Saving To Lose – For Sale By Owner
SAVING TO LOSE?
The thought of placing a For Sale by Owner sign out in the front yard and selling your home by yourself is very appealing. Doing the sale yourself conjures up the thought of potential savings from cutting out the real estate brokerage. But, be careful before taking this huge step with your biggest financial nest egg. There is more to the process of selling or buying real estate successfully.
The data is in for 2018. The National Association of REALTORS® reports, in their 2018 PROFILE OF HOME BUYERS AND SELLERS report, that 7% of homes were For Sale By Owner sales. This is a decreasing trend from 2017 and the “…[t]he lowest share recorded since this report started in 1981.” It comes as no surprise that FSBO homes sold for less than the rest of the market. The report states that, “FSBO homes sold at a median of $200,000 last year (up from $190,000 the year prior), and signiﬁcantly lower than the median of agent-assisted homes at $264,900.” Now, there were some positives in the report for those who want to list For Sale By Owner. FSBO homes sold in less than two weeks and was attributed to those homes being sold to someone already known to the owner.
As far as selling a property, it entails more than planting a sign out on the lawn. The headache and work involved may not be worth the savings. Consider the following areas our team of professionals will undertake. Then, reflect on what you would need to know should you decide to buy or sell a home on your own. These concepts can also be applied to buying, selling, or leasing any type of real estate; commercial, vacant land, condominiums, etc.
Getting the word out. Real estate brokerages utilize networks to market your home outside of the city or suburb. This increases the probability of selling your home in the shortest amount of time. The longer your property stays on the market there is an increased likelihood for the sale price of your property to be reduced and reducing your profit margin.
The real estate market is ever-changing and always in flux. Listing prices fluctuate constantly, sometimes quickly, with the rhythm of the market. It is very important to correctly gauge the market’s direction and speed. Failing to assess your property’s correct value will effectively render the property “out of market.” This would likely result in selling at a low value. On the other hand, overpricing the home will keep you waiting for a buyer who may never come. Real estate agents have access to home sales information. Our team at Alpha Real Estate of Central Florida, LLC can effectively evaluate your home and provide a Comparative Market Analysis (“CMA”). The CMA process takes subjectivity out of the equation and provides a narrow range of listing prices based on a particular market’s dynamic factors.
The ability to negotiate may be the most overlooked part of the do-it-yourself (DIY) process, and should not be taken lightly. Do you trust your ability? Do you have the skill set necessary to successfully negotiate the sale of one of your most valuable possessions? Can you effectively manage the selling process all the way through to a ‘closing’ against a seasoned broker or real estate lawyer? If you have never been involved in serious negotiations with professionals, then you are at a serious disadvantage. The lack of experience could translate into negating the benefits of having done the transaction yourself. Any savings dwindling as negotiations go on or becoming non-existent at closing.
Arguably, the most dangerous aspect of selling or buying a property involves contracts and closings. You will need to have advocates on your side when negotiating terms and who can steer the process to a legally sound conclusion with the assistance of an attorney. Our team utilizes title companies who have attorneys on staff to deal with legal matters before and during closings to avoid problems. This is definitely the part of the selling and buying process that you do not to undertake without professional assistance or access to an attorney.
Value Added Services
As technology evolves, real estate agents are deploying this technology to sell homes faster and provide buyers with imagery and virtual viewings of properties. The use of drones to capture the overall beauty of the landscape surrounding your home is a big plus – and we use drones. Next, there are imaging devices that scan the interior of homes and provide virtual tours. These services are offered by Alpha Real Estate of Central Florida, LLC. Research has shown that videography and imagery can increase the probability of a sale by 40%!
The Quirky Factor
Some prospective buyers will be apprehensive about engaging a “For Sale By Owner” property simply because it’s not the standard approach in selling a property. As such, prospective buyers will likely be apprehensive. Buyers will also be anxious about engaging with a “For Sale By Owner” property and steer clear from visiting the property altogether.
Selling a property on your own is possible. But, you will need to be prepared and committed in order to sell a property successfully. Consider how much time do you have to spend on marketing your property, what methods you will use or have to learn to determine how much your property is worth, and what your personal time is worth. Ultimately, determine whether your investment of time and energy will be repaid by the commission you save.
Don’t Save To Lose.
Contact Bill Moore today!