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Failure Selling One’s Own Home
by Lawrence Allen
In the United States, less than 10% of all For Sale by Owners
(FSBOs), are successful in selling their home by themselves.
That's because most people just give up because they don't
realize from the beginning the difficulty and complexity of the
job ahead. But that's not the only reason. Here are the seven
most common mistakes FSBOs make when selling their home.
1. Failure to price a property at what market conditions will
bear.
The number one reason that most FSBOs don't sell their homes
is that they price it too high. Many start counting the money
they're saving on commissions and how much their sale will net.
If your house is priced higher than other comparable houses in
your market, you will not get the offers you need to sell!
2. Underestimating the time, energy, know how, ability and
effort needed to sell a house.
One of the keys to selling your home effectively and profitably
is complete accessibility. Many homes sit on the market much
longer than necessary because the owner isn't available to show
the property. Realize that a certain amount of time each day is
necessary to sell your home.
3. Not being prepared to deal with an onslaught of buyers who
perceive FSBOs as targets for "low balling".
Another challenge of selling a home is screening unqualified
prospects and dealing with low-ballers. It often goes unnoticed
that much time, effort and expertise is required to spot these
people quickly. Settling for a low-ball bid is usually worse
than paying any type of professional fee or commission.
4. Lack of knowledge about financing options for the buyer.
Are you prepared to answer questions about financing? One of
the keys to selling is having all the necessary information the
prospective buyer needs and to offer the buyer options. Think
about the last time you purchased something of value, did you
make a decision before you had all your ducks in a row? By
offering financing options, you give the homebuyer the ability
to work on their terms. You'll open up the possibility of
selling your home quicker and more profitably. It's critical
that you locate and establish relationships with a network of
financing experts that will help you accomplish your goal
profitably.
5. Not fully understanding the legal ramifications and all the
necessary steps required in selling a home.
Many home sales have been lost due to incomplete paperwork, lack
of inspections or not meeting your state's disclosure laws. Are
you completely informed of all the steps necessary to sell real
estate? If not, you may want to consider consulting with a legal
or real estate professional.
6. Lack of experience in handling the legal contracts,
agreements and any disputes with buyers before or after
the offer is presented.
Are you well versed in legalese? Are you prepared to handle
disputes with buyers? It is always wise to put all negotiations
and agreements in writing. Many home sales have been lost due
to misinterpretation of what was negotiated.
7. Not contacting the necessary professionals... title,
inspector (home and pest), attorney, and escrow company.
Are you familiar with top inspectors and escrow companies? Don't
randomly select inspectors, attorneys, and title reps. Like any
profession, there are inadequate individuals who will slow,
delay and possibly even cost you the transaction. Be careful!
Selling a home requires an intimate understanding of the real
estate market. If the property is priced too high, it will sit
and develop a reputation for being a problem property. If the
property is priced too low, you will cost yourself money. Some
FSBOs discovered that they lost money as a result of poor
pricing decisions. In the final outcome, these mistakes far
outweighed the commission they would have paid.
Lawrence Allen has over 15 years experience as a marketing
professional and a successful real estate investor. The For Sale By Owner (FSBO) Hassle-Free Home Sale System has
received many praises from real estate professionals and home
owners alike:
http://www.fsbosaleshelp.com
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