Advice To Help You Sell Your Home Without A Realtor
Are you trying to sell your home by owner? If you ask us it’s better than paying 6% to a Realtor. It’s much better than giving it away to one of the “Direct Buyer” brokers that will pay you a “fair price” while charging you 14% in some cases. If you already have your home on the market as a FSBO, we’re sure you have had your share of Real Estate Agents reach out to you, most telling you how wrong you are and you are on a journey of unconditional failure. That’s not our purpose. The last thing we want to see is anyone pay 6% to sell their home. That’s why we are providing you with some advice and tips to help you sell your home.
What You Need To Know –
First off before we go into our tips, you must have a good understanding of the home selling process to sell FSBO. If you have never sold a home before, or better yet multiple homes before, you should consult with an expert. Investors love to take advantage of uneducated sellers.
You have to think like a salesman and not like the homeowner when pricing your home. Everyone has what we call the “Halo Effect” when it comes to their own home. Of course you think your home is better than your neighbors. That is why you bought it in the first place. FSBO sellers also have a slew of misinformation on the internet with automated valuation reports. Check out Zillow’s own stats here with their Zestimate. They give themselves a “D” rating (67%) of being within 5% of the value of the home. On a $300,000 that means they are off by $15,000. Who wants to sell their home for $15k less? You also need a good understanding the value of upgrades. Unless you are adding square footage, most upgrades do not net you a dollar for dollar return. A pool is a good example. You might spend $40,000 on a pool but for resale value, you will only get maybe $10,000.
But we are here to help. Why not get a free second opinion. Click here for a Free Home Valuation Report prepared by local experts instead of a computer algorithm. no obligation at all.
We are not going to talk about making your bed and putting the dishes away for a showing. You know this. We want you to focus on what else potential buyers are seeing. Is the landscaping under control? Is there peeling stucco, cracked pool decking, leaking sprinkler head, or dry rot on the patio? Have the air filters been replaced recently? These may be minor things on the grand scale but to a Buyer, this could be perceived as extra work and money at their expense. That results in either a lower offer or none at all.
We are not suggesting you bring your home back to its original state to sell it. Often times people over-improve certain items and ignore others. There is a fine line between calculating the ratio of expense to value when getting your home ready for sale. Having a 3rd party take a look at your home for suggestions might point out some issues you don’t see. Ask a neighbor to walk through your house or, give us a call. We would be happy to take a look for you.
You have a good price. You fixed up the place and all you need now is a buyer. Sticking a FSBO sign in the yard and advertising it on a few websites like Zillow or Craigslist will make the phone ring. The problem is most of the calls are from Realtors wanting to list your home and Investor/Buyers trying to low ball you. When Buyers go to sites like Zillow and Realtor.com they are searching for homes listed on the MLS 1st. Very few look for FSBO listings. Why? most don’t know how to buy a FSBO home. It’s a big expense with many moving parts. Home Buyers, especially 1st-time buyers feel comfortable having the assistance of an agent. Our suggestion would be to write somewhere in the description your knowledge of how to close a home for sale by owner.
Other methods to promote your home is through social media. Share your FSBO with all your friends and ask them to share it with all of theirs. If you work for a large company contact your H.R. department and see if you can share your home on the company intranet or maybe the monthly E-Newsletter if you have those.
The other option you have is to offer compensation to a Buyer’s Broker. In the Phoenix market its normal to see 3% offered. We see many FSBO listings offer this. If you are at this stage in your home sale then our suggestion would be to put your home on the MLS. There are many companies out there that provide an Ala Carte service to list your home on the MLS but offer little in marketing or consultation.
We here at the MJD Group offer full representation, full service with our $2500 Flat Fee
Selling FBSO is not easy but it can be done. The last thing we ever want to see you do is to pay 6% to sell your home. Please take advantage of the free services we offer. There is no obligation at all. If you have any questions please feel free to reach out to us.