Your #1 Question Answered...
‘Should I Sell “By Owner” or Hire an Agent?’
There are pros and cons that have to be weighed in making this decision. I work with both FSBO owners and listed properties, so I will not steer you either way, only show you the pros & cons of both. (Just for the record, FSBO owners do not pay for me for help, however they reciprocate with referrals of buyers who have ruled their home out already.)
Too bad there wasn’t a cheat-sheet to make it easier!
Oh wait… there is!
Jane’s Home Sellers’ “Cheat-Sheet”
Benefits of selling “by-owner”
No commission to pay at closing (Assuming you sell for the same dollar amount as the realtor would have, the commission you save could be 4% to 6% of your total sale price.)
Let’s use 5% of your expected sale price as an average to determine your estimated savings here: $________________
Next, put a personal estimated hypothetical value dollar amount next to each service below that a good agent should provide. After valuing the services below, deduct the dollar amounts below from the commission savings figure above.
$_________ Estimate your home value with preparing a Comparable Market Analysis (CMA) which compares your home in detail with current listings and recent sales in your neighborhood. This helps ensure that you price your home accurately from the start. Since about 80% of all your showings will be during the first two-months of your debut, it is important to be in a fair market price range. You only get one debut. If your home is snubbed by agents and home shoppers during its debut because of being over-priced, you will lose many potential buyers. And if you under-price you could lose too; unless you have maximum advertising exposure from the start to create a bidding frenzy because of the low price.
$_________ Review the CMA details with you and answer your questions
$_________ Craft marketing strategies to get maximum exposure and offers
$_________ Assist with personalized home staging concepts and ideas
$_________ Present your property to other agents with snacks or a lunch-catered open house for agents and brokers only (agent pays for luncheon or snacks)
$_________ Notify buyers from the agencies pool of buyers about your
$_________ Advertise and present your home to buyers with public open houses
$_________ Feature your home on many web sites, MLS and print advertising
$_________ Schedule showings of other agents, then follow up by phone with each agent to get constructive feedback. (Honest feedback is typically given to agents, but rarely spoken to the homeowner on follow-ups in fear of hurting the homeowner’s feelings)
$_________ Host open public houses and screen buyers
$_________ Share unique marketing strategies which open doors to a new slew of buyers if the home is not sold in 30 days
$_________ Verify buyer is prequalified for a mortgage or has cash on hand
$_________ Present written offers in full detail
$_________ Negotiate price and terms offers on your behalf to be sure it is the buyers highest and best offer
$_________ Draw up contracts and paperwork for attorneys to review
$_________ Coordinate appointments for buyer’s inspector, town inspection for certificate of occupancy and bank appraisal
$_________ Open the home for inspectors when possible to save you from having to take time out of your schedule
$_________ Coordinate with attorneys, title agents and mortgage reps for a smooth closing
$_________ Be there for support during the emotional experience
$_________ Be a liaison between you and the potential buyer
Why is the liaison task important? Some buyers want to meet the home owner face-to-face to try to read them and sum up their weaknesses or vulnerabilities before placing an offer. However, since kindness can be mistaken for weakness, this meeting is not advised.
Let’s do the math now:
Estimated commission saved by selling by-owner:
Total of hypothetical dollar values you placed on agent tasks listed above: $_______________
Estimated amount saved by selling by-owner:
If you do decide to hire an agent, ask if they are available on a full-time
basis. It is not a good feeling to learn that your realtor only dabbles after work in real estate when the contract ink is already dry, and you can't
reach them while they are at their other job.
Now that you know what to compare from, it should be easier for you to make an educated decision on which choice is best for your personal needs without having any doubts or having to look back and wonder.
If you decide to sell “by owner” please read my Do-it-Yourself Home Staging Tips. Either way, feel free to contact me. I will be happy to answer any of your questions and discuss any concerns you may have.
United Realty Group
Jupiter FL 33458
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