Are you planning to move to another state? Does your job require you to relocate? But hold on, you forgotten you got a home — what are you going to do with it?
Every home owner’s dilemma starts when your decision prompted you to sell your home – by yourself. But what are the reasons why home owner’s opted to sell “Solo” or in real estate world, does FSBO transaction (For Sale by Owner). One common reason is that the sellers didn’t want to pay agent’s commission or fee. They are trying to get away from paying extra from the supposed to be sales acquired from their property. But more often than not, a lot of sellers give up once they have started the process. They thought knowing the basics of selling was enough but when the real transaction begin, basics won’t be enough without the help of an expert.
Despite the many options for the owners on how they can sell their home, still a few fearlessly decides to do FSBO. Though, according to NAR’s statistics (National Association of Realtors), FSBO sales dropped by 5% in the last 10 years from 13% in 2005, meaning the demands of dealing with real estate agent is preferred by most sellers.
But what are the most common mistakes in doing FSBO Transactions? Let us find out.
- Pricing your home incorrectly. Self-assessing on how much your house may cost might put your property’s value in jeopardy. It might either be high or low for what is worth. There are independent real-estate appraisers that you want to consider paying. Again, add this up on your expense.
- Marketing your property. Putting a sign that your home is FSBO is not enough for you to put your place into market. You may consider the accessibility of your location and the visibility of your signage.
- No to MLS. Not listing your property might put your home at the bottom of the market. Self-initiated marketing strategy might consume most of your time and effort.
- Failing to prepare your home for sale. So you wanted to sell your home as soon as possible but you haven’t even done any preparation for your home to be presentable to potential buyers. This is one factor that might give buyers a big turn off.
- No to Pre-Sale Home Inspection. Because you wanted to save money, you skipped the part of having your home inspected before putting them to market. Let us be reminded that most buyers usually does home inspection to identify possible repairs that might cost you more money and time.
- Availability – You and your home. Selling a home requires your immediate attention whenever interested buyers come in. It is always a hassle especially if you are out working and no one is there to do previews of your house.
- Accepting and reviewing offers. Proper handling of offers is very important in negotiation process. You need an open mind to discuss it with potential buyers thus keeping the end of you bargain safe. At any time, this might turned down any chances you might have if mishandled.
- Knowing your buyers. Without much experience on how to determine if your buyers are qualified and at the end financially able to pay you till the closing of transaction. Again, you may miss this part and if lost, you could go back to square one of the process.
- Not familiar with contracts and other documents. Dealing with legal documents may require someone highly qualified to handle it. If you don’t want a fail sale, consult someone licensed to deal with it.
- You are not yet ready. It’s a separation anxiety state when you are not emotionally prepared to let go of your home and yet you already put on an earnest effort to put it on the market. Not just a waste of your time but to all the potential buyers as well.
I conclude that it is extremely important that you are not attached to your home before you decide to sell it. It is an emotional journey if you decide to do it on your own. I would rather advise you to consult a professional and licensed real estate agent first before parting ways with your beloved home.
Save you emotional stress, and time. Think and be wise.