Are you thinking about selling your home on your own, as a For Sale By Owner?
After more than 30 years in Utah real estate, there are a few things I've learned. And some of those things I've learned by paying attention to mistakes other people (and agents) make when buying or selling a home!
Many people think they can save time and money by selling their homes on their own, without using a Realtor. But did you know that national statistics show that FSBO sales bring in less money on average than an agent involved sale? But money alone isn't the only reason (or even the main reason) you should hire an agent. Here are a few of the other big ones to consider.
Success Rate: My success rate in selling the homes I list is always above 95% (and usually stays at 100%). FSBO's on average, succeed to accomplish a valid sale that closes less than 14% of the time. That equates to a LOT of risk, time, money and frustration, just to end up right where you started.
Average Price Received: The average sale prices for a FSBO (and this includes those sellers who sell to deep discount wholesalers like Zillow and OpenDoor, is 26% less than properties represented by a professional, experienced agent.
Selling a home is Hard Work: A recent survey showed the uphill battle most sellers have when they decide to sell on their own.
Selling a home is a lot harder and more complicated than most people expect. Professionals make it look easy, but I can tell you from first hand experience, getting everything to work smoothly is part art and part science.
Forms and Contacts: Did you know there are over 30 approved forms that you need to use when you sell your home? Some of these forms have complicated provisions that, if you don't know what you're doing, can inadvertently obligate you for something that you didn't know about.
I remember negotiating a home sale for my client, contingent on their new home being built and a certificate of occupancy being granted. Just after the sale, the labor market when haywire, and it took an extra 9 months to complete their new home. The buyers (who were unrepresented), were stuck waiting for the better part of a year before they could move into their new home. Negotiating a deal correctly is what separates the pro's from the rookie Realtors. And that's even more magnified when it comes to a FSBO.
Timing the Sale and Purchase: This is a big, big deal... that comes with experience. Making sure your sale is coordinated with your purchase means that you don't run the risk of ending up in an apartment for months on end, and all of your stuff stacked in a dusty storage unit. Don't underestimate all the things that can go wrong in the timing of your sale and new purchase. It's important that it is handled perfectly.
Time: Most people have no idea how much time it takes to get a home sold and closed. Having a professional agent means that you can maximaze your return on investment.
Discount Brokerages & The MLS: If selling your home was a easy as listing it on the MLS, all of these discount bare bones realestate firms would be thriving. But there is a reason they all end up out of business. Just having your house on the MLS doesn't guarantee the sale. In fact, did you know that most professional agents won't even show your home if you've 'listed' it with a discount brokerage? Those agents who aren't capable of negotiating their own commission, let along the purchase and sale of your home worth hundreds of thousands or even millions of dollars, tend to mess up and complicate the transactions so much, that it's just not worth the risk of my selling my buyers one of their houses. I'd just rather show them a home represented by a pro, who I know will manage the other side of the transaction correctly.
Pricing Strategy: Not having access to the latest information on market sales, is a huge problem for most FSBO's sellers. And even if you know what a home sold for, chances are you are not plugged into the market changes, inventory availability, and issues related to loans, max loan amounts for certain types of financing, and sold comparable that will eventually have to appease the appraiser.
But the right pricing strategy can make a huge difference in your net realized profit. I can show you some ways to price your property so that you get maximum market value, as fast as possible, and with lots of competition bidding your sales price up in a buyers frenzy. It's something that has taken years to perfect. And it's not something that the average agent has the experience to pull off.
Marketing is expensive: Most FSBO's put a cheap sign in the yard, and might advertise their home the digital for sale ad's of their local paper, or worse, Craig's list. But if you want to maximize the amount of profit you get on your home, you need a more aggressive and professional marketing campaign.
Look at what I do for my clients, and see if you think it will out market the average FSBO?
We strategically place your home online unlike other companies; I receive all of the leads we get on your home
In addition your home will be on 14 other websites including (JonEborn.com, JonEbornRealtor.com, UtahRealEstate.com, SignitureSLC.com, Realtor.com, Homes.com, and more)
Hire a professional photographer to take pictures of the interior and exterior of your home. This is critical to wow the buyers who are comparing your home with a hundred others online before they even call an agent to go see them in person.
Create a Virtual tour online experience to help the buyers actually 'feel' what it's like to be inside your home long before they get to your front door. This is critical because if we can start helping them 'feel' what it would be like to live in the property, they will show up with renewed NEED to buy it, no matter what. This nets you more money, every time!
Staging your home to show magazine quality lived in look and feel. Create a professional brochure/flyer for the inside of the house
Take one flyers designed for the outside of your property on the for sale sign! This is where we capture buyers information via technology to make sure we can follow up with them or their agent.
Have professionally designed post cards and direct mail campaign to neighbors notifying them your property is for sale. This brings in highly motivated buyers who will pay more to live in your specific neighborhood.
Notify agents in my office, my exclusive off-market lenders who have qualified buyers, and targeted agents who I know are active in the market with buyers who are prequalified and professionally represented.
Hold a MEGA open house. This is a massive, now or never open house that attracts as many as 40 or 50 buyers in one 2 hour setting, and builds momentum and competing offers to make sure you get maximum value.
I personally invite your neighbors to the open house/broker preview to they have a chance to choose their new neighborDaily marketing and prospecting by my entire team to find the perfect buyer for your home.
Aggressive follow-up with prospective buyers
Hold a broker only Open House for local trusted and professional brokers/agents and investors.
Advertise on social media with a campaign that is demographically targeted to find the perfect buyer for your home who will pay maximum market value.
Weekly check-in calls to “stay on the pulse”
Install a secured and highly technological keybox so we can make showings easier for professional agents, and also so I can track every one that comes in your home, how long they were there, and get professional feedback.
Automatically via email, send you all feedback from showings
Automatically email new listings, pendings and sales in your neighborhood
Review pricing weekly and notify you immediately of market changes
FSBO's usually end up paying a commission anyway. More often than not, a buyer is procured by an agent, who represents the buyer (but not the FSBO seller), to complete the transaction. So you end up paying 3% to the buyers agent, reduce your net proceeds even further, all to save 3 % on the listing side.
FSBO's often end up paying much more in buyer incentives than they should and often more than is even legally allowed by FNMA, FHLMC or FHA. This is a critical error that hurts sellers at the closing table. A professional agent make sure that they negotiate you the best deal for you... period!
Finally.... did you know that the # of FSBO's sold has dropped by over 50% since 1981? Even with all the technology we have now, the internet, and more... most people know that the money you invest in hiring a professional agent, has an ROI that is worth it, multiple times over.