For Sale by Owner:
Why on earth would anyone pay someone else to sell their house when it seems so easy?
Selling your house yourself seems to be a” no-brainier.” It would seem easy to place a sign in the yard, place an ad in the paper and maybe hold an open house or two, then buyers will be beating down your door to buy your home.
Most Realtor’s have multiple web sites, the brokerage they work for will have multiple web sites, the local Realtor Association will have a web site that auto populates to Realtor.com. Fifteen or so years ago, 85%-90% of all property calls came from the yard sign. Now, the opposite is true. Buyers begin looking on-line. The better FIRST impression your home makes to the buyer On-Line means tens of thousands to you – the home seller in home resale.
Home buyers are looking at each house in order to get a reason to mark that house off of their list. Buyers decide within the first 10 seconds if they like your house or not.
Whatever you believe you are saving by not paying Realtor commissions, you are probably off by a factor of three or more. When buyers ask questions like; “will this house appraise FHA?” What will you tell them? What happens if you are wrong? When buyers ask, “how long will I have to do a property inspection?” When buyers ask; “do you have a property condition disclosure?” What will you tell them?
These are serious questions that drive home the fact that selling your house is a business transaction. You have to ask yourself some serious questions like how committed am I to selling my house? Buyers can usually tell very quickly if you are committed to the sale of the house or not. There is an old saying Realtors use; “you can tell how motivated a seller is by the sign in the yard.”
The fact of the matter is; no one wants to pay commission. This is a fact anywhere homes are being sold. It is well worth considering that the National Association of Realtors estimates that 75% of all buyers are represented by a buyer’s agent (in Oklahoma we call them a Buyer’s Broker) who looks on the Multiple Listing Service (MLS). With very few exceptions, the Buyer never pays for the services of a Buyer’s Broker. The Buyer Broker fee comes from the Transaction.
Mr. & Mrs. For Sale By Owner ; by insisting on not paying a commission, you have effectively eliminated 75% of your prospective buyers regardless of other marketing tools at your disposal. Remember, the buyer knows you are saving money and the way they see it, you are saving at their expense. The Buyer may well be under a Buyer Broker agreement with the Buyer Broker. This means the buyer is obligated to buy a house from the Buyer Broker.
Sellers selling the house themselves tend to be afflicted with a malady I like to call buyer amnesia. They forgot their experience when they bought their home. They forget about the marketing factors that can give their house an edge over other houses for sale in the area. Sellers forget that potential buyers usually have vastly different taste.
Buyers do not want to invest all their funds into a house in which they know they will have to spend additional time and effort. In this kind of buyer’s market, they are absolutely right. When I work with buyers I always tell them, “do not fall in love with a house; fall in love with the deal. The house cannot love you back. The deal will love you back the rest of the time you own the house.”
For Sale by Owner: Without knowing anything else about your local or regional real estate market, selling your house yourself seems to be a “no-brainier.” It would seem easy to place a sign in the yard, place an ad in the paper and maybe hold an open house or two then buyers will be beating down your door to buy your home. Why on earth would anyone pay someone else to sell their house when it seems so easy? There are definitely pros and cons to selling your house yourself.
A critical part of the first impression is the pricing of the house. Buyer expectation needs to exceed the expectations. In Real estate we call that the “wow effect.” In a buyer’s marker, if you do not have the wow effect you may possibly sell your house, but you will sell your house far undervalued.
First impressions are absolutely critical. Remember Mr. & Mrs. for Sale by Owner, you are the Realtor. You say you are motivated to sell your home. The buyers see your home from a 180 degree prospective difference from where YOU see your home. They see a house. They are looking at a product.
If selling real estate was simple, there would not be a real estate industry. Mr. and MRS. For Sale By Owner, how motivated are you?