“I know it’s a good idea to use a broker to sell a home, but I need to get every penny out of it and I’m thinking of trying to sell on my own. Can you give me any tips?”
***ANSWER:
I understand where you’re coming from. Most of my clients need every penny then can get from their sale.
Just realize that even if you’re successful selling For-Sale-By-Owner (“FSBO”), it does NOT mean you’ll net more money. You MIGHT, but you might not. Consider these 6 facts:
—Fact #1—
A 2004 NAR national study showed sellers without a broker on average sell for at least a 5% lower price.
—Fact #2—
Many FSBOs pay 3% to a broker who brings them a buyer.
—Fact #3—
Many FSBOs say If I find a buyer, the escrow company can handle everything. In truth, escrow handles only a small part of the sale.
—Fact #4—
Many FSBOs pay unneeded costs or junk fees, pay too much for repairs, and pay extra loan payments or other losses from closing delays and cancellations.
—Fact #5—
Real estate transaction have so many moving parts that many licensed agents mess things up! There’s negotiating …long, complex contracts full of fine print …inspections …dozens of disclosures …repairs …loans …appraisals …termites …insurance …building codes …permits …title …escrow …and much more.
—Fact #6—
Most FSBOs unknowingly violate a wide range of laws and leave themselves wide open to a lawsuit from the buyer.
(You just have to combine #1 & #2 and the hoped-for savings already start to disappear.)
DISCLAIMER: Obviously, I’m not completely objective as I make my living selling real estate. But you’ll probably agree that everything I said above is true.
