Fsbo Tip - Don't Do It
By Steve Gillman, Thu Dec 8th
My Number one FSBO Tip? Don't sell it yourself! A "FSBO," orhouse "For Sale By Owner" can sell fast, and for as much as itwould have if listed with a real estate agent. Sometimes - butnot normally. Consider the following ten points.
1. Buyers work with agents. Most look at MLS listings. Sell ityourself, and they won't see or hear about your home. How do youfind that "right" buyer or get top dollar when you're invisibleto most of the market?
2. Your FSBO will get lower offers. Naturally, the buyer thinksyou'll take less because you're saving the commission! Save a$10,000 commission,
get $10,000 less - where's the advantage inthat?
3. Advertising is expensive. The costs the real estate officenormally pays are yours if you sell it yourself. How much couldyou spend on ads if it takes a a year to sell? 4. They have theresources. And you don't. Agents have books of sold propertiesto look at, for example, to determine the best price for yourhome. You can dig through county records, but you do have tovalue your time too, right?
5. They know the market. What's the target market for yourhouse? Young couples, retirees? What features do they want? Youshould know these things before you write your ads. Anexperienced real estate salesperson will know.
6. They know the laws. What about written disclosures, and whopays for the real estate transfer tax? When you sell it yourselfyou don't get to ignore the laws.
7. Are you a good salesperson? Can you develop rapport andproperly answer objections? Could your defensiveness scare off abuyer who criticizes your home? Think back on your ownpurchases, and you'll realize that a good salesperson makes adifference.
8. Paperwork. Will you help the buyer properly fill out anoffer to purchase? An agent would. Do you have the other closingdocuments ready?
9. Agents negotiate for you. When did you last learn a newnegotiating technique? Can you counter-offer without scaring offa buyer? A good salesperson is trained in these skills.
10. You may not save anything. The documents, newspaperadvertising, signs for the yard - it's all your expense when yousell it yourself. After your hard work, you may get low offersand negotiate poorly. Honestly, sellers often net less moneyfrom the sale when they try to save the commission.
Most "FSBO" sellers eventually turn to a real estate agent forhelp. You could learn the things an agent does, but is it worthit to spend all that time and maybe not even save any money?Don't sell it yourself unless you really know what you're doing.That's my number one FSBO tip.
About the author:Steve Gillman has invested in real estate for years. See a photoof a beautiful house he and his wife bought for $17,500 on hishome page, or go straight to the section on Investing In Real Estate:http://www.HousesUnderFiftyThousand.com
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