7 Costly Mistake For Sale By Owner Sellers Make

Dated: April 23 2018

Views: 168

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Should you sell your home without a real estate agent?

Our area is experiencing a very active real estate market, and the thought of selling your home without hiring a real estate agent could mean thousands of dollars in your pocket, which sounds promising, especially with local home prices on the rise. But is it the best move for you?

The internet provides quite a few websites that allow you to bypass the listing agent and offer your home "For Sale by Owner." However, FSBO home sellers should be prepared to do quite a bit of legwork to market and manage the sales process without a guarantee of a completed sale. It might be a good idea to think back to your own purchase experience of finding a home you could afford, getting the mortgage, going through the due diligence period  and finally closing.

Selling a home if far more difficult than selling practically anything else.  When you think about it, this isn't the Realtor's® first rodeo, but it might be yours. A good Realtor® is not only knowledgeable about your home, the neighborhood and the overall area,  the selling process, paperwork involved, he/she are not emotional about the sale and so much more.

Ask Yourself the Following;

  • Do you know you the market value of your home in today's market?

  • Are you ready to work with a buyer's agent?

  • Will you take charge of the marketing and sales activities needed to sell your home?

  • Are prepared to bear criticism of your home?

  • Are you prepared and willing to screen potential buyers?

  • Are you prepared and willing to manage the inspection, financing and closing processes?

These Are 7 Most Common Mistakes FSBO's Make:

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Mistake # 1 -  WRONG PRICING

The most common and serious mistake FSBO's make is pricing their home too high leaving the property to languish on the market, becoming not only "stale" but also a "bounce house" or the one people use to confirm they're getting a good deal somewhere else.

When a home sits on the market for too long, buyers begin to wonder what's wrong with it, and will make their offers based this erroneous perception. Generally homes that enter the market too high, will end up selling far below market value.  Online home value estimates for the most part are not accurate and if you take the time to read the portal's disclaimer you will see that they do not guarantee the accuracy of their estimates.  A professional, verifiable Comparative Market Analysis done by a Realtor® with the professional expertise and competence, the best use of technology will always beat any online estimate.

Remember that these real estate websites offering a quick estimate are not performing a Comparative Market Analysis, they are simply using an algorithm that does not account for the best features of your home, simply an average price among homes that may or may not be comparable at all.  Many factors need to be considered when accurately pricing your home, many people think that their home is worth more because they've "improved it." But not everyone appreciates a garage converted to living space, many people might prefer a garage to be a garage. Adding a pool doesn't necessarily increase the value of your home either. 

Image titleMistake #2 - BAD (OR INEXISTENT) MARKETING

Just because you have a knack for selling goods on Ebay or Craigslist doesn't mean you should make the jump onto the housing market.  Did you know that in 2018, 89% of all home buyers in the United States used the services of a Real Estate Agent?  Those agents are most likely to work with agents representing properties when looking for the perfect home for their clients. As you probably know it is common practice for real estate agents representing home buyers to look at various homes before the homes are even officially on the market.

Today's home buyers are much more sophisticated and tech -savvy than previous generations. Not only are they looking online (95% of them) but also more and more are relying only on mobile devices (smartphones and tablets) to carry out their searches. To reach these buyers an online marketing plan and strategy is necessary, at #ITHINKREALTY we not only have a proven online and social media marketing strategy and plan, but we start even before your home goes on the market with our #PRE-LAUNCH MARKETING PACKAGE.

Just because you can post photos online that you've taken with your phone doesn't mean you should (no matter how great the filters you use). Your photos will be competing with professional ones and it's almost guaranteed that yours won't look as good.  FSBO's usually underestimate the amount of effort it takes to professionally market  their home. 

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You know the saying "If you have to ask how much it costs, you can't afford it?" People often look at expensive homes even when they can't afford them. 

To weed out these unrealistic buyers, real estate agents pre-qualify every single one to determine whether they're ready, willing and able to afford your home, saving you countless hours and hassle. This however usually doesn't happen with For Sale By Owner sellers. Must buyers are reluctant to share their financial information directly with sellers, but they will work with Realtors® and their lender to validate their qualifications. 

Afterall, you don't want to take your home off the market to negotiate with someone who was never qualified for the home in the first place. In today's active real estate market a delayed sale could cost you thousands and possibly even the successful sale of your hom

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When people want to buy a home, they expect someone to respond to their inquiries and show the home when they want to see it. But many FSBO sellers show the home only when it’s convenient for them effectively loosing a large percentage of people who actually find their home.

If you can't  easily communicate with buyers or show your home in a timely manner, expect buyers to move on. By working with a real estate professional at #ITHINKREALTY we can handle all showings with the least amount of inconvenience to you, always making sure your property and belongings are secured and protected

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Mistake # 5 -

When selling your home is never a good idea to be emotional. Try using logic instead of emotion. Otherwise you might not take a strong first (and usually best) offer from fear of making a bad deal.

Your connection with the home can also get in the way. Many time sellers think of their property as their home, not just a house on the market, and this emotional attachment tends to get in the way of rational thought and facts get lost in the emotion. Never a good idea when trying to sell your home as you might miss one or several good, qualified and ready buyers from moving forward with your house. 

As real estate agents, we do not have this emotional attachment and will always give you the best advice and information, based solely on facts and thinking of your goals and interest.
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Mistake # 5 -
You might know every nook and cranny of your home, and you might have given tours to guests. But that doesn’t mean you know how to show a house to prospective buyers. Some people, for example, don’t want to be led around. They want to look on their own and ask questions later.

One other important consideration is that many buyers are not comfortable being candid with a homeowner about their concerns and issues with a home, and unfortunately when they are the homeowner tends to get defensive and argumentative, definitely not a good atmosphere to find common ground and sell your home.

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Mistake # 6 -
89% Of all home buyers will use a real estate agent. But buyer’s agents, for the most part, don’t like working with FSBO sellers, believing they’re difficult to work with and require extra time over working with a listing agent.

To top it off, For Sale By Owner's usually  don't offer a buyer's agent commission, or they offer an extremely low commission discouraging agents to show the home, let alone do the work needed to get it sold.
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Mistake #7 -
Without someone knowledgeable overseeing the transaction, scams happen to both buyers and sellers, usually with little recourse besides hiring an attorney.

Common scams include fraudulent documents, such appraisals, loan documentation, foreign buyer deposits, purchase through third parties, as well as phishing for personal information.  The commission you expected to save might seem like a huge bargain if you're targeted for one of these or many other real estate scams.

Besides these common mistakes, there are a few other issues that may haunt the seller in a real estate transaction anyone can make mistakes. A seller (or buyer) who doesn’t have the representation of a licensed agent pays for those mistakes. So if homeowner Sandy lists “hardwood floors” as a feature and the buyer discovers it’s just a wood veneer, chances are Sandy is going to pay for that mistake. An agent would have either caught the mistake or covered it with E&O insurance. Let’s face it: this is a litigious society, so what homeowner wants to be a target for lawsuits?

Call us at @ 863-292-6895 so that we can help you with the sale of your house, we serve Auburndale, Haines City, Davenport, Lake Alfred, Lake Hamilton, Lakeland, Dundee, Clermont, Kissimmee, Bartow, Winter Haven, Polk City.

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Manuel Quiros

My name is Manny Quiros, I’m a real estate professional in the “Disney Area”, I have lived in this area since 1999 and have called this area my home and place my wife and I to raise our three wo....

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