Selling your home yourself has become one of the
most attempted projects in the business world today.
It is, beyond a single doubt, just like starting your
own business. You have many factors to consider;
price, budget, legalities, ad planning, copywriting and
open house planning. But where do you begin?

“For Sale By Owner” properties or FSBO’s (fizbo) as they are called, are an ever-decreasing band of risk-takers.  They venture into the land of pricing, marketing, screening, scheduling, showing and paperwork, with the goal of saving some money. It's often an experience they find less than rewarding.

The numbers (if not the sellers) tell the story.

According to the National Association of REALTORs Profile of Home Buyers and Sellers, just 12 percent of sellers chose the FSBO (“For Sale By Owner”) route in the last two years which is down from about 20 percent in 1987.

But more telling than the decline in FSBOs is the fact that 40 percent of all FSBOs sold their homes to someone they knew prior to the transaction. This means that only 7 percent of all home sales are open market FSBO transactions. The rest are simply unrepresented sellers in private transactions.

In the same survey:
· Eighteen percent of FSBO sellers indicated that preparing the home for sale was the most difficult task when selling without the assistance of an agent.

· Sixteen percent had difficulty in understanding and performing paperwork.

· Fifteen percent did not sell within their desired time frame .

· As for profit — after all is said and done, FSBOs don’t always come out with fatter wallets. Again, the numbers tell the truth.

· Homes sold with the help of a real estate professional during the same time frame, sold on average for 32 percent more than FSBO sales. The median FSBO selling price was $187,200, compared with $247,000 for agent-assisted transactions.

I usually do not give away information for free because others in my profession feel that we are in a "secretive" business.  But, here is the first tip.  Read it well then lets talk about the RISKS of doing it yourself and the REWARDS of having my help in selling your FSBO: 

Pricing Your Home

The most accurate determination of your homes “market value” when selling your home yourself is to have a professional appraisal performed by a qualified appraiser. These appraisals can range from $150 to $450 per report. NOTE: If you hire an appraiser for a full report, you are entitled to a copy of the report for your records. The report should include descriptions of comparable properties, adjustments made to market price and a scope of work. A qualified appraiser will hold a New York State Appraisers license as well as be a member of the national governing organization – the Appraisal Institute.

An additional and most widely used means of determining your homes market value is to allow aHUNT Realtor® to perform a comparable market analysis (CMA) that is similar to an appraisal but will provide a market price range vs. an exact market price. When requesting a CMA from a Realtor®, it is important to let them know the reason for the request.

Once you have received a price range from your HUNT REALTOR that your home may qualify for, setting the price you will ask depends on only ONE thing…your eagerness and willingness to sell. When the asking price is determined, it is recommended that you do some research around your geographic area as to what other homes are in that same price range and how your home compares.

One other fact that is widely experienced by FSBO’s in pricing for sale is that offers that come in on your home range from 6% to 10% BELOW your asking price. Buyers often believe that since there is no Realtor® involved in the transaction, the normal commission rate should come off of the asking price. That figure can go as high as 17% to 21% below your asking price due to the complexity of the offer and the seller giving away money and not knowing it.

For a Comparative Market Comparison Presentation and a copy of MyFSBOHelper book from HUNT REAL ESTATE, please contact our office at (585) 414-0855.