Nov. 19, 2006 - For-Sale-By-Owners:

If I sell my house myself, I will save thousands of dollars, right?  Maybe not!  Many homeowners believe that to maximize their profit on a home sale, they should sell it themselves.  They feel that by selling on their own, they will save money by avoiding the real estate brokerage fee.  Almost 20% of all homes for sale last year were by the owners.  However, only 13% actually sold by owners.  In addition, over half of those who did sell their home by themselves said they were not sure they saved any money and would definitely use an agent the next time they bought or sold.  Why were so many people unhappy with the results they achieved by selling their own home?

Many For Sale By Owner’s explain that the time, paperwork, liability, and everyday inconveniences involved were not worth the amount of money they saved in commissions.  For others, the amount of profit was disappointing.  By the time they figured the amount of additional fees paid to outside consultants, inspectors, appraisers, title, lawyers, advertising and marketing cost, they would have been better off having paid the broker’s fee which includes many of those charges upfront. 

FACT: Over the past years, marketing and selling a home has become much more complicated. Even though there are more homes being sold over all, the percentage of homes sold by-owners has fallen.

Selling a home requires an in-depth and detailed understanding of the real estate market, finding the best qualified motivated buyers, and many other steps that bring about a successful sale.  If the property is priced too high, it will develop a reputation as being a problem property.  If the property is priced too low, you could lose a great amount of money.  Some For-Sale-By-Owners discovered that they lost money as a result of poor marketing or wrong decisions.

Before you decide to sell your own home, consider the work and liability involved versus hiring a professional.  Some time spent investigating at the beginning can pay off in the end.

  First, ask if you have the time, energy, know-how, and marketing ability to devote to selling your home.  One of the keys to selling a home effectively is accessibility.  Many homes sit on the market because the owner is unavailable to show the property when the buyer wishes to see it.

Next, are you prepared to deal with buyers that perceive For-Sale-By-Owners as targets for low offers and an opportunity to save money themselves?  One of the great challenges of selling your own home is screening unqualified buyers and bargain-hunting homebuyers.  Settling for a low bid is almost always worse than paying a sales commission.

Are you prepared and knowledgeable to offer information about financing?  Are you willing to finance a buyer?  It is critical to have all the necessary information that a buyer needs, and the topic of finances is certain to come up.  A professional real estate agent will have a team of lenders and title reps for you and your buyer to use.  Do you have that luxury when selling your home on your own?

There are two primary reasons why homeowners consider selling on their own!

1. Hopes of saving the commission.

2. They did not know a good agent. 

FACT: REALTORS will generally sell houses for 5-8% more than owners themselves.

Shortcomings in marketing your For Sale By Owner  plan could help to sell your competitor’s home.  The local real estate market has changed from what it was only six months ago. There is more inventory of homes for sale; meaning buyers have more choice.  Getting your home the most exposure is essential to finding a qualified buyer.  I can do that through a huge network of Realtors with qualified clients looking to purchase a home.

Contact me today.  Let me show you what tools I have to help you attain your goal…Getting Your Home Sold for the Highest Possible Price!

Michael J. Adams

Email at mjadams@century21.com  Office: 732-828-3700  Cell: 908-377-9262

Century21 Our Town Realty, 852 Easton Ave., Somerset, NJ 08873