Selling real estate, on your own. It can't be that hard right?You have the crude sign you made with the laundry marker, have it planted for the world to see. You own real estate you are going to sell yourself. Like performing an operation on your self missing most of the tools. (Passing For Sale By Owner the butter knife). How does the brain of a real estate buyer work? How do you guide the buyer or what are the steps needed to find lots of buyers? What does a real estate broker work full time morning, noon and night to attract, keep and close sales? Getting buyers thru the financing mine field or to help clean up their credit, find solutions to roadblocks keeping them from buying your home, any home, land, farm, waterfront cottage or business listing? A Realtor knows, is trained in the A-Z of a successful nealry pothole free road to your real estate closing. Keeping emotions from flaring over misunderstandings. Tough skinned, tender hearted and a little Dr Phil like understanding people and the pressure from the largest purchase/sale most of us ever makes. The stakes are high. Your kids are part of the equation to get to the new school, your job transfer has only so much time to hold the job open.
For starters, you the FSBO who have a full time job doing something completely different simply calculate a commission saved on the sale and that number is blinding the whole process of what actually happens behind the scenes in a real estate sale. What steps need to be taken and when, what dances need to be avoided that only a professional, full time many sales under their belt Realtor can guide around and recognize. Property exposure, legal paperwork on disclosure forms done correctly to avoid a law suit down the road or during the process. Qualifying buyers and knowing the ins and out of contingencies. Real estate sales are not your forte. No one is available 24/7 with the knowledge a buyer needs when he does not know what he is doing either in the buying/selling real estate transaction. You are both in the boat with no captiain, no flares, no radio, adrift in the real estate sea waiting for a pirate or two to come by and "help".
Besides no one outside your area knowing about your sale unless you the owner plan to try and duplicate the expensive, far reaching marketing presence a full time, successful Realtor already utilitizes 24/7, you also miss out on year's worth of happy repeat customers coming to a reputable, full time broker. Buyers already in his broker pipeline don't learn about your place.If you were a buyer for real estate, wouldn't you naturally contact a Realtor, read the ads, blogs, watch the videos and be getting email updates from a professional? A seller does not have that full service aspect and is banking on just one horse...his house horse that is at the race track all alone, in the dark, like a best kept secret. Property promotion-advertising and realistic pricing are the two major reasons real estate does or does not sell in ANY market. Your broker helps you arrive at what is the place really worth anyway, what is happening in the market with similiar homes like yours.
What do you tell a "lookey loo" that drops in just as you are sitting down for dinner on Sunday that demands a tour thru your place right now and asks what is the price of your real estate and would you cut the price by a third before even seeing it? This character is a total hoot, complete with tracking in diesel fuel, grease and whatever else was on his clod hopper boots. He makes you nervous as he seems more interested in your loot than the house as the tour unwinds. Oh yeah, and about the price. You don't really know what to ask so you seem vague. Just like his ability to buy if you saw the signs. You'll figure that part out later you tell him? Or tell him somewhere less than a million, or twice what the guy down the street has his "pie in the sky" property on the market for. You know, the guy who does not really want to sell but would if he could hit a home run at seven times what it is really worth. Sure used some stellar logic using his unrealistic pricing as your one and only benchmark? How qualified is the lookey loo, what questions do you ask, how to you get back to your dinner? Your policy is anyone in the yard gets a tour no matter what like it's Disneyland and your place is an amusement ride? Mr LL has always wanted to tour too. Maybe to come back for a heist. That big screen television made him almost bug out eye wise and his jaw was open so far flies thought it was an airport, flying in and out. This guy has no intention of buying, has a negative 300 credit score and is unemployed, in the middle of a divorce, has a criminal record and just killing time pending his next court date His girlfriend that he met twenty minutes ago says look honey, a for sale sign. Let's stop right now. Hang a left. She want to see the place. So you assume the position. You tell your wife to set another place at the table for your drop in guests? You don't know all the background and figure if they want the place and stopped, that's qualifying enough for you. Just rely on the old scientific axiom, where there is a will, there is a way thinking?
This is just the beginning of the FSBO real estate nightmare. Just because a caller wants the place, is not the qualifier. Is he pre-approved, which bank, what programs are out there to consider that are new, creative and fit his needs, situation? What if the buyer has a home to sell first? Wait forever for that to happen? Hope he wins the lottery during the tie up during prime time selling season in your area. Gold star for not even seeing the house boat heading into unchartered waters that prove you are way way over your head. And just sign any old contract you make up at the kitchen table with a zillion contingencies all open ended? All contracts are the same right? Someone at work's brother in law's cousin's step daughter's babysitter was a temp at a law firm for one afternoon and know how to put it together in world class form. Super. What's her number? Or you can can start spending more money on top of all the ads in the wrong places, etc with F Lee Bailey's law firm to delay and prepare what a broker would create or warn you to avoid this afternoon, not next week when Joe Esquire gets around to it and he is really a personal injury attorney or one that represents death row criminal appeals? Yes, he'll be an asset to this save a commission party you will throw if the home ever does sell. A real estate broker's job is all of these procedures and he is a guide to avoid pitfalls and quick sand. He helps you not get taken in by a sharp operator buyer that has way more experience on all the angles, the ways to work you six ways from Sunday. A broker has co- brokes arrangements with networking agencies, fresh, quality prospect lists of someone here in the area recently that would be a good candidate for your place that should know about the home. But that buyer and most prospects have no idea your home is new to the market. Because it is NOT really on the market in a full, all out marketing sense for the world to see. No real estate commisison to pay, but no sale either so putting your life on hold for a year. And the marketing expenses as you try your hand at being a full time, experienced broker when you don't even play one on tv. The kicker is eventually listing after all that time, money wasted, all those piple dream folks that paraded thru at crazy hours with every member of their family that wanted to see it too. Is that what you really want to do? Kinda sell it, kinda market it and wait? Real estate sales is not a hobby, or recreational high. It's a full time, not paid until you sell real life situation. There is a clock ticking during the listing, you get feedback, you see activity with people that can buy, that the timing is right and fits your move schedule. The commission is the carrot, the desert when the place sells. Not for trying to sell it. Selling it and this broker is by your side every step of the way, answering questions, asking you questions, tailor making the whole sale to make it a pleasant, timely situation. You have a life, we let you lead it is one of our mottos. And we wear an "R" the hardest working alphabet letter of the 26.
Other professionals here at Active Rain will add in the comment section below other aspects of the many many elements of what goes into a sale that you will become aware of as time rolls by as your place molds on the market with buyer neglect in just your neighborhood of passer bys on the sign you did not even post your number, don't even own an answering machine and a home that maybe you are not at very much. The FSBO tease I call it. But for now are you still just seeing no commission owed, feeling whoopie? You get what you don't pay for and a lower price in the unlikely event the place does happen to sell which the odds are against for top dollar in a quick turn around so you can get on with your life. Who's making the real estate video, blogging about the place, salt and peppering the social media sites? Who has a stable full of past happy clients who repeat buy and have family they recommend to the full time broker? Only a Realtor.