The time has come and you need to sell your home. Now you are faced with two choices:
- Hire a Realtor and pay a 6% commission on the sale price of the home to them, or
- Save the 6% commission and sell it yourself.
Which choice do you make?
It depends on your situation. Either choice is the right choice as long as it’s your choice.
Selling a home yourself is no simple matter. There’s much more to it than making color flyers to hand out at the local grocery store, throwing a For Sale By Owner sign in the front yard, and putting an ad on Craigslist and Zillow.
You should ask yourself a few questions first before deciding to sell your home yourself.
Do I have the right personality and experience?
Selling your home yourself requires someone who is forward, honest, and direct. You need to have good negotiating skills, the ability to say ‘No‘, and the ability to sell. If you have this type of personality then you may be a good candidate to successfully sell your home FSBO.
Do I have time?
From showing houses every day of the week, negotiating with potential buyers, scheduling contractors and vendors, to meeting contractual deadlines, a real estate transaction is a very time time consuming process. If you don’t already work full time, or have someone available to help, then you may be a good candidate to successfully sell your home FSBO.
Am I tech savy?
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial. Do you know how to market and advertise online? Do you know where buyers come from?
- 43% on the internet
- 9% from a yard sign
- 1% from newspapers
Recent studies have shown that 92% of buyers search online for a home. That is in comparison to only 28% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?
If you know how to use the computer, how to buy internet ads, and how to be found in search engines and SEO, then you may be a good candidate to successfully sell your home FSBO.
Do I know who my prospective buyer is?
Ask yourself this simple but crucial question: What salary does a buyer have to make per year to buy my house?
You must know the answer to this because in order to qualify for a mortgage a buyer has to be able to afford it. The first question you have to ask each buyer is “How much do you make a year?”
If they don’t meet this minimum requirement, they shouldn’t be looking at your house because they could never buy it. They will be wasting their time and yours.
If you don’t have a problem asking someone how much they make, or asking for a pre-approval letter before seeing your house, then you may be a good candidate to successfully sell your home FSBO.
Can I negotiate well?
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to sell FSBO.
- The buyer who wants the best deal possible
- The buyer’s agent who solely represents the best interest of the buyer
- The buyer’s attorney (in some parts of the country)
- The home inspection companies which work for the buyer and will almost always find some problems with the house
- The appraiser if there is a question of value
- Your bank in the case of a short sale
If you can be a tough negotiator, and say ‘no’ without feeling bad or jeopardizing the sale or your position, then you may be a good candidate to successfully sell your home FSBO.
Deciding to sell your home yourself comes down to one thing: money. Specifically, saving the real estate commissions. But don’t forget:
Buyers know the only reason you are selling FSBO is because you want to save the real estate commission. They will always want to take half and split the difference with you.
If you think you can do everything discussed above successfully, then go for it!
Just keep keep this in mind:
When selling your home FSBO, you don’t save the real estate commissions. You EARN them.