Are You Up for Selling Your OWN Real Estate?
As I’m sure you are aware, the real estate industry is experiencing one of its worst down markets in history—at least locally it is. The last thing you want to do is pay commission to a real estate agent, right? Not to mention the fact that you’re nearly positive you can sell your own home just fine without having had any experience in doing so—it’s EASY!
Before sticking a “For Sale by Owner” sign up, however, you’ll need to make sure that you’re ready for the work and headaches entailed in doing so.
- Time. Yes, you absolutely can sell your real estate on your own without the help of an agent but, it takes a lot of preparation and time. How much is your time worth to you? How much time do you have to spend preparing, pricing, marketing, procuring a buyer, showing and quite possibly even selling your home? Before you set out on your own, make sure you can afford the time and energy investment requirements.
- Service and value. Going it alone, you’ll lose out on a wide variety of services offered by Realtors®. For example, many agents now provide home staging services as well as extensive advertising and marketing services both online and off.
Exposure. You also need exposure to buyers—real estate agents work together to help their sellers procure buyers for them. Realtors® also belong to various organizations which allow sharing of listing information among other Realtors® and the public—your buyer. As well, real estate marketing is our business—we do this full-time and we realize that 87%+ buyers find their homes online—on our sites.
- Legalities. Selling a home involves contracts, closings and a multitude of legal issues that can make or break a real estate sale. Real estate transactions have occasionally led to outcomes that were unexpected, including lawsuits. A professional helps ensure that the contracts are legally sound, binding and carried out to the letter of the law.
- Market knowledge. Realtors® have instant access to current market information. We are able to establish an accurate selling range within minutes after viewing your property. Since the real estate market is in constant fluctuation, it’s important to have a complete knowledge of the market before pricing your own home. Otherwise, your risk underselling or overpricing your home. Public online sites’ estimates and comparable sales are NOT accurate and can cause you to make a costly mistake right out of the gate with your pricing.
You will also need experience with legal contracts and excellent negotiating skills. Recent NAR reports that only 2% of homeowners who market their home for sale are actually successful—and many times, the buyer is a family member or a friend.
Unless you have your finger on the pulse of the market, chances are a costly mistake can and will be made.
Can you sell your own real estate? Absolutely—but, can you really afford to?
If you’re trying to sell your Charlotte NC home and need the expertise of a professional, I can help. Call me at (704) 491-3310 or email me at Debe@DebeMaxwell.com for more information.
Search Charlotte Homes for Sale
Search Charlotte Neighborhoods
"Great Post" Debe!
VB ;-)
Debe good points. If it were so easy none of us would be in the business.
I agree with John - there would be no need for a professional real estate agent if it were so easy to sell a home on your own. On the sale of my previous home, I even co-brokered the deal with another agent. I listed my home, but she negotiated the offer on my behalf... real estate can be an emotional roller coaster as just as many of my clients cannot part emotionally from their home and their emotions become a part of the negotiation process - I had my separation issues too which would have lead me to not be realistic when negotiating the offer. Thankfully, I was smart enough to ask for help early on.
That is a totally AWESOMEpost!, I've been working on handouts to give 4sale by owners, yours blows mine away. Redraft tomorrow.
VB: Aren't you so nice! Hope you had a fab Fourth!
John: Exactly! I wonder if the figures are a shock to anyone in this business? Probably not but, likely they are to sellers who have heard of 'others' doing it!
Jennifer: I do the same thing with the sale of my own property--and like you, I need someone there to keep me strong when I have an 'emotional' attachment!
Randy: Well, thank you so much! I just did a handout with a booklet and thought I'd put it up online in the event that anyone is seriously considering this any more! Gone are the days of being successful with FSBO's and it worries me that many are forgetting the carry costs--vs. just paying an agent to get the job DONE!
Debe, Beyond awesome post! Suggested for a feature immediately. Many moons ago I developed a seminar with a partner agent on exactly this subject. We told everyone in attendence how to do and what to do.........and what to expect. My agent partner ended up with several listings from every seminar. Like an onion, peel it back and make it accessible.
Debe
It's very challenging for home owner to sell their home.
Good luck and success.
Lou Ludwig
Deborah: Well, thank you! And, I love the onion analogy--that's exactly what I wanted here! I recently heard that someone was thinking of doing this on a property in a neighborhood--a cul-de-sac--tucked away on a street that passersby just don't get to. I asked what type of marketing they were going to do and they asked me what they needed to do!!
Lou: Thanks! It is and remembering to keep in mind the carry costs is SO important too!
This one is getting bookmarked for future use, you really hit the ball out of the park with this post. It amazes me how many people think that selling a home is putting a sign in the front yard...I am suggesting for feature, great job
Thanks, Gerry! I think that alot of those thinking of doing a FSBO, have only sold maybe one home in their lifetime--and that was many years ago. Things have changed dramatically and they are forgetting that to hold onto a home for an extended period of time actually costs them in the long run.
Hi Debe, You habve many excellent point in your post. Nice work!
Thanks, Dan! Thanks for stopping by too!
A lot of things FSBOs do not think of when putting their homes on the market. They encounter problems along the way and most end up listing with an agent in the end. Great overview, Debe. It could save people considering going out on their own undue hardship.
Hi Jane! Thanks and I hope so! I've seen a very few of them around and they all just sit there--I can't imagine going it alone right now, especially!
Absolutely terrific post. When you think about all we do to price, market a listing, negotiate out a purchase and see it through to closing, I think once again that we just don't charge enough. I wish I could think of a nice way to send this to a friend of a friend who is "going it alone".
Suggested for a feature and I'm going to reblog. Thanks.
Hi Debe...great advice, by selling a home yourself, you have not eliminated the Realtor, now you are the Realtor. Be sure you do a good job, or you'll get fired and not get paid if the house does not sell.
Cheers, should be another feature...Well Done Debe
If a FSBO allows buyers agent's to come in and earn a commission, they have dropped half of their bad plan.
If a FSBO holds out for an unrepresented buyer, they have kissed the majority of buyers goodbye.
If a FSBO actually finds an unrepresented buyer, there is still one more huge problem:
The seller wants to save a commission.
The buyer wants to save the same commission.
They cannot both succeed.
Debe - an excellent overview of the reasons many unrepresented sellers should not go it alone, or at least issues they should give very serious thought to before they decide to do so. Some succeed, but in our tough market it's much more challenging than when it was a seller's market.
It seems that many find out the hard way, after wasting time, that it is in their best interest to work with a REALTOR.
Jeff
Debe
but you make it sound so "easy"
unfortunately they can always use a $500 "I'll list in the MLS for you" agent and offer a 4% commission to the buy side agent.
Debe, Another terrific post. Well written, which is not a surprise from you. And again, it is another stunningly beautiful in terms of design. You are like that girl from an old German fairytale. You play the flute, and we all go wherever you call us.
Debe,
Fantastic post!
Jim Hale made the most over-looked point. Sellers think that they will save the full commission. Really? If sellers are not offering a buyer agent commission, they are nearly shutting them selves out of the market completely.
Also, with all of the appraisal issues, how is a seller going to "consult" with the appraiser when theirs comes in low? I have successfully articulated a favorable result a handfull of times in the last year. In one case, the amount that was added by the appraiser was equal to half of my commission. Can you do that Mr seller?
Debe - great post and straight to the point...excellent job.
I strongly support the home owner who decides to sell his own real estate.
Then I strongly support his decision to engage an experienced listing agent when the house didn't sell.
Good morning Debe,
You have said it all in a nutshell! Great post..so well organized, concise and definitely on target..excellent job!
Debe, great point, it was mentioned above that if they don't pay a buyers commission no agent would show it and if they do pay a buyer agent commission then they are doing all that work to save what....? I see less and less FSBO signs these days.
Very well said Debe. This one is worth a re-blog
Great post, thanks for sharing your thoughts. Congratulations on being featured.
Exposure - unlikely that an unrepresented seller can begin to match the reach capibilities of a real estate company ! and all of the buyer prospects now captured as CLIENTS !
Debe,
The risk associated with selling your own home today is enormous. A simple contract in Maryland nowadays is 35 pages.
Rich
Debe - Very well put together post! Many strong willed people who "know" they can do it themselves must try and fail before going with a professional. No amount of logic will sway them until they see it happen themselves.
Debe:
That 2% figure certainly speaks volumes for why a home seller needs to engage the services of a professional. There is so much that goes into the sale of a home. The lay person is simply not going to be successful at it, going alone.
Forget about what if it doesn't sell. It won't.
What if
Debe, you've obviously done a lot of work in preparing this document and you are to be congratulated, and I'm goinb to reblog it so more people can see it.
Bill
Debe,
Great post as always. You do such a wonderful job of presenting current topics. When an agent does a great jon in a short amount of time, I have observed sellers and they think well if she can do it so can I...how hard can it be??? you and I both know the coordination, time, money and effort it takes to be good :)
Betsy
Very thoughtful post. And Jim Hale (post #17) makes excellent points as well. Thank you.
Debe, the average homeowner doesn't see what is involved in selling a home. They just see agents showing homes and writing a contract. That's the easy part. Getting the home to close is the monumental task. Great Post!
Debe,
Can't blame folks for trying. I've listed and sold many former FSBOs, who didn't realize all that was involved. Your post will help with that!
Debe
Fantastic post!!!!! Homeowners only recognize the time, effort and money it takes to sell a home when they actually engage with a REALTOR. I have had several clients ask me to do a market evaluation of their home and then they tell me that "they will try" to sell their home on their own - the result- all have called (with one exception) me within a month and have asked me to list their home!! The one who did not call did sell their home to a neighbor - I graciously sent them a note - they have sent me numerous refferals since :)
Debe,
Great Post!
Maybe it falls under "Marketing Knowledge," but I would add to your list: Objectivity.
I'm red-faced to say that it happened to me personally when, as a broker, I listed MY OWN House. Homeowners can be too close to the situation to make the best financial decision.
"But Brian, your house is worth more because or a, b, and c."
I left about $20,000 on the table.
I enjoyed reading your post, and felt that you made some excellent points in favor of using a real estate agent. This is what I have experience recently when I approached a local FSBO, the first thing that he said to me is I do not need anagent I am working with an excellent escrow officer and she is willing to give me all the forms and has made some excellent suggestions on what I need to be prepared for when interviewing a buyer. Yikes, I was dismayed over hearing this.
I would not go in & tell my doctor that I was capable of performing surgery on myself simply because I have watch Dr. Oz on TV, and yet I hear and see all the time quasi - unlicense professionals offering real estate advice.
Hi Debe....Congratulations on another Great Feature Active Rain Post.
Cheers
Good post Debe! I think the most fun part of being a FSBO has to be realizing that you are bait for all of the new agents in the local broker's training program. And these guys will stalk a FSBO until they list with somebody.
Perfect post, Debe. Eloquent and succinct. I suspect one key reason a home owner would be tempted to sell their own home is not because they know how... but because they have no idea of how hard it is. Your article clearly identifies key challenges every home seller faces. The goal of selling your home isn't simply to get the highest price... It's to successfully transfer title and close escrow. This is involves properly promoting your property to find the right buyer who will pay the right price within the right timeframe. This is not an easy task, as any well-trained real estate professional can attest.
Great...and I thought I had most of this subject covered....HA, I certainly have not! I especially like the sign with the cob-webs...perfect.
Debe
This reminds of all the dental equipment cleaning tools that you can buy and use to clean your own teeth. It is expensive up front, time consuming and takes practice to be really effective. OR.....you can go to the dentist, pay his fee, get it done and move on.....Both work and are available for your choice......I have done both and at this time, I choose to go to the dentist.......
Debe, so well put! Thanks. And Richie, #47, I love your comment!
Great Post, I bookmarket to throughly study later today, thanks for all you do.
As a real estate agent selling my own home would not be easy, so much emotional attachment. I would definitely get a friend in the business to list for me to handle most of the comments coming in.
In our market it is almost impossible for FSBO's to get the exposure that they need to sell.
Debe, these are all excellent reasons why sellers should enlist the aid of an experienced Realtor®.
I know that it is a tough decision for a seller to decide, but even with the extra cost, they are far better off letting a professional handle the transaction for them. The pressure is off a little, the hours that go in to marketing a home are handled and being good at negotiations is important.
Debe - This is a terrific post about the value of using an agent rather than going it alone. I didn't realize that only 2% of FSBO's were sucessful - interesting statistic!
Debe - great post and it can be difficult to sell your own home. Time and exposure are key elements for sure, and knowledge of navigating the way through a transaction.
Great post! I have a list of 15 FSBOs within a 5 miles radius of my house. One has had their sign out since November of 2009! The biggest excuse we hear in this area is "we can't afford to pay an agent." I say they can't afford not to. This particular couple have wasted a tremendous amount of time already. The saying is true, "Time is Money".
Great Post! I love marketing FSBO's I love the challenge of converting them.
Though all of your FSBO points are valid, the one that sticks out most is that only 2% of sellers who try this on their own are successful...
Good article, Debe. How did you do the red ink on the post? What program did you use?
Debe,
It's the legal thing that bothers me most. My husband and I have tried with an Intermediary to juggle both the Sellers and the Buyers and it was very, very hard on the marriage. We try to avoid it if possible. Of course the extra money looks good but geesh....too much on the line.
Debe,
at first I thought, you are asking real estate agents only - and my answer would be similar to Jennifer's in #2: I would cobroke. Even with all the recourcs one has as an agent, the emotional attachment might cloud the judgement. I love doing market ananlyses, and my pricing is well thought through, but I have hardest time pricing my own house, no matter what approach I use.
Good points, I don't think most people really know how much time and money we put into selling their homes but the best way to combat that is to be transparent. Show them your hours, show them your costs, that way they won't think that what we do is so free and easy.
Good points, I don't think most people really know how much time and money we put into selling their homes but the best way to combat that is to be transparent. Show them your hours, show them your costs, that way they won't think that what we do is so free and easy.
Debe - This is such an excellent post and something all potential FSBO's need to consider. There is more to selling a home then putting a sign in the yard.
Debe- this is a great post! Most of the time, FSBOs will become discouraged by the lack of attention to their homes.
This is a wonderful list of reasons a Homeowner should not sell on their own. Very details and solid points. Also, I love Lenn's comment... she supports the FSBO and then supports their decision to call an agent when the home doesnt sell. Classic.
Hi Debe~ Great post about unrepresented sellers! I can't blame them for trying. I just don't think they realize what they just don't know!
Here's one everyone can use: After trying for a year on their own, reducing the price by almost 20%, having two offers fall apart, the sellers got back in touch with me. Two months later, we're looking to close on Friday.
Debe, this is awesome! I am going to reblog this too (as of this comment you already have 17 reblogs!)
Great post! You're visual presentation is very nice! With things the way they are in this market, it's hard for agents to get their listings sold, so it's surprising to me that people still think they can sell their own.
A while back I saw a statistic on the number of lawsuits in real estate where for sale by owner sales were involved. It was far above Realtor® involved sales. I need to look for that to help add to the reasons to not do this.
Holy Guacamole! I leave for a few hours and come back to all of these wonderful comments! Thank you so much for stopping by!
I agree that one of the LARGEST concerns regarding FSBOs is that there have historically been a much larger percentage of law suits for homeowners than if they're represented by a REALTOR--that's our JOB!
Also, like NAR's comparison to the general public performing an appendectomy, I would never try to even repair my own car! Okay, maybe that's not a fair comparison but, I have no idea where to begin and a wrong wrench size and it could cost me FAR more than it would have cost had I just taken it to a professional.
Thanks for all of the re-blogs too! Hopefully it will help a few consumers in your area to recognize the importance and the cost effectiveness of using a professional--and keep them out of court too!
Have a great evening and thanks again for your comments!
Nice reminders, Debe, on all that we do. I am reblogging for sure.
I forget that many posts are written to consumers... and I know that many of yours are... So, the first thought that came to my mind was about agents selling their own home...
Debe ... I ended up letting another agent sell my house - it just was too close to me! pippa
What an AWESOME post Debe - So many think it is that easy to put up a sign and a buyer will come. If it were only that simple :)
It is easy for a sign to go up as FSBO but I did not know it was 2% aren't sold. Is that a national stat? I don't support the FSBO's when I have someone in the car but I will call later to tell them the opportunity could have happened with a recognized brokerage, without the extra details.
I am bookmarking for the future.
wow what a great post !! amazing info here, Thank you for sharing.
Debe, from what I am seeing, buyers want easy showings. If anything is difficult at all, including scheduling a showing, they will simply pass. There is just too much inventory.
Debe,
Great points! For the majority of homeowners, sellling their own home is harder than they ever realized. As realtors, we are always waiting to offer our services when needed to help them get their home sold.
Debe,
GREAT POST! Sellers need to truly understand that a good Realtor who is knowledgeable of their market area is worth the fee as most Good Realtors 1st priority is to help people not just get a check.
Cheryl: I use Kompozer - do a Google search and look for a free download. It's much like MS Word--just write, change the font color and then cut and paste over into your AR blog! Add the photos right from ActiveRain too. It's really very easy--you will love it!
Lane! You know I 'lure!' You've got to read the post and find out, don't you?! How's REBar planning coming along? Let me know if you need any help!
Pippa: I do the same thing--it's not worth my emotions potentially getting involved!
Roland: Thanks so much! If it were that simple, we'd be in another profession--or in the unemployment line!!
Ken: One of my CRS instructors gave me that figure--it's from NAR but, I have not looked to see where it's published. I thought that was a staggering statistic too!
Dinah: You're right--and I think that its' sad when they see how difficult it is first-hand. It winds up costing them FAR more time and money than they anticipated--and perhaps even legal costs that they never imagined. That's why we do what we do--offer our professional services!
This is a great post and very deserving of a feature! Congratulations on such a well written post that is not too "over the heads" of your target audience.
Keep smiling,
Karen
Great posts about pointing out the negatives of going the FSBO route.
Debe,
Now at 86 comments, I am back, and what a good match of a blog and comments. And what a positive reinforcement of the pros and cons for the inquisitive sellers.
Came out very nicely, indeed
Jon--Quite the contrary from the previous one, huh?!! ;-)
And, as always--THANK YOU! I want to save your first comment as the best one I've ever received!
Debe - What a fabulous post, and well deserved feature! I love the string of comments - they have added so much to this post! Great points made - I am presently watching some friends go through the exercise of trying to get their home ready to FSBO, and this is a great article to share ....
Well said! Its about value and agents provide value.
Great posts, we really earn our commissions. I love the graphics you used to emphasize your points.
Debe, this is great information for all those who think that selling their own home is easy.
Hi Debe, you make great points on the challenges of selling FSBO and really bring home the question of whether we can afford to do that. Thanks
We should all re-blog this in our respective markets. An awesome post Debe
Thanks, Ellie and everyone who re-blogged this and took the time to comment! Hopefully your markets will bring you many homeowners who will understand that our job is not easy--we just make it look that way!
Have a fabulous Friday all!
Well written Debe, at first I was reading it as if you were asking that question of a Realtor selling their own property... oops. Had to reread after the comments... You are so right with the points you make.
However here in our market you don't see many FSBO signs out at all. They have gone the limited service route and paid just to have their home in the MLS. It's these folks too that need to consider the consequences of going alone.
Congrats on yet another great post!
Debe, great post! I am going to re-blog it.
Hi Debe....congratulations on yet another great feature post...You're Hot babe :O))
Great information for a home owner considering selling their home themselves
This is just fabulous. An amazing post and so valuable for all and so beatifully presented. I will share this. Thanks, Debe.