For Sale by Owner (FSBO) -- Do you want to sell your home without a real estate broker? Doing so can save you a commission but requires that you devote time and energy not only to marketing and showing the house but also to learning and following the legal rules controlling sales of real estate in your area. FSBO Rationale
In most cases, the seller attempts to sell their property on their own to avoid paying the real estate agent commission. This commission is generally six percent of the selling price of the home. Three percent goes to the agent that lists (sells) the home and three percent goes to the agent that represents the buyer. While this rationale makes a lot of sense to the average person, it can often be difficult to sell one's home.Look at the statistics below.Seems that one is likely to lose money by not using an agent.
According to Google, there are over 75 million matches on the phrase "by owner". Statistics
From the 2004 National Association of Realtors Profile of Homebuyers and Sellers: The basics: - 30% of homeowners attempt to sell without an agent, two-thirds are successful
- 24% of FSBOs stated that "getting the price right" was the most difficult part of selling their home
- The typical FSBO homes sold for about 13% less than an agent-assisted home sale. So let's say for a $ 300,000 value home you'll end up with $ 39,000 LESS in your pocket !!
Other statistics of note from the NAR: - One third of all FSBO sales go to a prior acquaintance (friends of your relatives,colleague at work etc..)
- One in four (25 %) FSBOs end up going back to an agent or broker. Some statistics show that the number is more like 80% of all FSBOs that end up getting an agent... usually after 6-8 weeks. This means FSBOs can be easily discouraged.
- If you go FSBO plan on many agents contacting you trying to get your business.
Most Difficult Tasks for FSBO Sellers:
Getting the right price . . . 11%
Understanding paperwork -- 16%
Preparing/fixing up home for sale . . . 18%
Attracting potential buyers . . . 9%
Having enough time to devote to all aspects of the sale . . . 9% Ideas for a Successful FSBO sale - Determine the fair market value of your Ottawa home. Spend some money if you need to getting a list of comparable sales in your area. A kind real estate agent might provide a list for free. (They do it for buyers and friends routinely.) Listing your property too high will cause you to waste valuable time and get discouraged. Listing it too low might get it sold, but you'll leave money on the table.
- Make sure to tell everyone you know (your sphere of influence) that you are selling your house. One third of FSBO sales go to a prior acquaintance of the seller. Do this AFTER determining the fair market value of your home. At the very least you might try this approach for a month or so prior to listing with an Agent, especially if you are undecided.
- Advertise your home. Any good real estate agent will spend money to sell your home in newspapers, publications, websites, on the MLS/IDX etc. An agent takes 6%. If you're saving that money, spend some on advertising. Don't rely on just a yard sign.
- Be prepared to negotiate with a buyer's agent. Possibly plan on offering them some commission. Make sure you know the value of your home and plan on possibly tense negotiation.
- Know the details:
- Details about your home (sq footage / lot sizes / restrictive covenants)
- Understand contracts, offers, acceptance etc. Possibly consult an attorney.
- Get all offers and counter offers in writing
- Make your prospective buyer get pre-qualified within a week so that you don't lose valuable time finding out they can't finance the deal.
We Will Help You
Ideally when selling your home on your own, you should get all the exposure your can - This is where we allow you the opportunity to do so. Because of our extensive website and Search Engine Optimization that we have in place we are able to attract a huge Internet traffic to our site so pottential clients can see your property for sale. HUGE TRAGETED TRAFFIC! great exposure for your properties and YES IT's FREE. No Catch... Yes ,you asked yourself WHAT'S in it for US?? Answer is simple:Listing more FSBO properties we attract an ever growing traffic to our site which in turn helps us sell our listings too. So thank you for your listing !! List your Home for FREE and get more exposure for your home today !! We offer you FREE INTERNET LISTING!! 1. As many photos as you like ( supplied by vendor) 2. Top rankings on search engines for many Toronto GTA neighbourhoods 4. Schools, parks and amenity mapping for your home. |