Check this out: about 10% of home sellers in America are actually selling their homes themselves. Yes, you read that right. Instead of paying a hefty commission fee to a real estate agent, selling by owner is the new way to go.
Are you selling a home by owner? Take a look at the many reasons why FSBO sellers should reconsider before hiring a realtor!
What Do Real Estate Agents Do, Anyway?
You might be wondering: what do real estate agents do, anyway? Before you decide to ditch your real estate agent, it’s a good idea to take a look at what you’re leaving behind. Besides taking a chunk of your earnings, real estate agents also list your home and set your price for you.
To find the best price, most real estate agents will get to know your neighborhood first. That can include things like looking at recent comps, sales, and patterns in your nearby area. Then, they’ll think about how quickly you’d like to sell, which affects the selling price they choose.
On top of this, real estate agents usually check out your home to see what kind of condition it’s in as well. That way, they can point out problems that should be fixed before they list your home. Otherwise, they can offer a discount to reel in leery buyers.
Of course, there’s typically a hefty commission fee that comes along with their services. The craziest part is that this can be split between listing and real estate agents too. So, when you have two different agents selling your home, it’s taking a large portion of your overall profit in the end.
Don’t want too many hands in your pockets? We highly recommend listing your home on your own. Although you’ll still have to pay a small commission fee to your buyer’s real estate agent, it’s way less cash out of pocket than paying for your own agent as well.
If you’re feeling up to the challenge, selling your home and keeping most of your earning is worth a shot. And don’t worry – tons of people have sold their own houses without real estate agents before. The secret is to think exactly as your real estate agent would!
Setting a Competitive Price For Your Home
Not sure how to set a competitive price for your home? Join the club. In a nutshell, the housing market has been exploding for a long time.
Between rising prices and the housing crisis, homes are flying off the shelves more than ever. As a matter of fact, the amount of houses sold annually has been steadily increasing for the last couple of years. And here’s the best part: if you’re looking to sell your own home, there’s no better time to do it than now.
Here’s the deal. Thanks to severe housing shortages, prices are skyrocketing, but that won’t be the case when more homes are built. Instead, building more homes will bring the cost of housing down for everyone.
Pro tip: make sure that you’re selling your home when market prices are high. Another word of advice is to write down your objective price for your home. To do so, research home sale prices for houses that have similar sizes and features as your own, including:
- Bedroom count
- Bathroom count
- Lot size
You can always use free calculators online to nail down your most competitive price as well. However, we suggest that you avoid paying appraisals for estimates. That’s because the banks will end up appraising your property for you anyways.
Keeping this in mind, find a price that fits your goals and demands. So, if you need to relocate quickly because of a job, you might want to sell your home as fast as you can. Otherwise, set a higher price to attract wealthier buyers.
Waiting for a sellers’ market? If so, then most home sellers set an above-average listing price for their houses. To stand out from the crowd, just set your price a little lower than theirs. You might even spark a bidding war!
Staging Your FSBO Home For Buyers
Need help staging your home for future buyers? We got your back. To put it simply, your online listing should speak for itself.
So, you’re going to want to invest in some quality photography to impress future buyers. First of all, you need to have a furnished and clean home for a photographer to take photos of in the first place. But sometimes, homeowners move out their belongings before a photographer has a chance to arrive.
Don’t want to photograph an empty home? It’s easy: all you have to do is a reach out to a design company to stage your home for you. But that might end up costing more than you’re willing to give to fill blank walls with art and stuff vacant rooms with furniture.
Over time, this could really add up if your house doesn’t sell right away. That’s why it’s so important to leave your furnishings in your home to stage it for an open house. Not only will you save money, but you’ll be more motivated to sell quickly as well.
For starters, you’ll want to make sure that your home has a ton of space and light. Next, try to declutter your home as much as humanly possible. By taking out unnecessary things, your potential buyer will have a much easier time seeing their own family in your home. Although it’s a smart idea to keep your original furniture for the staging process, you might want to take down anything too personal like family photos.
Then, hide everything that you don’t want on display in secure storage areas or closets. And whatever you don’t want to keep, you can make a bit of money off of selling online. Better yet, host a neighborhood yard sale to get rid of extra stuff!
Hosting an Open House For FSBO Sellers
Dying to know how to host an open house for FSBO sellers? We’ve got you covered. Now that you’ve got your house staged for viewings, you’re ready for your home’s big premier on the market.
Head out of your house to check out local open houses in your area. Whether they’re for sale by owner or not, you’ll want to study how other home sellers are presenting their houses for potential buyers.
Once you get back, make a few copies of your sales sheets to post around town. There’s no harm in spreading these printed ads around community cafes and shopping centers either. Don’t be afraid to brag about your home on it too, including the:
- Background story of your house
- Amenities in your neighborhood
- Nearby schools and parks
- Nightclubs in your region
The next step is to set an actual time and date for your open house viewing. If you’re feeling totally clueless, most people have theirs during the weekend in the morning or the afternoon. Plan to spend about three hours having guests cruise through your home to get a feel for it.
And since it’s already staged, decluttered, and cleaned, all you have to worry about is getting the word out about your open house. This one is a no-brainer, but you should definitely be present for the entire time as well.
Now: don’t hesitate to post your home for sale ad on multiple listing services too. Bonus points for spreading the news about your house for sale on social media. Take it to the next level and send out an email blast about your open house to friends and family!
Negotiating With Potential Buyers
Dread negotiating with potential buyers? You’re not alone. The best part is that the negotiation process doesn’t have to be a huge pain for homeowners with our helpful tips.
First of all, negotiating with potential buyers might be a little more complicated if you’re dealing with any major repairs. Make sure to run an inspection beforehand to make sure you’re not caught by surprise at this point. Also, prepare to deal with a bunch of counteroffers and offers from future clients.
The truth is, most buyers are going to want to get a nice deal on what you’re offering, looking to offer less than your selling price. That’s why so many potential buyers already know what’s wrong with your home, using it as a bargaining chip for a big discount.
Want our advice? When it comes to selling your home, it pays to wait out the lower offers in hopes of receiving higher ones. Thus, you don’t even have to respond to people who aren’t seriously considering buying your home.
You can reject any offers that you feel are too low. Typically, the same client will come back at you with a higher offer later on down the road. Planning to sell in a down market?
Have no fear – there are still hungry homeowners out there just waiting to snatch up your listing. Do yourself a favor and drop your prices to watch buyers come out of the woodwork!
Moving into a new area after you sell your home? Make sure to check local house listings for an open house near you!
Signing Paperwork With Your Buyer
Okay, so you’ve found the perfect buyer for your home. Now what? Here comes the fun part: signing paperwork with your buyer.
Luckily, you won’t even need a real estate’s agent help as long as you know the laws in your area. Wherever you live, there are usually certain rules that prevent you from discriminating against particular buyers. Since each state has its own laws, it’s essential to read up on them before you sign your final documents.
For example, if you live in Texas, you have to fill out extra disclosure forms to avoid getting fined. In addition, some states make you tell buyers if you have lead paint in your home as well. Sound too confusing for you?
If you’re having a hard time getting the hang of it, you can always hire a real estate lawyer or an escrow agent for a hand. However, it might be more cost-effective to find a fee-only broker that can help you untangle all of the legal paperwork instead.
Even though you have to pay a few hundred bucks upfront, that’s way less than you’d have to spend if you hire a real estate agent. At a fraction of the price of commission fees, this could be the best way to make sure everything is legitimate for your house sale.
Feel like skipping a commission fee? Try listing your home on an online real estate website instead!
Home Sellers Don’t Need Realtors Anymore
Here’s the thing: home sellers don’t need realtors anymore. To be quite honest with you, trying out the whole for sale by owner thing is a great way to save cash on commission fees for realtors.
Thinking of selling your home on your own? From setting a competitive price and staging your home to hosting an open house and negotiating with potential buyers, we’re here to help.
And get this. Sealing the deal with your client doesn’t have to be a headache-and-a-half either. In fact, sometimes all it takes is consulting a special broker to get the job done.
Ready to get your home on the market? With our useful guide, selling your home should be a breeze.
Want to list your home? Sign up for our multiple listing service today!