FOR SALE BY OWNER: The Best Way To Go?

    On a recent listing appointment, my prospective client asked me what I thought was the worst mistake usually made by FSBO's (For Sale By Owner) - those homeowners who are looking to sell their home on their own, usually to save the real estate commission. I was quick to reply, "Without a realtor's assistance?" After all, if all you needed to sell a home was a sign on the lawn and an ad in the paper, wouldn't every home sell? Yet, according to the National Association of Realtors (NAR), 87% of FSBO's usually get frustated with the process and eventually list their homes with real estate agents. The reasons are numerous.

   Homeowners are too emotionally involved with their property to negotiate effectively. You're looking at the house's history (all the work and money you've put into it); the buyer is only interested in its future.
   Buyers visiting For Sale by Owners properties usually have a yard sale mentality. They're looking for a deal. They've already mentally slashed thousands off your asking price because they know you're not paying a real estate commission. The result is you'll make the same or less than working with an agent, and have to do all the work yourself.
   According to NAR, you'll make as much as 27% more by selling through an agent. There are two main reasons for this: first, savvy agents ensure fast turnover through realistic pricing; they base their figures on sales of homes that have actually sold in their area. And secondly, 95% of all qualified buyers work through agents instead of buying directly, because agents do all the research, consulting and negotiation at no cost. Since purchases are made based on emotion, you need to get that 95% of buyers through your front door so they can fall in love with the home and compete against each other to buy it.

   Bottom line: You might actually sell your home on your own but without using an agent to expose it properly, you'll never know how much money was left lying on the table.

Ms. Dawn M. Barclay
Associate Broker
Prudential Rand Realty
268 S. Main Street, New City, NY 10956
Phone: (845) 893-0173
E-mail: dawn.barclay@prudential.com
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