Preface: As some of my readers know, I can be pretty darn direct, not because of ego or wanting to be right, but because I genuinely care about people.
If you saw someone about to jump off a bridge wouldn’t you try to help too? So forgive my directness, and understand it is because I care.
Mr and Mrs FSBO,
You want top dollar for your home, who can blame you.
First you try to list it For Sale by Owner, only to realize that even with the cheap MLS listing, and a few open houses the house isn’t receiving offers. Months pass, maybe years… then you goals and plans have to be revised due to the unsuccessful attempt to sell on your own. In the meantime, the market is losing 3% per month.. 3%! , but you don’t reduce your price.. or hire a realtor or even seek the advice of a professional..
Somehow, the media and/or others have mislead those who want to save money by not paying a realtor commission.
You see…Before I was in real estate sales, I sold my house myself, only to realize ( after the fact). After my house went under agreement I received a call from a buyer who was going to give me more, but since I was under a binding contract, there wasn’t anything I could do.. So I could have sold my house for $30,000 more! Even with a Realtor Commission, I would have made $20,000 more on the sale of my house… minus the headaches. Not to mention, my husband I had to deal with all the minor and major items from the home inspection. If I had a Real Estate Professional, he or she might have saved me the trouble.
For Sale by owners mis-price their homes more times than not.
Most of them overprice thinking that a buyer can make an offer and they can “negotiate”. The truth is that this isn’t the way it works anymore ( as if it ever worked this way). Buyers stay within $10,000 of the price they will pay.
Also, nearly 90% of home buyers use buyer agents. Buyer agents are reluctant to show For Sale By owner homes due to the risk involved and that quote end quote “generous” 2% commission isn’t enough and isn’t worth the hassle.
I saw an ad one day boasting on how the seller will pay the buyer agent 1%-2%, like it was going to get a buyer agent to run red lights to bring their buyers there!. Preposterous!
My unsolicited opinion: If you cannot sell your home for market value because you need more money, then sell in a few years IF the market turns..
…OR.. if you owe more than what the house is worth and can make your payments.. wait to sell.
If you cannot wait to sell and you are in a financial debacle, then see if you can sell it on a short sale.
But PLEASE, PLEASE, talk to professionals before you put your home on the market. Talk to 3 Realtors, get the facts of record first.