| Each year many homeowners decide to maximize | | | | with an onslaught of buyers, including savvy investors |
| the profit on their home sales by selling it For Sale By | | | | and realtors, who perceive FSBOs as targets for low |
| Owner. At first glance, this is the most tempting | | | | balling? 3) Do I know how to market my property |
| option to most homeowners especially in the current | | | | properly? 4) Am I familiar with the trends in the |
| real estate market with its rapid appreciation rate. | | | | national real estate industry as well as my local real |
| Why pay substantial broker fees when they can | | | | estate market? 5) Am I prepared to offer financing |
| pocket several thousand dollars themselves? While | | | | options to the buyer? 6) Will I be dealing with only |
| this attitude is completely understandable it doesnt | | | | pre-qualified buyers? 7) Am I prepared to answer |
| realistically reflect the services a professional realtor | | | | questions about financing? 8) Do I fully understand |
| truly does offer. | | | | the disclosure process and legal ramifications for my |
| Last year, according to the National Association of | | | | state? 9) Do I have the skill-set to successfully |
| Realtors Profile of Home Buyers and Sellers, 13 | | | | negotiate the handling of legal contracts, agreements, |
| percent of all home sellers chose the FSBO route. | | | | and any disputes with buyers before or after the |
| More telling than these numbers, is the fact that one | | | | offer is presented? 10) Am I familiar with competent |
| third of all FSBOs sold their homes to someone they | | | | professionals that will be involved in the transaction |
| knew prior to the transaction which means that the | | | | such as title, home inspectors, appraisers, escrow |
| actual figure of FSBO transactions to strangers is | | | | company and their fees? 11) Am I able to project |
| realistically at eight percent. This is a significant | | | | and account for all the hidden costs, time factored in, |
| downward trend from 18 percent eight years ago. | | | | marketing costs, and fees paid? |
| Even more telling was that only half of last years | | | | The above items are a few of the factors that the |
| FSBOs, according to the article, plan to go it alone | | | | home seller should consider before selling his home on |
| again. Why? Many FSBOs are not aware of the | | | | his own. Also, one important item to keep in mind is |
| increasing complexities of the transaction process, | | | | that very much like the title of Harvey Mackays |
| especially in California, with more complex disclosures | | | | famous book, Swim With The Sharks, real estate is |
| and legal requirements required than ever before. In | | | | very competitive and the buyer is just as equally |
| addition, they were often unprepared for the | | | | motivated to get the lowest sales price, with the |
| required time to market and show their property, the | | | | most concessions as the seller is to get the highest |
| competitiveness of the real estate industry, and | | | | sales price the market will bear. |
| awareness of the various fees required for outside | | | | Most importantly, the facts are, sellers make more |
| consultants, inspectors, appraisers, title companies, | | | | money when they use a real estate professional. |
| escrow and loan officers. | | | | According to the National Realtors Association |
| Of course, this does not mean that selling your home | | | | survey, Homes sold with the assistance of a real |
| via FSBO is not a good option for some home sellers, | | | | estate professional in 2005 sold on average for 16 |
| in some cases it may be. However what it does | | | | percent more than FSBO sales. As in many other |
| mean is that you need a clear idea of what | | | | industries, realtors vary in experience and skill level. |
| responsibilities you will be assuming in contrast to | | | | Real estate is as populated with mediocre realtors as |
| hiring a professional realtor and calculating whether | | | | well as with excellent ones. However, hiring a skilled, |
| the costs and time invested will be worth it to you. | | | | full-time professional realtor, who is in the top twenty |
| Some questions to consider if you intend to FSBO: | | | | percent of his industry, to handle your sales |
| 1) Do I have the time, energy, skill-set and ability to | | | | transaction will be worth every penny of his or hers |
| devote in selling my home? 2) Am I prepared to deal | | | | broker fee. |