Homeowners who do not employ the services of a real estate agent in selling their house but instead does it by themselves are called FSBO or For-Sale-By-Owner sellers. Only 10 percent of FSBO are said to be successful in selling their home for the right price, the other 90 percent fail. The reason for this is the fact that FSBO do not have the technical skills when it comes to selling properties as compared to that of a real estate broker who is already seasoned by the experiences he has in his day to day transactions. By this time you might already be having doubts if you are still going to sell your property FSBO or you should just hire the services of a real estate broker. Before you decide on that, you should also know that every real estate broker started where you are now, little knowledge about real estate selling and zero resources at his disposal. So think of your situation as a level one or starting real estate agent.
Prepare For the Challenges Ahead
1.Time Challenges - properties that are being sold by real estate brokers are said to be sold 25 percent faster than that of FSBO. Sometimes FSBO had to relist their properties in the MLS Listing. This is definitely a huge problem for FSBO especially if you are trying to sell your property fast.
How To Overcome: To overcome this you have to exert extra effort and try to improve your MLS Listing. Make sure that your photos look professional and enticing. Your MLS Listing should capture the attention of potential buyers as they browse over the different properties in the listing.
2. Process Challenges - what this means is that every FSBO will encounter problems with the different processes that everyone has to go through when selling their home. From listing their property, to advertising and doing some marketing and open house. Since you have to start from nothing you have to make your own advertising and marketing materials.
How to Overcome: Making your marketing materials, conducting your open house and listing your property in MLS Listings are necessary pains that you have to go through in order to sell your property as fast as possible and at the right price. Try to look for services that will help you with these process like using the flat-fee MLS Listing service that helps you in your marketing and listing your properties in the MLS Listing. Again conducting research will be beneficial on your part as you look for affordable services that could do the job for you and lessen the burden in the process.
3. Pricing Challenges - according to research FSBO will sell their property at a lower price at an average of $40,000. Which means that is $40,000 less in your pocket. One of the reason for this is the fact that FSBO do not exercise due diligence in trying to come up with the right market price for their property. Most of the time by not doing your research you end up selling your property at a lower price.
How to Overcome: It would not hurt if you act with due diligence and do your research. Start with looking for properties in your neighborhood that is also for sale or that was recently sold. Check on their selling price and compare it with yours. Asking for information would really go a long way.
For every problem there is a solution, you just need to look in the right direction. With the right knowledge you will overcome the problems commonly experienced by FSBOs.
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