Selling a house is like selling a part of the family history. It sounds like so sentimental but it is generally true. Many important family events happen in a house, so if you ask any house owner, it is not easy to sell a house even if you do it because you are transferring to a much better, new house.
A house is not just the witness to many significant events in one’s life; it is also a major investment, involving a sizable amount of money. So, selling a house should be carried out correctly so you do not suffer twice , that is, you lose money aside from the non monetary value of the home.
In selling real estate, many think of a real estate agent but now, more and more sellers avail of the listing services of FSBOs.
FSBO ( pronounced as “fizz-bo” ) is the acronym for “For Sale By Owner.” This is an alternative to using a real estate agent to sell your house. Why should a seller do away with the services of a real estate agent? Following is a list of the advantages if you become an FSBO seller:
- The seller has control over the selling process
The FSBO seller exercises control by determining the price, advertising, whether to hold open houses or see buyers by appointment, managing the sale. - Quicker Sale: By saving the real estate agent’s commission, the seller can lower the price of the house.
- You know better than anyone about the house.
This knowledge allows you to discuss the house with the buyer intelligently plus the fact that you can share with the prospective buyer information on how to make them enjoy their stay not only in your house but also as new members of the neighborhood. - You are not in a hurry to sell the house.
- You have a potential buyer.
- You have a real estate attorney to attend to all the legalities.
Then, why are there sellers who still hire real estate agents? Some of the reasons are listed below. You hire a real estate agent if:
- You are in a hurry to sell the house.
- You are poor in handling tension, and complications and rejection, especially after a long tour of the house.
- You don’t know the right basis to price the house for sale. Agents know the prevailing prices as they have handled a lot of real estate properties.
- You don’t like the negotiating process.
- The agents do not have emotional attachments to the house, so they can be objective during the negotiations.
Honestly check yourself against the requirements in selling the house. Do you have the patience and time to attend to all the activities that go with selling a house? Do you have a good real estate lawyer to guide you through the legalities that go with selling?
Make an objective assessment and make a decision that would benefit you most.
Okay, so here is a major problem with agents. Sellers overprice their homes to account for commission. Say a house is priced at $266,000 with 3/3 split of 6%, and both agent and seller know the house would fly at $250,000. As $250,000 adds greater exposure (in other words, it can appear at both the top or bottom end of a search), listing a house for $250k on a solid FSBO site (in a location where FSBO is strong) offers close to the same end price for the seller if no negotiations are made. The seller could come down to $250k with the agent, but why would he or she? Why not wait until the listing expires and list for 250k FSBO?
P.S. I love the idiots who would price the house at $249,900. Why the HECK would you do that when you get increased exposure at $250,000? What are houses…check out aisle snacks?
Comment by DD — August 15, 2008 @ 3:58 pm