For Sale By Owner Alternative

August 24th, 2007 category: Real Estate Philosophy, Sellers

There are some consumers in the current real estate market that make the decision to go it alone, using the FSBO alternative (For Sale By Owner). Coming from the mouth of a real estate salesperson, my suggestion is: GO FOR IT.

I would much prefer that you call me to list your home. But, choices are available for those that would prefer to experience the process themselves. If you make this decision, especially in New York, you have the opportunity to wade through the less interesting (but critically important aspects) of your transaction with the assistance of your lawyer- the contract itself, various addendums that form additional caveats to the agreement, etc.

IN NEW YORK, REALTORS HAVE DECIDED, FOR THE MOST PART, NOT TO INVOLVE THEMSELVES IN THESE IMPORTANT ASPECTS from a fill in the blanks form. They CAN; they DON’T.

In observing attempts of homeowners to expose their properties, PRESENTATION is often lacking. This is very easily overcome by ordering PROFESSIONAL signage. Hit real estate signs on the internet, and any and all manner of signage for a FSBO will appear. Get consistent colors, with quality that will sustain weather.

A FSBO sign that looks…unprofessional makes a house appear less than urgent. Order signs that can be placed in the form of directionals- a small lead in on a busy corner (arrow) will increase interest. Be sure to obtain the permission of the property owner that will permit your small directional- while it’s true that the town owns a piece of our front yards, it’s courtesy that counts.

Obtain a web address for your property, i.e., GoDaddy. GET PROFESSIONAL, AND ABUNDANT, PHOTOGRAPHS. The more that your audience can understand the property, the better. Lousy photos negate the benefit of the Internet.
Utilize the available Internet opportunities: Zillow, Trulia, and CraigsList offer exposure. While the FSBO sites are also in abundance, my concern with these sites involve personal opinion- to expose your home only in this forum will bring you individuals that may be looking for a great buy via FSBO. You want individuals that want YOUR house, irrespective of real estate company involvement, at a price that is MARKET VALUE.

Here’s the kink with the process, which has nothing whatsoever to do with the real estate contingent: very often, FSBO buyers want a “steal”, and are very aware that you are not paying commission to an outside source. For this reason, if you find yourself with an offer, accept it only with an understanding of why the purchaser has arrived at their price. Have the buyers provide you with the comparables that compelled their offer, so that you can determine if you have a “real” buyer, or someone seeking to “steal” a property.

Get an inspectionperformed on your property BEFORE you list it. When arriving at an asking price, it’s imperative that you have a grip on the items that may well come your way when an inspection occurs- this should be taken into consideration when pricing your home.

Make sure that any offers have a pre-qualification letter from a bank. While often not worth the paper that they’re written on, you need assurance that your buyer has undertaken the lending process. Get permission, in writing, from the purchaser to speak directly with their loan officer. Your attorney will likely require a date for loan approval (as your real estate agent would)- don’t take it lightly.

Paying a real estate commission to a broker is an expected expense in the market. For that reason, if your property doesn’t sell after your efforts, or you determine that going it without the back up of a real estate company is just…not your thing, we’d love to hear from you- call us with any of your real estate needs or questions!

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This entry was posted on Friday, August 24th, 2007 at 12:46 am and is filed under Real Estate Philosophy, Sellers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses to “For Sale By Owner Alternative”

1. Paula Henry Says:
   August 28th, 2007 at 1:15 am

   Excellent advice for those who choose to go it alone! What appears to be an easy process usually ends up without a closing and the frustration is generally not worth the time and expense. I have found FSBO’s in Indianpolis who have traded many weekend open house for a few thousand dollars after 8 months on the market, while paying two mortgages. Some do achieve their goal and like you, if they want to try, go for it, but do it with professionalism.

2. laurie mindnich Says:
   August 28th, 2007 at 6:15 am

   Paula, while most might agree (and of course, I do) that marketing with the input of a real estate company provides more exposure, I’m seeing a number of people trying FSBO, but missing some elements that while obvious to real estate people, are less so for the consumer. Do I advise it? Only if, without attempting it, a seller will feel as though they “coulda, shoulda”. For those, I say, “go for it”, but make sure it’s well presented! It is definitely not for everyone- more work than most imagine.

3. Ron Williams Says:
   August 28th, 2007 at 6:39 pm

   I concur. I don’t feel that most FSBO’s have any idea how much work is involved, but I would rather they list with us after they have gotten the “coulda, shoulda” out of their system. Several of our most loyal clients had tried the FSBO route before coming to us.

4. laurie mindnich Says:
   August 29th, 2007 at 8:30 am

   Thanks, Ron. Some people truly are capable of selling their own properties; some try it, and decide that it just isn’t working for them. Either way, presentation is key, and to go it alone without understanding this aspect almost assures a frustrating experience.

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