Hey everyone I know your thinking, "Joe why on earth would you give real estate advise to a for sale by owner"
Well, its simple: A home for sale is inventory, I sell real estate for a living. If inventory is low, that is not good for business. I as a real estate agent, I rely on there being homes for sale so buyers can and want to purchase homes. So regardless if a home is listed with an agent, or a for sale by owner, it is in my best interest.
Truth be told, I have actually sold many For Sale By Owner properties for buyers and I created this guide to help in the sale of business like mine.
So here we go.
1. Price! Price! Price!
I can tell by looking at a home in less then 5 minutes, what a home is worth in the market the home is situated in. Why? because my experience combined with the tools available to me allow me to be able to do this.
But hold on a second. If a seller wants to sell a home buy owner decides to put his own home for sale them self, they usually in almost every case I can remember, consult the advice of a Realtor. Almost always. A Realtor is going to suggest a listed price on your home. This is where almost all FSBO (For Sale By Owner) sellers go wrong.
Many of the times they make the mistake of going with what the Realtor they just interviewed, tells them. Here is why you can not afford, to list your home your self, at that suggested price.
Recent data shows, over 90% of potential buyers are working with a Realtor. If you list your home now FSBO (for sale by owner) at x amount, lets say $250,000. But there are 20 other homes, maybe more similar listed at the exact same price, what is the likeliness that your home is going to sell? or even get some showings? You are now blended in with everyone else. Everyone else who may or may not be listed with a realtor. You now need to shine, to be able to stand out from the crowd. The best way to do this, price lower. Price $2000, $5000 or $10,000 lower then the rest. Get attention. Get Noticed. Remember you don't have to accept any offer. It is your decision.
**Tip** Do not forget a buyer looking at your home, also has many tools to be able to assess the market value of a home. Often buyers looking at For Sale By Owner homes are attracted to those homes because they assume, the home will be listed at market value less real estate commissions. This is often not the case, because the Seller or FSBO seller makes the mistake of listing at what the Agent who evaluated there property, told them.
2. Home staging
Did you know recent data provided to us from the real estate association of America shows homes for sale that have hired the services of a professional home staging company sell on average for over 30% higher. And those same listed homes not only sell for more money, they sell on average 2.5 times faster. I can count on one hand how many times I have been inside a For Sale By Owner home that was professionally staged. Less then 5 for sure, and I visit 100s of homes every year. The reason? I could not tell you, but this is a must. Real estate Agents like my self are going to leverage there listings full potential and eat you for breakfast with professionally staged homes for sale. Many agents like my self, hire at there own hard cost, these home staging and decor companies like Positive Home Staging in Surrey BB. Who will give a consultation at a fee, and a home staging if needed. So, FSBO **tip** do the same! Hire a professional company in your area.
3. Not advertising a Fee for a Buyers Agent or Realtor.
This is the single largest mistake a FSBO (for sale by owner) can make. Why? Did you read above what the % of buyers who are working with Real estate agents to buy a home is? Over 90%. The other homes they are taking there clients through all have a listed or advertised fee or wage. You should also. Front and center so a realtor is not scarred to show your home. Make them want to show it. Recent data shows that over 80% of For Sale By Owner sellers agreed to pay a Realtor who brings them an offer a fee for that service. Why not advertise it?