Should you, as landlord, looking to sell your house, consider selling the property yourself or taking the conventional route and engage a Realtor? That is the preverbal $ 64000 question - or if you use the national average selling price of existing homes of 268000 U.S. dollars - the issue of 16000 dollars. Based on pure value, this is an issue that really should, at least, deserve consideration.
It is clear that the sale by owners (FSBO) is not for everyone. I really do not know why that statement has to be done - nothing (with the exception of air and water) is for everyone. Now back to the point in question.
Why should consider FSBO:
First - you save money - a simple statement to make. How to save money? You do not pay the typical 6% commission associated with real estate brokerage and real estate sales list. This is not just about money - it is your duty-free (usually) fair housing. The money they've won in the end, either through appreciation, home improvement, or sweat equity knowledgeable real estate investment. Anyway you slice it, it's your money. It is often said buying a home is the most important and largest acquisition of an individual's life. Are not the reason that the sale of a house represents the most important "Sale" of an individual's life? The National Association of Realtors will tell you that FSBO houses to sell 16% less than sales of real estate. The problem with their calculations using a formula to support his argument flawed - using an average of prices as opposed to an average price. The median is an "average" in a series of numbers - the average is a sum of all numbers, divided by the total number - which is what we as landlord is concerned.
Another consideration is that a FSBO can take all or part of the commission real estate savings and deducting the price of their homes to expedite the sale. This works very well in a "soft" or if the market simply has to sell his house in a limited amount of time. Consider this example (he used this unlikely scenario purely to make my point). It has a 1300 square feet - 2 bedrooms / 2 bathrooms condominium. Its adjoining neighbor has exactly the same unit with the same level of finish and has listed with a Realtor for $ 485000. Calculate the 6% real estate commission to the equation and best away with its neighbour 455900 U.S. dollars - which lets you to negotiate with $ 29100. If I am a buyer and I see exactly the same condominium next to $ 30K least I can say that I am buying! To be honest, I'm going to buy it if I can save anything! This works well if you bought in a strong housing market and the market has softened to the point that you actually paid more then you can sell it. Selling FSBO can allow at least keep his head above water - remember we are talking about 6% of the value of their property.
Another reason people feel FSBO is a bad experience with promoters. Realtors are like any other field - there are "good" Realtors and "bad" Realtors. Like many industries that have a self-regulated "Board" that may be brought before the punishment and face. That said Realtors also carry E & O insurance and litigation to protect both themselves and their customers.
Do you need a Realtor in a hot real estate market? I would say that - not! If the houses in his neighborhood street or sold within 2 -4 weeks of trading, do we really think there's some hot shot real estate responsible for it - the market is responsible. It could be related to all sorts of things, including the local economy, zoning, school system, new amenities, or a number of other factors, but rarely or never, is due to a Realtor. Include your home FSBO - which sell the same speed and in the same price range
FSBO also provides a significant level of control, you can control as long as passes or Properties Open happen. Personally I am not sold on the value of the houses open for FSBO's - I know the value of real estate and is freer then serving often for the benefit of home. Realtors use an Open House for "troll" for potential customers. There is little chance that they will buy the house where they are conducting an Open House - they're buying a house - and chances are that they do not have an agent when houses are open.
Another advantage of selling FSBO is the simple fact that you know your home better then a Realtor. Buyers who are interested ask very specific questions like what kind of perennial crops are in the garden or what we like the neighbors. To be fair this can also go the other way, some homeowners do more harm then good - who can not help themselves. I personally attest to this with the FreeFSBO.com ads that appear only go on and on. It is important not to overwhelm a potential buyer to the point that never want to risk exposing itself to this situation (the owner) again.
Why you should not consider FSBO:
There are over 2 million Realtors license at the national level. Most of them are highly trained and experienced professionals. Can a single FSBO compete with this - perhaps (14% of all sales come from FSBO).
Realtors may have clients who are looking for a property like yours. Having said that, generally, that approach if they do - asking if they are willing to cooperate and probably request that it be formalized and have signed a document agreed to pay his commission. Be careful if they ask you to sign an agreement on that list is longer then 48 hours could be simply trying to grab your list and the "buyer" may be fictitious - pay no more than 3%.
You simply can not take the time needed to conduct a FSBO - for every four people who say they come to see the property is likely that one show - get used to that fact. Do not get your feelings hurt if someone does not like its flavor or property - that is simply reality. If a potential buyer calls and wants to see his house in a moments notice may have to drop what you're doing and rush home to show his house. If you're not prepared to deal with that then maybe FSBO is not for you.
You do not have any sales or marketing. I know that it is not easy to admit, but if you are an introvert - forget it. The most successful Realtors are extroverts and spend countless hours attending social functions, clubs, associations, golf courses (I'm sorry I had to throw it) to generate leads and contacts. They are usually taken countless sales training courses and most importantly, they know how to close an agreement.
Multiple Listing Service (MLS) - in my opinion is the most important advantage they have over FSBO Realtors. The MLS is composed of more than about 500 individually owned and operated MLS organizations. It is essentially a national repository of properties available for sale. It provides both developers and buyers alike the opportunity to locate properties using a series of search criteria, including but not limited to, geographic location, size, price, bedrooms, bathrooms, etc. There are two factors to consider here - one - can buy a MLS lump sum, whether at national or county level and take advantage of the marketing exposure offered by MLS - which will cost in the range of $ 299 - $ 599 and an agreement to pay 2 to 3% a sales agent if a Realtor sell your home. You, however, retain the right to sell your property yourself without paying a commission. With regard to the "quality" of the exhibit goes, I truly believe that a line FSBO listing is higher (in appearance and functionality) to an MLS roster or real estate. That said, not FSBO website has the level of traffic and potential buyers offered Realtor.com.
In conclusion, it is clear that achieving a success for sale by owner is not for everyone - we all agree on that statement. Is it worth trying - Definitely!
FSBO