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The
most common error a F.S.B.O can make is
to try and EARN the commission and not
SAVE it! Another common flaw is to list
your home for sale the same
price as the comparable home
down the block, listed with ABC realty.
Look,
chances are the home down the street is
overpriced anyway if it is listed with a
broker. In my opinion, the "system"
is already over inflated to allow enough
room for commissions and you as a FSBO
are an outsider. So if you have a
comparable home and ABC has theirs priced
at $300,000, the commission in most cases
is $13,000. It would be wise as a private
home seller to price your house for
$287,000 to $295,000. In this case you
would make more money in the end selling
your home by owner.
Want
to enrage the brokers and "use
them to your advantage"
for free?
If
there is a comparable home listed in your
neighborhood, just put up your for sale
by owner sign on your lawn with the price
of $287,000 - $295,000 and place your
advertisement in the newspaper. Then use
the brokers advertising, and marketing to
your advantage. The broker by design must
advertise their clients property and hold
open houses etc. This will cause lots of
interest in your neighborhood. People are
not stupid, they will see your home and
realize it's a good deal, why should they
pay more when they don't have too?
One
of the other big misconceptions is that
selling your home by owner is difficult,
contracts etc. The most elementary way to
resolve this is if you get someone
interested in making an offer have a
lawyer or notary look at it. For a few
hundred dollars you can have the peace of
mind that your interests are taken care
of.
Selling
privately does take some homework. The
whole real estate industry is based on
comparable sales. What have other
comparable homes in your area sold for?
As a FSBO you must be realistic of what
your home is worth based on what similar
homes have sold for. Not
listed for but sold for.
The
number one reason a home sells in most
cases "is the price",
not the fancy kitchen or the cool garden
gnomes - it's the price.
Also,
timing plays a big factor. When do you
need to move? If you need to sell your
home in a week or 6 months your price
will have to be adjusted accordingly.
The
best scenario for a private home seller
is when you have priced your home
correctly, have done the small fix ups,
have advertised it effectively and are in
no real hurry to move. If you have a 4 to
6 month time frame to work with, this is
ideal.
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