Selling a home is a time-consuming process – especially if you do it yourself. It is known as a For Sale by Owner (FSBO). There is a lot involved with the selling process — market research, negotiations, legal documents, handling negotiations, and more. It’s a detailed process that requires a lot of expertise to navigate effectively. That’s one of the reasons why the percentage of people selling their own home has declined from 19% to 8% (See graph below):
When selling a home, you need to understand how much time and effort it takes to sell your own home, and here are a few of the things you need to think about before putting a sign in your yard.
1. Make a Good First Impression
While it may sound simple, there is a lot to consider when preparing your house for sale.
• Do you need to take down your personal art and family photos?
• What’s the right amount of landscaping to boost your curb appeal?
• What wall colors are most appealing to buyers?
If you do this work on your own, you may invest too much time and money into the wrong things. Your time is money – don’t waste it. A real estate broker can help steer you in the right direction. Since we are currently in a sellers’ market, you don’t want to delay listing your house by focusing on things that won’t change your bottom line. These market conditions may not last, so lean on your real estate broker to capitalize on today’s low inventory while you can.
2. Price It Right
Real estate brokers have information on what sells and how to maximize your profit. They are experienced with looking at comparable homes that have sold in your area and understand what price is right for your neighborhood. Brokers use that data to price your house appropriately, maximizing your return.
You do not have any experience when you sell your own home. So, you’ll have to do your own homework on how to set a price that’s appropriate for your area and the condition of your home. Even with your own research, you may not find the most up-to-date information and could risk setting a price that is not accurate. If you price your house too high, you could turn buyers away before they are even in your front door, or you can run into problems when it comes time for the appraisal.
3. Maximize the Buyers and Profits
For Sale By Owners may actually net less profit than sellers who use an agent. One of the factors that can drive up profit is exposure. Real estate agents can get your house in front of more buyers through their website, MLS listing, social media, agency resources, and other proven sales strategies. The more buyers that view a home, the more likely a bidding war becomes. According to the National Association of Realtors (NAR), the average house for sale today gets 5 offers. Using an agent to boost your exposure may help boost your sale price too.
4. Navigate Negotiations
As a For Sale By Owner, you will have to handle all of the negotiations when selling your house. Here are a few of the people you’ll work with:
The buyer, who wants the best deal possible
• The buyer’s agent, who will use their expertise to advocate for the buyer
• The inspection company, which works for the buyer and will almost always find concerns with the house
• The appraiser, who assesses the property’s value to protect the lender
As part of their training, real estate agents are taught how to negotiate every aspect of the real estate transaction and how to mediate potential snags. When appraisals come in low, they know what levers to pull, how to address the buyer and seller emotions that come with it, and when to ask for second opinions. Navigating all of this on your own takes time.
5. Legal Documents for Selling a Home
How much free time do you have to review the fine print of the legal documents? More disclosures and regulations are now mandatory. It can be hard to know and truly understand all the terms and requirements. Use a real estate agent as your shield and advisor to help you avoid potential legal missteps.
Selling your house on your own is a lot of responsibility. It’s time-consuming and requires a lot of effort and expertise. Before you decide to sell your house yourself, let’s discuss your options so we can make sure you get the most out of the sale. Contact a real estate agent at Wenzel Select Properties today at (630) 430-4790.
Wenzel Select Properties offers expert real estate assistance tailored to meet its customers’ unique needs for buying or selling a home. Our Downers Grove Real Estate Company is conveniently located at 4941 Main Street. We are in the heart of downtown Downers Grove by the train station.