This week we finalized the sale of our condo! We did what everyone advices against, we listed as FSBO (for sale by owner). And to be honest, if it wasn't because I myself have experience in the field and have listed and rented my own personal property, I too would advise against FSBO. If you do not have experience it can be a brutal and frustrating process. The money you may save (which is not guaranteed by the way) in realtor commissions, you will end up paying in headaches and frustrations. A realtor takes all of the hassle of selling your home and their agency may provide the right marketing tools and connections to get you top dollar for your home. With that being said, if you have decided to go the no realtor route and want to attempt to sell your own home here are a few tips:
1. Hire a real estate attorney. They will be able to walk you through the process and provide you with the correct forms and legal documents required to sell your home. Being knowledgeable about the process is also crucial in reassuring prospective buyers that you know what you are doing. We had some prospects concerned on our choice to not use a realtor but our professionalism and preparedness helped us ease those concerns. If you come across as lost or insecure in the process, be guaranteed that people will walk away no matter how beautiful your home is.
2. Run comps. Number one mistake FSBO make is listing their home way over the market rate or comps. One easy way to correct this is one, take your emotions out of this, it doesn't matter how much time and money you have invested in your home. If your home doesn't align with the demands of the market you will have a hard time selling it. Use public records to look up recent sales in your area. Using sites like Zillow will also allow you to take advantage of their free pricing tools and recently sold market data.
3. Declutter and clean!!! Property brothers and I cannot stress this enough, DECLUTTER and CLEAN your home. I recommend storing items in a storage unit, but if you can’t afford this option, make sure everything is boxed and well organized in your basement. Do not shove everything in your closet! People want to see the home and imagine how their own furniture will fit. Invest in a professional cleaner and landscaper if possible, if not get ready to do some serious spring cleaning.
4. Stage your home. When you look at Zillow, which properties catch your eye, the ones you can barely tell the size of the room or the professionally staged ones? I recommend using a professional stager, but if that is not in your budget use your many hours of HGTV marathon training to good use 😂. We spent some time and $$ deciding how we wanted to stage the home and it definitely paid off.
5. Photos! Ever hear of the saying "a picture is worth a thousand words"? Well it is especially true when listing your home! Professional photos are so necessary if you want your home to stand out against the rest. We did not use a professional photographer, but we are pretty tech savvy and tried our best to imitate professional shoots. But if you do not have an eye for photography please hire a professional, the money will be well invested.
6. Marketing. Take advantage of every listing platform out there: Instagram, Facebook Market place, Zillow, Craigslist etc. Do not place the typical red and white "For Sale" sign. Create an attractive sign using programs like Adobe or my personal favorite Canva, then use the printing services at Staples to create a sign/flyers. Another advantage a realtor has is that they can list your home on the largest database for-sale homes, MLS (A multiple listing service). I would recommend using a licensed online broker which will list your home on the MLS for a minimal fee. One very popular option is Entry Only.
7. Ensure you have qualified buyers. Let potential buyers know that all offers must be submitted with a mortgage pre-approval letter (if they’ll be financing) or proof of funds (if they’ll be paying cash). We were very trusting with our prospects because we had the luxury of time (we were not in a rush to sell) but if you don't have that luxury make sure you ask for a pre-approval letter. You would be surprised at the number of people who are not qualified but say they are.
8. Act like a real estate professional. Selling your home should be your number one priority and you should treat it as your most important job. Answer the phone promptly, be professional , be available. That call you don't answer or that appointment you wont make time for may cost you a great buyer.
Even after following most of the steps above, keep in mind that things may still not go as planned and you may end up needing to hire a real estate agent after all. We received multiple offers one week after listing our condo! YAY, we thought, and then the sellers financing fell through, which can happen even when the buyers are pre-qualified 😕! Shortly afterwards, we ended up re-listing the condo and getting a cash offer close to asking price, but it didn't come easy or stress free. So my advice to you is to sit down and really analyze your situation. When do you need to move? Are your dates flexible? What's your break even point? Is the money you think you are saving by not hiring a real estate agent worth all the work it entails to list FSBO?
As, always if you have any questions on this matter please leave a comment below!
xoxoxo Diane, Nick, Theo & Max
Post a Comment