If you are ready to sell your home, you may think that trying to sell it yourself is the way to go. For sale by owners (FSBO) is a typical way for people to attempt to sell their home. Most often FSBO houses ultimately hire a realtor to help them sell their home. Realtors are professionals that are trained and skilled at selling homes. They have connections that a regular homeowner may not have. The sole job of a realtor is to help buyers buy and sellers sell. In Lexington, KY, real estate agents are available to help you sell your home with the best return on your original investment.
There are many reasons why sellers think selling their home on their own is a good option. They think it saves them money because they do not have to pay a commission to the real estate agent. Some sellers believe they do not need a professional to sell their home, and they can do it without assistance. Those are the two major reasons why sellers attempt to sell their own home. However, there are many reasons why FSBO often fail.
What Are The Pitfalls Of For Sale By Owner?
There are more people that a seller has to deal with when selling a house than people realize. There is always some type of negotiating that has to happen. The seller must negotiate the price of the house with potential buyers. The buyer wants a good deal, and typically, the buyer has an agent. When acting as an FSBO, the seller must deal with the buyer’s agent. The seller may also have to negotiate with the attorney for the buyer. The seller must interact with a home inspector. Most likely, the home inspector is going to find something wrong with the house. There is always at least one thing. The seller may also have to deal with the bank and an appraiser, depending on the situation.
FSBO Often Overlook The Small Stuff
There is a lot of work that goes into preparing a house for sale. Most of the time, a seller is not experienced with knowing all of the items that should happen before listing a house. The seller should de-clutter the house and remove items that make it feel like someone else’s home, family pictures, for example. When a potential buyer walks into the house, you want them to see themselves in it. That is hard to do with someone else’s pictures hanging on the walls. The seller should put a fresh coat of paint on the walls and have the carpets cleaned. If there is any work that needs to be done at the house, they should be finished before the house goes on the market. As a seller, you want the house to be ready to sell when it goes on the market. There should not be any work that needs to be done. The intention is for the house to sell as soon as possible. That will not happen if it is in the middle of a repair.
Interacting With The Buyers
A large part of selling a house is interacting with potential buyers. This is something that Lexington, KY real estate agents can handle for you. Without their help, a seller is on his or her own to screen buyers. Before seriously consider interactions with potential buyers, they should be pre-qualified, or pre-approved. Most sellers are not aware that skipping this important step could end up wasting a lot of time. If a buyer does not have pre-approval, the seller has no idea if the buyer can even afford the house.
Buyers often have many questions when they are interested in a house. If a seller does not have a real estate agent, he is responsible for answering all of those questions. Failure to respond timely can result in losing a potential sale. Most sellers have other jobs, so it becomes challenging for them to respond to the questions. A seller may not know the answer to the questions.
In addition, sellers must schedule showings. Real estate agents use agencies and software to schedule showings for them. As a for sale by owner, a seller is responsible for organizing all of those on his or her own.
The Timing Of It All
The key to selling a house is to do it quickly. The longer a house stays on the market, the harder is it to sell. It has been proven that a house sells for more money in the first week it is on the market. The longer it sits on the market, the more concern a buyer has when deciding to purchase it. If a seller attempts to sell by himself and then ultimately hires a realtor, valuable time is lost.
The best way to see a house is to advertise. There are many websites on which a house for sale can be listed. Some of them will not advertise a for sale by owner house. It is the job of a real estate agent to know all the ways to advertise a house for sale and get it the exposure it needs. Experienced real estate agents have existing relationships that provide the best advertising sources.
The Law Can Be Messy
There are contracts and legalities that go along with selling a home. Someone that is not experienced with selling homes may fail to follow the proper procedures. These contracts have timeframes associated with them and requirements such as a mortgage and inspection. Contracts can be difficult to understand, and a seller may not fully understand the details of the contract. Sellers may not know which parts of the contract that are able and should negotiate for themselves.
Home inspections are particularly tricky and can cause major headaches for the seller. A home inspector always finds something wrong with the home. Buyers always want sellers to address the items an inspector finds. Buyers want to buy a house that is in the best condition it can be. Sellers often believe that their house is perfect, and there is nothing wrong with it. As a result, the seller may refuse to make the repairs. This almost always causes them to lose the sale. There is nothing that scares a buyer more than the inspector saying something is wrong. The buyer has the expectation that the seller will fix it. A seller is not skilled at negotiating this process.
The Price Of It All
Sellers and buyers alike understand that the most important thing about selling a house is the price. Most of the time, FSBO incorrectly price their house. It is important that it is not priced too high, or it will not sell. It is also important to price it so there is room for negotiation. It is rare for a buyer to offer list price for a house on the first offer. There are also buyers, such as investors, looking for FSBO because they feel they are easy targets. They may give you low ball offers just to see if you will take it. They are taking advantage of your inexperience. Do not fall victim to this. A real estate agent can protect you from falling victim to this.
Closing can be another tricky time for sellers. Once an offer is made and accepted, closing is the last hurdle a seller needs to get through. There are some steps a seller must take before closing can happen, and everything needs to happen within a certain timeframe. A home inspection must occur unless the buyer has waived the inspection. All contracts must be approved by an attorney. The seller should make sure the buyer has a written commitment from a bank for the mortgage. The last thing a seller wants is for the buyer’s mortgage to fall through within days of closing.
A seller most often opts to sell the house himself in an effort to save money. In reality, there is not much money being saved this way. Typically, a seller ends up spending more money out of pocket when selling the home himself. In addition to advertising, repairs and any other money spent, time is costly. The seller spends a lot of time handling all of the items a realtor typically handles. The time a seller spends far outweighs the cost the seller would spend on a commission to a real estate agent. Time spent must be considered when deciding to do a FSBO.
Initially, it may seem like a great idea to sell your home on your own. When all you are looking at is the cost you pay in commission, it seems like the better option. You must really think about all that goes into selling a home and calculate the cost of the time it takes you to do all of those things. You should also consider that you do not have the same connections a real estate agent has and marketing your home is much more difficult without those touchpoints. The housing market is set up so that you should use a realtor to sell your home. No, you do not have to use an experienced realtor, but it is definitely to your advantage. If you are considering selling your home, you should strongly consider using Capstone Realty Consultants to assist you. In Lexington, KY, real estate agents are ready to assist you and make selling your home the best possible experience it can be.