So, I have been talking with some sellers who are trying to sell their home without the use of an agent, we call them FSBO’S or For Sale By Owners. Now, there is nothing wrong with that and certainly the idea of saving money is a good one. But the thought of selling one’s home by ones-self is not a good idea for everyone.
So let’s start here. What are some of the reasons that people want to sell their home by themselves? We will cover reason #1 is this article.
Reason # 1 –To Save Money. Hey, I am all for that. I am the type of guy that does everything I can by myself and usually if I cannot do it, I learn how (case in point, my blog (www.TheKilberGroup.com.) But even then there are times when I pay others to do work for me, like car stuff…I’m just not into changing brakes, hey it helps the economy anyway. But do you really save money by selling your home yourself? Forsalebyowner.com even has a little calculator on their site showing you how much you could potentially save, Sounds great huh?
Well, not so fast. NAR studies have shown that typically sellers are able to get 8-10% more for their homes when they use an agent. So even if you pay 6% commission you are still making 2-4% more than if you sell the home by yourself. Maybe we need a calculator to show those figures? So why is this, why are people (typically) able to get more for their home when they use an agent?
1. For starters (We are going to hope that you are using an agent who has a clue and knows what they are doing) your agent is experienced at negotiating with buyers. Your agent is there to negotiate for YOU! Most buyers of FSBO homes know you have little or no experience at this and they know you are not paying a commission. Guess what, they are going to undercut your price from the start because of these things. Sure you can stand firm and not budge, ever, no matter what…but that is really not negotiating now is it? Remember the goal is to sell. It doesn’t help if you save 10k in commissions if you loose it because you don’t know how to negotiate properly. Your agent, who has negotiated homes sales time and time again, knows when you need to stand firm, when you need to give a little and when they can get you more than you were asking. I have a CNE (Certified Negotiating Expert) designation and take the sale of your home as if it were my own. You can bet I am going to fight for your $$…that’s my job:) Although your agent may negotiate like they were selling their own home they do not have as big of an emotional investment in the home like the owner does. This can often times get in the way of thinking clearly when negotiating.
2. Your agent knows the market, they have been around the block (no pun intended) they pay attention (or they should) to what the market is doing, has done and what it may do tomorrow. They know the value of your home and how much they can or should be able to get for it. I know, I know you can find all this on the Internet, because the Internet always tells the truth…right? Your agent is still on the ground, in the trenches day in and day out selling homes. They know the general feel of buyers and sellers. This is something that most people just do not pay attention too like a Full-Time Realtor does. All of this can help you get more $$ for your home.
3. Your agent knows when you have received a “bad” offer and can convey those facts to you. You may recognize a low offer, but can you always recognize a “bad” offer? Your agent can help point out “Red Flags” in your buyers offer that you do not recognize. Even with an agent the ultimate decision to accept or reject any offer lies with the seller but an agent can at least “alert” you to some “things” that they notice with the offer. Again experience is key. If your agent has sold “hundreds” of homes do you think that just maybe they have been in a situation or two that could help save you thousands of dollars?
Is it always wrong for someone to sell their home by themselves? No, not always, but in many cases the owner just does not have the level of expertise that a seasoned agent has. That alone can be worth far more than our little calculator can show.
For Sale By Owner (FSBO)--Part 1
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