How to Do ‘For Sale by Owner’ the Right Way

Let’s Start with the Basics:

There are a lot of misconceptions we’re led to believe about the For Sale by Owner (FSBO) market. However, the digital age is empowering more people than ever to make their own deals and saving thousands on the realtor’s commission fee.

If you’re looking to make the most profit possible from selling your home, you might be tempted to put up a “for sale by owner” sign in your yard instead of hiring a real estate broker. Brokers usually take a commission of around 5-6% of the sale price, which can add up to as much as $18,000 on a $300,000 house. This is a significant amount of money, especially if you still have a mortgage to pay off.

According to Nico Jodin, CEO of beycome, a real estate service that helps homeowners sell their properties themselves, selling your home on your own can help you keep more of your profits and avoid hefty broker fees. However, selling your home without the help of a reasonable Flat Fee MLS or For sale by owner provider can be tricky: so it’s essential to do it right.

Realtors VS. FSBO

FSBO is more common than you think. For instance, FSBO accounts for 40%+ of all residential real estate transactions in Europe. In the U.S., it’s only 6 to 8%.

Why such a large discrepancy? Most people in the states are led to think they can’t handle FSBO, or there are certain benefits to working with an agent.

For instance, many believe their home will sell for more with a realtor, but that’s not true. Independent studies by Stanford University and Northwestern University concluded FSBO sales were 4 – 7% higher than if a realtor had been involved. Other studies disagree with this premise and are funded by the National Association of Realtors (NAR).

The selling process is also much faster with FSBO. While agents have other clients to focus on, you can place the listing yourself and adjust as needed without waiting for a third party to do it for you. More than that, the listing will reflect your authentic voice as a homeowner. You know best all the features that make buying your property a worthwhile investment.

If you still feel you lack experience or knowledge, you can easily hire a legal professional like a real estate lawyer to take care of specific tasks for you for much less than the cost of an agent. For instance, a lawyer can draft contracts, leases, and any financial documents that need to be secured. An attorney offers sound legal advice and helps you review all transactions.

🏠Why Technology Changes Everything?

FSBO is quickly proving to be more than just a trend. Increased access to technology and inexpensive tools caused this meteoric rise. Today, nearly 94% of consumers search for their next new home online ( up to 99% from age 23 to 56 age. This places more authority in the hands of landlords and homeowners, who save the money they would have spent on a real estate agent fee.

The increased use of dynamic technology has some significant implications for realtors and brokers moving forward. Online marketing tools level the playing field for those favoring FSBO and FRBO options. This new empowerment has taught them a valuable lesson that brokers have been trying to cover up for years: homeowners are more than capable of handling the task.

Anyone can access and use local real estate data. Anyone can stage their home and snap photos for listings. Anyone can host the perfect showing. And they can do all of this from their home offices. This means homes, condos, and apartments spend less time on the market and you don’t have to wait for a middleman to accomplish pressing tasks.

How to success in your FSBO transaction?

Smart consumers must now find new approaches for selling and renting to succeed in the market. It doesn’t take long for first-timers to see the benefits quickly. The average consumer will save a 6% commission on the sale of their home. So if a property is sold for $250,000, then the savings is $15,000. This money can be invested back into the property, or for a future one. So how do you snap up some of these benefits on your own?

Many new companies are opening their doors for precisely this purpose. beycome for Sale by Owner, for instance, offers the tools you need to market your home and maximize its value. More than just a Multiple Listing Service (MLS), it gives detailed instructions to guide you through the FSBO or FRBO process with access to local professionals, such as real estate lawyers, to complete the sale. These businesses do not take the standard 6% but rather a much smaller one-time fee.

Here are eight tips to help you successfully sell your home on your own and get the best possible price for it:

You can easily be prepared for FSBO transactions by:

1: Price Your Property Right:

One of the most challenging parts of selling your own home can be pricing it correctly. The value of your property is ultimately what someone is willing to pay for it, but it can be difficult to determine that number.

Real estate agents typically provide a comparative market analysis to help you price your home appropriately. This analysis looks at your house’s features and condition and compares it to recent sales in the area to determine a suitable asking price.

If you’re selling your home without an agent, you can still do your own market analysis using free online resources like beycome free property estimation, Zillow Zestimate or Chase . Researching the local housing market to get a better understanding of pricing and demand for properties in their area, and check your local tax records for recent sales data in your neighborhood to get an idea of going prices. This information can help you make an informed decision on the best asking price for your property.

Once you choose a range for your selling price, write out the details of your property, such as square footage, number of bedrooms and bathrooms, and the unforgettable details that make your home unique. Once you take the proper photos, simply place the listing online.

2. be ready to show and prepare your Home:

Once you have priced your home, the next step is to prepare it for listing and showings. To make your home more attractive to buyers, it’s important to clear out any excess clutter, improve lighting, and make any necessary cosmetic repairs.

While it’s important to prepare your home for listing and showings, some may wonder if hiring a professional photographer is really necessary. However, studies have shown that professional real estate photography can make a significant difference in the selling process.

Unlike taking photos with your smartphone, a professional photographer has the equipment, experience, and knowledge to capture your home in the best possible light, from the ideal angles and with the right composition. Professional photographers use high-quality cameras and editing software to enhance the photos and showcase your home’s features and beauty.

Research has shown that high-quality real estate photography can increase the price per square foot of a property. The Wall Street Journal reports that properties with better photos can sell for anywhere between $935 and $116,076 more than those with poor-quality photos. Hiring a professional real estate photographer and utilizing their DSLR camera can offer several advantages, including:

1. An average of 61% more views compared to listings without professional photography, across all price ranges.
2. A 47% higher asking price per square foot.
3. An increased likelihood of selling homes priced above $300,000.
4. A shorter time on the market, with an average of 10 fewer days.

Investing in professional real estate photography can significantly improve your chances of attracting potential buyers and selling your property quickly and for a higher price. Beycome offered professional package at $169.

3. Market like a boss:

In our today’s digital age, it’s essential to publish your home in as many places as possible. Ad discussed prior, and according to research, 99% of potential buyers search for homes on the internet. Therefore, you should take advantage of online platforms such as Zillow, Realtor.com, and Redfin, which have millions of visitors every month.

While online platforms like Zillow can be useful for promoting your property, Nico cautions that selling only through this site can be challenging. If your property is not listed on the Multiple Listing Service (MLS), it may not appear on 1000’s real estate websites.

To expand your potential customer base, you can be included in the MLS for a flat fee of $99 to $900. However, if a buyer has an agent, you’ll likely need to pay a 2% to 3% commission to their agent.

Inclusion in the MLS can be beneficial because it increases your property’s visibility to a broader audience, including real estate agents who may have clients looking for a property like yours. This can increase the chances of finding a buyer and potentially selling your home faster.

It’s also helpful to use traditional marketing methods such as flyers, posters, handouts, and other materials for listing and showings. Don’t forget to include links to your online listing on your social media sites, such as Facebook, to maximize your reach.

Finally, don’t underestimate the power of a yard sign. While it may seem old-fashioned, it’s an effective way to generate traffic to your property. Make sure to include a phone number and website link on the sign so that potential buyers can contact you and view the property online.

By using a combination of these methods, you can increase your property’s exposure and attract more potential buyers, ultimately increasing your chances of selling your home quickly and for the best possible price.

4. Be serious, Be Flexible and Responsive to Buyers

When it comes to listing and showing your home, it’s essential to remove any personal attachment or emotion from the process. While you may have specific features you love about your home, potential buyers may have different priorities, and focusing only on the things you like could turn them off.

To successfully sell your home, it’s crucial to shift your perspective from selling your home to selling a house. This means highlighting your property’s features and benefits that are attractive to potential buyers, even if they’re not necessarily what you would have emphasized.

It’s also important to be responsive to inquiries and provide thorough information about the property. In today’s fast-paced digital world, potential buyers may quickly move on to the next property if they don’t receive prompt responses to their questions or concerns. Be ready to put in the time to show the house, respond to emails and calls promptly, and ensure that you adequately market the property.

By putting in the effort and focusing on what potential buyers are looking for, you can increase the chances of selling your home quickly and for the best possible price.

5. The Price negotiation:

As a seller, it’s so important to be prepared to negotiate the price with your potential buyers. Buyers often expect some haggling over the price, and not being willing to negotiate could result in a lower selling price than what the buyer was actually willing to pay.

When an offer is made, you typically have two to three days to respond. If you have a real estate attorney, they can review the offer details and help you make an informed decision. It’s essential to consider all aspects of the offer, not just the price. Sometimes, the highest offer may not be the best one. For example, it may be better to take a lower cash offer than a higher bid that is contingent on financing.

By being open to negotiation and considering all aspects of the offer, you can increase the chances of reaching a deal that is mutually beneficial for you and the buyer.

6. Close by yourself or Hire a Real Estate Attorney:

When it comes to closing a real estate deal, it’s important to ensure that everything is done correctly to avoid any potential issues or disputes. While most of the legal and financial steps involved are typically handled by the title agent, it may still be a good idea to hire a real estate attorney to guide you through the transaction.

Some states, such as New York and Georgia, have laws requiring all sales to be overseen by a real estate attorney, even if the buyer and seller have agents. Even if your state doesn’t require it, a real estate attorney can be a trusted guide who can provide referrals for escrow agents and title companies, as well as answer any questions you may have about the selling process.

A real estate attorney can review the sale contract, ensure that all necessary documents are in order, and advise you on any potential legal issues that may arise. They can also help you understand any contingencies and negotiate the terms of the agreement.

Extra: Hiring a professional appraiser:

the cost is low, and the benefits are high! An appraiser will tell you the value of your home and what fixes need to be made before you hand over the title to a buyer. They also give documented proof of these items, which will help you out when you’re negotiating the selling price of your house.

Conclusion:

This list is not comprehensive and there may be other tasks that you need to handle as a For Sale By Owner (FSBO) or For Rent By Owner (FRBO). However, the tasks we’ve covered provide a good starting point and can give you an idea of how you can handle the process on your own.

It’s important to remember that selling or renting a property on your own can be challenging, but with proper research, preparation, and execution, it’s possible to successfully close the deal and save money on agent commissions.

beycome.com is not affiliated with Houzeo in any way.