the logistical aspects of setting appointments, qualifying potential buyers, and contract negotiations. Potential buyers have been shown to spend less time in a home where the owner is present often times overlooking a homes true potential. Realtors on the other hand have a vested interest, their earnings, in achieving the best sale price for any given home. Their training and ethical responsibilities are geared toward maintaining integrity while aggressively marketing the property. Many homeowners have a difficult time handling the tension, complications and rejection often associated with a real estate transaction. A Realtor’s job includes navigating these complexities while buffering the homeowners from the inevitable distractions that accompany the home sale process. Agents understand the critical need to qualify a buyer and the required documentation needed to substantiate the buyer’s financial position. Agents are skilled negotiators and can discern potential pitfalls in the fine print of contracts. Their resources at targeting a specific purchaser demographic are broader and more sophisticated. Since they are not not emotionally invested in the home their guidance and advice is objectively presented. Statistically speaking a good number of FSBO’s will at some point seek the guidance of an experienced Realtor and most will eventually list with one. An important point to consider is if the market time accumulated during the course of a FSBO is worth the the “wear” factor of the home as perceived by the buyer population. While understanding that the concept of “nothing ventured nothing gained” is at play during most FSBO experiences, the ultimate goal is to become better informed.
Encinitas Realtor Linda Moore has been helping sellers improve their understanding with respect to the challenges of the real estate marketplace. Her home sale strategies have been yielding measurable and timely results concluding in the successful sale of many Encinitas Homes.