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For Sale By Owner: There’s A Lot Involved

You’ve seen the ads on TV: sell your own home and save all those commission costs. But there’s a lot more involved than just sticking a sign in the front lawn and having bread baking in the oven during your open house.

Even though you’re “saving” those commission costs, you may also be leaving at least 16% of your home’s worth in a buyer’s pocket. The National Association of Realtor’s (NAR) year-end report states that a FSBO home garnered a sales price of 16% less than those who used a professional Realtor®.

The biggest pitfall of selling your home on your own is how to market your home and the money left behind due to improper pricing. Following you will find questions to ask yourself if you are preparing to sell your home on your own. The questions will give you an insight of what selling a home entails.

Showings:
1. How many hours per day will you be available to field telephone inquiries and to schedule appointments?
2. Who will handle showings? Will someone be available during the week and on weekends?
3. How will you secure your personal safety as well as the safety of your belongings during showings?
4. When buyers view your property, what questions will you ask to determine whether they are interested in purchasing?
5. What will you do with your pets and/or children when buyers are viewing your property?

Property Condition:
6. What is your strategy to make your home appear as attractive as possible to potential buyers?
7. Are you aware of the federal, state, and local disclosures you are required to make to your buyer? If not, how will you determine what is required by law? Once you have made this determination, when do you plan to make your property disclosures to the buyer?

Traditional Marketing:
8. What print publications will you advertise in and what is the weekly cost?
9. Who will write your ads and what should they say?
10. What is your strategy for determining whether your advertising is effective?
11. How will you attract buyers to your open house and persuade them to give valid contact information?

Marketing to the Brokerage Community:
12. Eighty-four percent of homes sell through real estate agents. What is your marketing plan to reach the real estate brokerage community?
13. If an agent brings you a buyer, will you pay the agent a commission? If so, how much?

Web Marketing:
14. Which websites will you use to market your property?
15. How will you determine whether the websites you select receive any traffic?
16. How will web visitors find you using Google, MSN, and Yahoo?
17. Will you post multiple pictures and a virtual tour to the websites where you elect to market? If so, what is the cost and which vendors will you use?

Risk Management:
18. What is your strategy to avoid litigation when buyers ask you about square footage, lot size, or closing costs?

Negotiation:
19. What is your strategy for negotiating with bargain hunters?
20. When a buyer objects to a feature in your home such a room being too small or complain of paint schemes, how will you respond to the objection?

In 2004, 84% of all FSBO’s ultimately listed their property with an agent (National Association of Realtors® Survey of Buyers and Sellers 2004). If you feel comfortable handling the decisions listed above, you may be in the 16% of FSBO’s who will successfully sell their property without an agent.

About Jennifer M. Lane

I bring a business approach to real estate. I studied business in college and worked in major corporations where I had exposure to every aspect of a company from purchasing and marketing to design, production, and selling and everything in between. I got my real estate license for personal use to buy, remodel, and sell. It wasn’t long after using the knowledge for myself that I realized I loved real estate and could make this my career, business, life. I always wanted to own and run my own company and real estate became the answer. Yes, I run my own company as Keller Williams allows me to operate my business and work with my clients as I see fit. All under a Realtor’s® code of ethics, of course. I can market anyway I wish and give you all of the resources I have compiled myself to aide your search. Every piece of material I empower you with is created from my experience, research, and knowledge. You will find only the truth.

I am happy to consult with you in the manner you need and answer your questions about my services to you when buying or selling. If you are considering selling your own home and have questions about pricing, forms, or marketing, please feel free to call me.

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