For Sale by Owner – Know What It Takes
Now that the market has showed signs of recovery (and is very strong in some areas like Denver), some sellers may think about trying to sell their home on their own (FSBO) without using the services of a real estate professional.
Real estate agents are trained and experienced in negotiation. In most cases, the seller is not. The seller needs to realize their ability to negotiate will determine whether they can get the best deal when presented with an offer from a prospective buyer (who most likely will be represented by a professional real estate agent).
Some of the people/companies sellers must be prepared to negotiate with if they decide to FSBO:
- The buyer who wants to pay the least amount of money
- The buyer’s agent who solely represents the best interest of the buyer
- The buyer’s attorney (in some parts of the country)
- The home inspector, who works for the buyer and will almost always find some problems with the house. FSBO’s must be able to negotiate inspection objections and come to an inspection resolution
- The termite company, mold company and/or radon mitigation company if there are challenges
- The buyer’s lender – staying on top of contract dates and deadlines
- The appraiser if there is a question of value
- The title company if there are challenges with certificates of occupancy (CO), permits, judgments, powers of attorney, survey requirements, etc.
- Home Owner’s Associations if there are problems with documents, litigation, special assessments, etc.
- The buyer’s buyer in case there are challenges on the house your buyer is selling
Real Estate Bottom Line
The percentage of sellers who have hired a real estate agent to sell their home has increased steadily over the last 20 years. Let’s discuss how I can make the process easier for you and get you the most amount of money (net profit) in the least amount of time (days on market).