Are you thinking about selling your house this year, but totally put off my the amount you would have to sacrifice in realtor fees? It’s totally doable to sell it yourself. FSBO {as all the cool kids are calling it} means a little more effort and time on your part, but it can also equate to thousands of dollars in your pocket.
I know it’s super hard to be objective when you’re the one selling the house, which is why it’s so important to take a step back and come at it from a professional standpoint. I looked at a home that was FSBO a few weeks ago and one of the “selling points’ that struck me as a little odd was how the seller was telling me about their hot tub:
Mavis: Is the hot tub included?
Seller: Yes! Do you like hot tubs?
Mavis: Not especially, I think I’d rather use the space for flower pots. 🙂
Seller: Oh, well, the hot tub has been really great for my marriage, you should try it sometime.”
Mavis: Umm, yeah, thanks for telling me you and your husband enjoy making whoppie in your hot tub… I can’t wait to use it now. {Okay, so maybe I didn’t say that, but HELLO… that was exactly what I was thinking!!!}
Let’s go ahead and put including personal information about HOW you used the house on the do not do list. 🙂
So, thanks to this lady, I’ve decided to make my own guide to selling your your FSBO:
- Decide whether you are willing to pay the realtor’s commission for potential buyers. Most realtors will not show potential buyers your home unless you are willing to pay them their commission. It’s a show me the money mentality, but it will mean more traffic through your door. If you decide to pay, make sure to advertise that.
- Standard house selling tips apply. De-clutter, CLEAN, complete repairs, etc. before you show the house.
- Advertise. Use facebook, for sale by owner websites {foresalebyowner.com}, and work message boards. The more people that know your house is for sale, the better.
- Know your home inside and out. How old is the furnace? What type of wood flooring, etc.? Potential buyers will want to know everything. You have to be upfront and honest. That’s the part realtors usually buffer your from, but be prepared to hear the good, bad, and ugly about your house.
- Hire an appraiser. The right price is essential. A hard copy appraisal lets buyers know that you didn’t arbitrarily come up with a sale price. An appraiser will cost you a couple of hundred bucks, you’ll still be in the black compared to realty fees.
- Do your research. Know what you legally have to disclose. Furthermore, get to know the closing process inside and out. You normally would have someone to walk you through this process. You’ll be on your own with FSOB.
- Hold your own open houses. Just like a realtor would, make sure to hold open houses {and advertise them} regularly. You want foot traffic. Make sure the place is clean and smells homey {apple cider or fresh baked cookies anyone?}
Have any of YOU sold your house on your FSBO? What worked for you? Better yet, what didn’t work?
~Mavis
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Kris says
We sold our home a few years ago FSBO. We did hire a company to put it on the MLS(Multiple Listing Service-websites realtors use) to get more visibility. We even paid the Realtors commission, which was still less than if we had used a realtor also. With a toddler it was hard to keep toys picked up, but the apple pie candle smelled yummy!
PattyB says
I am a retired Realtor, from both California and Colorado. In my opinion, if you are inclined to sell your own home, please line up an attorney, a mortgage/bank to qualify your potential buyers, and a closing company. Open houses are for the Realtors to get new customers because most visitors, if not all of them, either are not qualified for the house or are only lookie-loos. The only time I held open houses was if the owner insisted or thought that I would not sell the house otherwise. Advertising is how to get buyers. Pre-qualifying them with a mortgage company is finding out what they can afford and how much they are qualified to borrow for a mortgage. Better, have the mortgage actually QUALIFY the buyer. Have your house inspected so that you know what repairs you will be seeing in the purchase contract. Either do them ahead of time or wait to see if the buyer has anything else they want to add to the list. It is common practice to make a list and “negotiate” the list by agreeing to eliminate certain repair items (which they buyer doesn’t care about anyway) just to focus on the items that they really want. Once I held an open house where a woman came in (her friend was waiting in a pickup outside with the engine running), looked in every room as quickly as she could and then left. Scary. I informed the owners to be very careful in case these people came back to rob them. Open houses do not sell your home. It’s a lot of work and trouble to have one with zero results.
Remember to have a title search. The buyer will want to see this (do you think they will pay a couple of hundred dollars for each house they are interested in?) It is required in the contract.
Prepare your home for the market. Remove any personal photos, knick knacks, expensive items, PRESCRIPTION DRUGS, and extra furniture from the house. Think packing to move. Repaint! Neutral colors please. A buyer will look at a green wall and not buy the house because of that. Ya, I know. Most people have no imagination. I liked to use a “house stagger.” She/he is a professional and would come in and rearrange the house to show off the HOUSE… not the furniture, color of the wall, or any other distracting object that takes the buyers mind off the HOUSE instead of the family pictures, trophies, etc. Do you really want strangers to know what your kids look like and where they go to school? This service is what the REALTOR pays for out of her commission. It’s like advertising, also comes out of the Realtor’s commission.
Remove your pets to someone who will look after them. Be honest about your home being “pet free” or not. People have allergies and will not be happy if they buy your home and find out from the neighbors you had pets.
Do you have purchase contracts? They are the same as the Realtor uses. If it is not filled out correctly there may be legal implications even if you don’t sell your house. Every real estate office has an attorney. Get yourself a real estate attorney to look over the contract before it is an accepted document. Every one you get! Expensive? Yes. This also comes out of the commission.
Realtors have potential buyers meet at the office where a copy of their license is photocopied and kept on file. If I were to show a house, I would inform the office of where I was showing and with whom. Always the homeowner was not present. We had a safe word that if we were in trouble to call and say the safe word. And the office would know approximately what time I would be back. Safety, safety, safety. And remember, a real buyer will call a Realtor. The state regulates Realtors, Mortgage bankers, and the contract that is used. Realtors must satisfy continuing education requirements in order to keep their license. These classes are not free. This list only scratches the surface. The point is, a seller must educate themselves before jumping into the real estate market in order to protect themselves.
MTGayle says
I was ready to respond to your post today about FSBO’s but then read PattyB’s comment. Thank you Patty!!! I have been a licensed Real Estate Broker for 22 years & I am here to tell you I’ve come across a lot of weird, freaky & scarey things. Like Patty said, we must have continuing education every year. It’s like we go to school to learn all the many new ways one can be sued whether you are a Realtor or private seller. The State Board of Realty Regulations is primarily there to protect the Buyer. My advice is either do a ton of your own due diligence or hire a professional Realtor.
PattyB says
Also, go to this web site to see Realtors helping Realtors stay safe. http://www.hlntv.com/article/2014/10/01/beverly-carter-realtor-death-safety-tips