imagesSelling your home For Sale By Owner, FSBO sounds like a great idea on the surface.  The thought is offering it yourself and avoid that big fat realtor commission that takes thousands out of your net from the sale.  I think that is the major reason people sell their house using this strategy but usually end up frustrated in the process.

Many people also think that this route will sell their home faster than the average agent listing the property.  Unless you can find that “Top Producer” to list and market the house, the property ends up sitting with no real offers to purchase much less any possible traffic from an open house.  So homeowners have the idea that they can do it better since they only have their house to place all the focus and should have a better marketing motivation that a realtor with hundreds of listings.

Off to the home improvement store they go to buy the red and white “For Sale” sign and write in their phone number with a black marker.  They stick the sign in the yard and wait for the phone to ring off the hook.  Although this describes some, maybe you go above the norm and create an ad for Craigslist, the local newspaper, print up flyers, and list it on popular FSBO sites.

Initially, this seems easy enough to do to sell your home and avoid thousands in commissions. But what if someone calls, can you negotiate, write a contract, what next?

What if no one calls except realtors asking to list your house for you? Or local investors offering way less than your retail asking price?  Now your house is no longer fresh inventory after sitting 90-120 days on the market.

Let me offer some advice on your options of selling your house:

If you don’t need to sell it right away then leave the red and white sign in the yard.  Hold out as long as you can and get the most you can for the house.  Make sure your price is realistic with the current market and comparable to other similar houses sold nearby. Continue to field the phone calls and qualifying the potential buyers from the listing agents.  Keep the house spotless at all times for that surprise showing at 9:00 on Sunday night.

If you ask why not list with a realtor for a quicker sale, well even if they found a buyer on day one of the listing there is still another 30-45 days in the process with negotiations of the price, repairs, inspections, contingencies with the buyers financing, and after all that a big check going to one maybe two real estate agents in the transaction. And if the listing agent isn’t a top notch marketer it could sit for another 6 months before an offer comes in.

Consider these statistics also when selling your house with a realtor.

  • 6% of the selling price is typical commission for the buyer/seller agents
  • 10%  off of the asking price is the average buyer’s offer. For example, your house asking price is $160,000; their offer to buy is $144,000. As they say on TV, but wait that’s not all…
  • 3-5% is the average for seller contingencies such as home inspection findings, obvious repairs, pest inspection remediation, leave the fridge. More reduction in net to you.
  • 2-3% in seller concessions are also negotiated by buyers in the form of seller paid closing cost participation.

This totals nearly 25% off of your expected net profit not to mention that it may take 3 to 6 months to get an offer and close it with a realtor.  In that 3-6 months you could be showing your house to 20-100 people most with no intentions of purchasing your house. Each one of those looky-loos require setting up an appointment, making sure that your house remains clean for showings, and you leaving for a couple of hours while the realtor walks them through.

On the other hand, if the house needs to be sold quickly because you’re moving, have been relocated by your job, can’t afford the mortgage payments any longer, or any other reason that causes you the need to sell it faster then you may want to look at an investor to help with a quick and cash purchase.

Investors can make the transaction of selling your house faster and easier. 

Investors won’t require a lengthy time period to get qualified for funds therefore closing and getting your check faster

Its easier to work with investors too because they don’t care if the house is clean or not.  In fact, they won’t pick the house apart by noticing every paint chip or dust-bunny on the mantle they see. Or if the carpet has a big stain in the middle of the living room.  None of this matters to the investor.

Another point of ease is the immediate offer to purchase you’ll get in writing and once accepted by you escrow is open and the process gets started right then.  No waiting.

If you’re tired of the phone calls, keeping your house spotless all the time, showing it to strangers every weekend and you want to look at selling it quicker; then give me a call or fill out the short form at the bottom of the homepage. I can buy your house easier and quicker than putting the red and white sign in your yard.

Sell Your House To Dave

 

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