Angie's LIST Guide to
For Sale By Owner
Should you attempt a FSBO?
Homeowners that attempt to sell a house on their own can often endure a time-consuming chore. Still, faced with paying out a large sales commission to a Realtor, the idea of a "For sale by owner" approach can be attractive to many.
Anyone considering their options needs to evaluate the market and the potential benefits of listing with a realtor. A more active market means selling a home will be easier. Commission rates are likely to be less volatile than buying patterns in a housing market. With large overhead costs and little incentive to hassle over a few thousand dollars, Realtors in a bull market could be more of a burden for an astute homeowner.
The internet has revolutionized the exchange of information and bridged the gap between the homeowner and the buyer, a space traditionally occupied by real estate agents only. With innovative tools available to alleviate some of the time constraints, a sale by owner experience is increasingly convenient.
Challenges with a For Sale By Owner
There are several hurdles homeowners have to overcome if they are not dedicating a full-time pursuit to selling a home.
Setting a price
Possibly the most important aspect of attracting the right buyer is a competitive price that matches that market. A homeowner should evaluate the real value of their home, assess the prices of homes recently sold in the area and determine the amount of selling activity currently happening in the area.
Showing the home
Keeping appointments with interested buyers, opening your home to walk-in visitors and staging the home for visits are crucial, but time-consuming tasks in selling a home. Homeowners must keep an organized approach to the in-person interactions in the process.
Negotiating a contract
Setting the right price is crucial to properly starting any negotiation process. However, once a buyer is teetering on the edge of purchasing the home is important to secure a final offer you are comfortable with. Home sellers should gauge the interest of the buyer, their level of motivation to buy and where the negotiation is going compared to where they assumed the price would be.
Promoting your home online
Most potential buyers start their search for a new home online. Therefore, any homeowner looking put their house on the market needs an aggressive approach to marketing it online.
Homeowners can first create a web presence by developing a website centered on selling their home. Purchase a relevant web address that matches your address or location and add as much detail with text and pictures to give the feeling of a virtual tour. This allows interested buyers to have many of their questions answered before they decide to show up in person. The quickness of finding information online saves both the homeowner and buyer time. Listing a competitive price upfront also deters unqualified buyers from show initial interest.
Many homeowners also market their website and property in existing online outlets for real estate listings, many of which are free. Adding valuable and thorough information significantly increases the attractiveness and the return on the work put forth to market the property through external sources.