Should you Sell Your Home as a For Sale by Owner?
Tags: financial, buyers agent, buyers, moving, sellers, firsttime homebuyers, real estate, realtors, for sale by owners
Many sellers object to the commission they must pay a real estate listing agent. Many people feel it's easy to sell a home, anyone can do it. If that is the case, they why do 85% of sellers use a Real Estate Profession to sell their home according to NAR Research and 79% of buyers purchased their home through a real estate agent or broker. If it was so easy, why wouldn't more sellers choose to save the commission.
Keep in mind, a home is one of the biggest investments most people experience in a lifetime. Even if you have owned several properties in your lifetime, can you afford to make that one slip-up that can cost you financially.
If you do decide to sell your home by yourself, called FSBOs (fizz-bos), then you must be prepared for a lot of hard work and hours and hours of your time. Here are five considerations you should review before you make the decision to sell it yourself
Do you have the ability to qualify the buyer?
Keep in mind that you will be opening your door to strangers. How do you know if they are qualified to pay your asking price. Real Estate Agents check with a mortgage lender prior to showing your home to a buyer. This can avoid wasting time with "lookyloos" who have a poor credit history. Some buyers even have Foreclosures in the recent past. The buyer might think because the Foreclosure was in another state, they can still buy in your county. All of this can waste precious time. The best advantage to selling your home is the first month it is on the market.
If there is noone available to show your property, how do you expect to sell it? Each Realtor is given a code they enter into the lockbox which records identifies each agent who enters your home. If the toilet overflows or the back door is left unlocked, there is a record of the Realtor responsible. Don't think this doesn't happen. It does.
Do you have a way for potential buyers to view your home all day?
Can you advertise widely both locally and nationally.
Buyers in the Myrtle Beach area often come from other states. Many buyers are even located out of the country (i.e. Canada). Advertising with a For Sale sign in the yard and an add on Craigslist is no longer enough. How proficient are you with computers? Realtors advertise on thousands of websites and can include an unlimited number of photos of your home and the surrounding area. They generally include a map with directions, as well. Advertising alone can take hours and hours of preparation. The Realtor will often have a sign in your front yard (if it is permitted by your covenants) which will include a phone number for easy reach and often an email if the buyer prefers written contact.
Do you know the competition
The first step in listing your home is pricing it correctly. This is the most common mistake FSBOs make. Since they have already indicated that they want to avoid paying a commission, they often overprice their home as well. They may make an analysis of a few homes that have sold in the area, but rarely consider properties outside of their neighborhood. Realtors make a Comparative Market Analysis (CMA) of similar homes in your area--not just your neighborhood. Listing Agents are better equipped in pricing your home for sale. A Realtor is NOT emotionally attached to the home and can better view the home's assets from a buyer's viewpoint. Local Realtors are more knowledgeable about the pros and cons of other homes in your area.
?Can you negotiate effectively?
Realtors become expert negotiators through practice and education. They learn to negotiate with different personalities. Since they are not emotionally attached to your home, they can negotiate more effectively that the homeowner in most cases.
Are you aware of the Legal Issues that might arise?
What would you do if the Buyer tries to back out of a deal. That might involve months of precious time. Realtors prove due diligence during the evaluation of your property. This can include termite inspections, asbestos, faulty structure, roof condition, septic tank and well tests and many more. There are certain legal issues that must, by law, be taken care of before the closing.
You might be confident you can sell your home on your own; however, the buyer might not.
The buyer may not want to TRUST you in your ability to take care of all these issues. If the Buyer is working with a real estate agent, there may have been an agreement made that the Buyer would be responsible for the Commission to be paid to the Real Estate Agent. This could cost you the sale.
HomeSearchMyrtleBeach.com services Myrtle Beach, North Myrtle Beach, Cherry Grove, Windy Hill, Crescent Beach, Ocean Drive, Murrells Inlet, Socastee, Conway, Loris, Longs, Surfside Beach, Socastee, Garden City, Little River and the surrounding areas.
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