While riding around Iredell County and the surrounding areas, I continue to see For Sale By Owner real estate signs pop up. Seems like there may be more than we normally see in better times. I have to wonder if the sellers think that using a Realtor is a luxury that they just can’t afford right now. I understand the desire to save money- I’m well know for my own frugal ways. However, I also understand that although I’m a big “do-it-yourselfer”, there are some things that are not wise to do it yourself unless you have the skills, knowledge and tools of a professional in that particular field. I used to do my own taxes and of course, the government was OK with that. I eventually came to the conclusion that given the complexity of the laws, I may be doing it legally, but I was likely not getting all the benefits I should because I don’t know the system well enough. Should a CPA do their own taxes? Certainly if they are familiar with tax code. If not, they’d be wise to hand off to a tax professional.
My point is that if you choose to sell your house yourself, you may be able to attract a buyer and get it done. The real question is whether or not you came out better on your own than if you’d hired a Realtor to market the property and negotiate the contract and handle all of the details necessary to get to the closing table for a successful sale. You see, buyers are attracted to FSBO’s because they know the owner is not paying a real estate commission, so they expect the owner to take less. The buyer is even willing to have a much smaller number of choices in order to get this savings. Yet, the seller often fully expects to pocket that savings himself. His house will be exposed to FAR fewer potential buyers, so he’ll not likely attract as high a price because we know that the more exposure you have, the higher the eventual price paid (this is how effective marketing creates the demand part of “supply and demand.”)
FSBOs usually try this for a few weeks, then hire a Realtor when they realize that just putting out a sign and maybe a newspaper ad may attract interest, but not much from people who are actually qualified to buy a home. If they do get a sale, it is very often to someone they already knew who had an interest in the home. That’s great! Just be sure the buyer can get a loan and that you’ve worked out who’s going to save what- oh, and what happens if the sale falls through.
One reason Realtors as a business have been at it for so long is that marketing and selling real estate is not like putting a vegetable stand on the side of the road and waiting for the buyers to show up. Every house and seller and buyer is different. House selling and buying can be quite complex, and the pitfalls of doing it incorrectly can really ruin your day, week, month and years to come.
If you’re just thinking about selling your house, call me. Let’s talk about it. There are lots of other things to consider that just what I’ve mentioned here.
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