In order to save the cost of a commission, more and more people are attempting to sell their homes* themselves. Some are successful; some are not. I firmly belong to the school of thought that says, "Success is not accidental, and success leaves clues."
What am I talking about?
I spent more than 20 years as a real estate agent, then broker. Since 2002, I've worked at fsboamerica. Part of what I do here is to give "coaching" advice to FSBO** sellers. In both those lines of work, I've seen some sales efforts succeed and others fail. In order to predict whether you're likely to succeed as a FSBO, let's look at some of the common denominators of successful sellers so you can evaluate whether you're likely to fit into this category.
One strong factor is your personal experience. Have you bought and sold homes before? Failing that, have you had a lot of business experience? Or alternatively, have you worked in an area active in the home selling process such as the office of an attorney who does a lot of real estate settlements, a title company's office, an appraisal office, or the like? Having any of these types of experiences are pluses. Lack of them is a minus.
Another factor has to do with your personality. Do you like to gather information, evaluate it, and make a decision about what course of action to take? Do you feel pretty competent in this process and rarely second guess yourself? Are you willing to take responsibility for yourself and the outcomes you achieve? I'm sure I don't have to tell you that "yes" answers here are a big plus.
Do you have time to devote to the sales project? It is a real project and an important one. The truth is houses do not sell themselves (with perhaps the exception of a really hot market), someone EARNS the commission. It can be you, but you need some time to devote to it.
What takes the time?
First, you have to establish an asking price that will work. I'm not talking about what you WANT for the property. You know that. I'm talking about what price will not be a barrier to people coming to look at the property. You need to do the research necessary to know what comparable properties in your neighborhood have actually SOLD for and prices at which comparable properties are on the market for now. Research and evaluation are needed. Can you, and will you, do it? This step is critical to a sale.
Do you have the time (or money) to get your home ready to go on the market? This particular step has to be handled even if you use the services of a realtor. Unless a home "looks good for the money," it will not sell. It's important that your home "show well." Will you see to it that it does?
Are you willing and able to spend money and time developing a marketing program to sell your home? Huge sums of money aren't needed. Some money is.
Signs are cheap and essential. I'm talking about FOR SALE BY OWNER signs and LEAD-IN signs with arrows to direct people from the nearest high traffic street to your home. Lowe's, Home Depot, and most hardware stores have them. Will you buy them, install them, and REPLACE them when some jerk pulls them up and carts them away? For the 6th time?
Since most buyers begin their search on the internet, you need a FSBO listing on one or more websites. Some of these sites are free, or free for a period of time, and some cost money. Some of these sites have a goal of helping you sell your property. Some have a goal of having you throw up your hands and run to a realtor. Choose carefully, but get your property on the internet. Will you do this?
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Realtors typically work out a multi-media (internet/ print/verbal) marketing program for a simple reason; it works. Can you afford a series of ads in your local newspaper? Will you do them? Will you do them again and again? Change them? Change the price? Will you keep on keeping on until your property sells? Persistence does pay.
If your community has a commuting destination in a nearby city, can you afford (and will you) run classified ads in that city's newspaper?
While we're on the subject of money, let me throw in something a little "off beat." If you have a really good income, it's possible that you earn too much for it to make economic sense to sell your home yourself. If you earn more than you'd pay a realtor, why not just pay a commission to get the sale done, and spend your time earning your income or just relaxing so that you'll be refreshed when it is time to work?
The final questions to do with what you need in order to be successful at selling your own home have to do with technical tools and the ability to use them.
Do you have (or have access to) a digital camera? A printer? An answering machine that allows you to record the out-going message (so you can include information about your home for sale)? Can you or someone in your family use them? These are important in order to get photos (and/or home tours) on the internet, in brochures, and flyers. Buyers love photos and tend to NOT look at listings without them. Are you willing and able to put lots of them on your internet listing and include your listing's web address in your classified ads (as in, "see photos @ __________")? Most successful FSBOs are innovative and persistent in these areas. Will you be, too?
I'm sure it's no surprise. The more "yes" answers you can truthfully give to the questions posed here, the more likely you are to join the ranks of successful FSBOs.
If you have many "no" answers, finding a good realtor might make the difference between success and failure. If your financial situation makes this unworkable, you need to figure out how to turn your "no's" to "yes's," or find someone with whom you can "trade services" in order to get it done. Plus, we here at fsboamerica are willing to act as a "sounding board" for you in much the way a realtor would if you could afford to hire one, so that could help bridge the gap as well.
However you choose to approach it, I hope it's logical for you and that your outcome is successful.
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