If plan on selling your home on your own, make sure you avoid these seven “For Sale By Owner” mistakes.
If you've decided to list your home as a "For Sale By Owner" (FSBO) property, congratulations. Some FSBO sellers are able to be successful, but many make mistakes and even fail to sell their homes. Today, I'll go over seven common FSBO mistakes you should avoid.
If you’ve decided to list your home as “For Sale By Owner,” congratulations. It can be a challenge, but there are a few people out there who can do it.
That said, according to the National Association of Realtors, 90% of all homes that were sold last year were represented by an agent, Realtor, or real estate professional.
Of the 10% that were FSBO properties, just over 50% of them were a shorthanded transaction, meaning the owner sold their home to a friend, family member, or someone they knew. Of the remaining 4%, about 2% successfully sold on their own, while the remaining 2% pulled their homes off the market.
That said, there are seven common mistakes that you should try to avoid if you plan on selling your home by yourself:
1. Pricing your home inaccurately. This is the number one mistake most FSBO sellers make. Test the market data to make sure that your list price is effectively positioned in the market.
2. Not preparing your home for the market. Many FSBO sellers just put their home on the market and hope for the best. Unfortunately, in today’s market buyers are looking for turnkey properties or homes that have been prepared as best as they can be.
3. Not marketing your home correctly. Most FSBO sellers don’t have the understanding or wherewithal to market a home properly. Marketing is one of the most important parts of selling your home these days.
Marketing is one of the most important parts of selling a home.
4. Not understanding the paperwork. There is a lot of money on the line. If you don’t dot your i’s and cross your t’s, you could be putting yourself in a harmful situation from a liability standpoint.
5. Not understanding the proper terms and conditions. When speaking with buyers or industry professionals, you may agree to terms that you don’t understand, which can put you in a negative financial situation.
6. Saying the wrong thing at the wrong time. Just because you did a repair doesn’t mean you have to bring it up. As long as it’s not an active issue, you are protected. You don’t have to talk about what happened when the house flooded or the foundation crack that you’ll repair.
7. Overlooking details. Some FSBO sellers are simply not educated on the process. There are many steps involved in a successful home sale, and an overlooked detail could cost you tens of thousands of dollars.
Avoid these seven mistakes and you may be one of the successful FSBO sellers in 2017.
If you have any other questions or you are interested in working with an agent to sell your home, just give us a call or send us an email. We would be happy to help you!
Posted on 09/13/2017 at 09:00 AM