DEAR FOR SALE BY OWNER:

It may seem tempting to try to sell your home without using a real estate professional.  You may think that not having to pay a commission will net you more money. 

"You can get rid of the REALTOR®, but you cannot get rid of the REALTOR®'s work" - is an old caution to those who intend to offer their homes For Sale by Owner (FSBO). 

Selling on your own is not an easy undertaking. It requires a significant amount of time on your part - to study the process, understand your obligations and do some of the complicated work that a REALTOR® does. 

In addition, selling on your own often requires extra help from outside professionals, e.g., accountants, attorneys, appraisers, inspectors, home repair professionals, insurers, etc. for some of the activities that require specific expertise.

When you use a REALTOR®, you have the advantage of information and knowledge and the loyalty of a professionally licensed individual committed to assisting you through what can often be a complicated and confusing procedure. 

FOR SALE BY OWNER (FSBO) PITFALLS:

LIMITED MARKETING EXPOSURE

A sign in the yard and an ad or two in the local newspaper will not generate the far reaching exposure you would experience listing your property with a REALTOR®.

As an independent, you are unable to list your property within the Multiple Listing Service (MLS®) of your area and immediately lose a large source of well-qualified contacts - other REALTOR®s!  Moreover, REALTOR®s have no incentive to show your home to the buyers they represent as they generally are not offered a commission on the transaction.

In addition, according to the National Association of REALTORS (NAR), studies show that 82% of real estate sales are the result of REALTOR® to REALTOR® contact as well as contacts through previous clients, referrals, friends and family.

THE BUSINESS OF ATTRACTING SERIOUS BUYERS

Often, people who visit For Sale By Owner properties fall into one of two distinct categories - the "Just Looking" and the "Bargain Hunters". 

Of the first group, some will be little more than interested passers-by and are a serious drain of your time. Others may eventually become serious buyers, but are now likely only testing the water before involving a REALTOR® of their own! 

Then there are the Bargain Hunters.  Realizing that you are saving on commissions, they may seek to negotiate a lower price as well as require additional concessions.  As a result, FSBO sellers tend to get lower offer proposals and many end up selling at a lower price than they had hoped for. 

BENEFITS OF USING A REALTOR® 

A REALTOR® is a licensed professional, bound to conduct their business by the National Association of Realtors Code of Ethics.   A REALTOR® knows all that needs to be done. They have the experience and resources to advertise and make all of the preparations that save you the time and effort of researching and doing it yourself. 

When you are selling your home, a REALTOR® who knows the local market can help you set a fair market price. You want to get the most for your home, but overpricing it can prolong the time it sits on the market, making it even more difficult to sell.

A REALTOR® is familiar with all the local and current real estate values, taxes, costs and services that could affect your sale. Your REALTOR® can suggest simple changes to your home to increase its desirability to prospective buyers. It helps to have someone both objective and knowledgeable when preparing a home to sell! 

A REALTOR® can help you show your home to potential buyers to its best advantage. They will advise prospects of all aspects and conditions of your home and can protect you from later objections. 

From a security perspective, when your property is marketed with a REALTOR®s help, you do not have to allow strangers into your home. REALTOR®s will generally pre-screen and accompany qualified prospects through your property.

REALTOR®s often net sellers more money because of the myriad other marketing actions they have at their disposal and the wide reach of the MLS® for qualified buyers willing to pay market value. With so many resources available, a REALTOR® may be able to help you come out with the same amount of dollars or more than you could command by selling your home yourself. 

OTHER FACTS:

According to the National Association of Realtors (NAR), up to 80-percent of FSBO sellers will end up choosing a real estate agent and listing their home on the MLS®, usually within 6-8 weeks. 

In addition, the NAR are quick to point out that over 80-percent of FSBO sellers indicate they would not sell on their own in the future. 

THE SALES PROCESS

In a real estate sale, a Purchase Agreement is just the beginning of negotiations. It sets the ground rules for a legally binding transaction, but this initial agreement is only the beginning of a process of appraisals, inspections, financing - a lot of possible pitfalls. 

Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.  

IN CLOSING:

When selling a home, there are a lot of details that can overwhelm A For Sale by Owner or be forgotten. Using a REALTOR® is the best way to be sure that you have someone on your side to get you the best deal and see that everyone is satisfied. 

A real estate transaction is one the biggest financial investments most people experience in their lifetime. Transactions can easily exceed hundreds of thousands of dollars.  If you had a substantial income tax or legal problem, would you attempt to deal with it without the help of a qualified CPA or attorney? Considering the small upside cost and the large downside risk, it may not be prudent to consider a deal in real estate without the professional assistance a REALTOR® would bring!

PARAMOUNT, the REAL ESTATE DIVISION will deliver exceptional service and support during the sales process of your home. When you work with PARAMOUNT, you will be represented by a REALTOR® group who will respect you and will delight in helping you meet your sales objectives. 

Contact Us Today and Put Us To Work For You!