FOR SALE BY OWNER
the real truth about fsbo's
Before selling on your own take the time to reseach all your options and understand any and all repercussions. Mistakes made while showing your home, negotiating or completing paperwork could become very costly and could even end in lengthy law suits.
Don't forget to talk to a Realtor as well..... you may be surprised how a Realtor can help.
Buying or Selling....
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fsbo's can't list on mls:
A home owner cannot simply decide to sell their home and advertise a listing on the MLS system. MLS is used by licensed Real Estate Agents as part of a membership in Organized Real Estate. Because they can't just sign up for an MLS listing, they will not have access to advertising on Realtor.ca. (One of the most used websites by individuals looking for properties). The only way a home owner has access to advertising on MLS is if they use a flat fee company that will advertise on MLS for them, for a set price.
flat fee mls listings - how it works
Companies are now advertising that they can list your home on the MLS for a flat fee, giving you the home owner all the control so you can save money in Real Estate fees. These services require you to pay a flat fee upfront, which can range from $500-$2000. Also, there are add ons that can cost varying amounts. If you require any extra help beyond what your package states, you will have additional charges. As the home owner you are solely responsible for ALL showings, offers, marketing, selling, etc. All service fees are paid upfront, so they make money regardless of whether your property sells.
buyers may get intimidated
Potential buyers spend less time in a home during a viewing if a home owner is present. Buyers don't feel comfortable discussing the pro's and con's of a home or what potential renovations could be completed in front of the owner, even if the owner is showing the home. This reduces the buyers confidence and enthusiasm towards the property. The potential buyer is less likely to even consider placing an offer.
Everyone believes that their home is the best on the block, which can lead to overpricing. The average person doesn't have enough information to be able to complete a proper Market Evaluation of their home. Just because two homes look similar from outside doesn't mean that they are comparables. Sq ft, bedrooms, bathrooms, finishes, quality of renovations..... all come into play when valuing a home.
less co-operation from realtors
The most important thing that most FSBO's don't realize, is that Realtors working with buyers typically don't show their homes beacuase of all the unknowns. Realtors work on a commission and if there is no agreement in place to guarantee they will be compensated for services provided they will move on to the next listing with a fellow Realtor with whom they will have a guaranteed commission agreement.
are you ready to negotiate?
Another thing to think about is that as a seller who is not completely knowledgeable in the Real Estate market how are you going to back up yourself up in negotiations, especially if you end up negotiating against a professional. Realtors are trained to negotiate for the best interest of their clients in all situations regardless of negotiating with another Realtor or a FSBO.
qualifying potential buyers
Homeowners may not have the necessary knowledge or resources to be able to properly qualify potential buyers. Realtors have experience working with many types of people and know how to spot someone who is just wasting your time. We also have the proper contacts to ensure potential buyers are able to get the help they need for financing and can answer all questions for them about the sale process. As well, when someone walks into your home you don't know anything about them and the information recieved may not be accurate. When working with a Realtor we make sure we do proper follow up and find out who we are working with and ensure all information they provide is accurate.