All Entries in the "FSBO" Category

Is FSBO the Way to Go?

Home sellers were living large in the peak of the real estate market.  In Jupiter, Florida many home buyers were sleeping overnight on local builders’ doorsteps for a chance to purchase a home.  Since that time, the market has taken a dive.  Short sales are more common and foreclosures have not only permeated the market, but have contributed to the dramatic decrease in home prices.

Now many home sellers wonder if selling their home themselves is a more profitable option.  I always tell people who ask to take a look at the facts and understand the amount of work involved to sell your home yourself.

Most Difficult Tasks for FSBO Sellers:

FSBO Methods Used to Market Home:

Typical Home Sold:

The most difficult task for FSBO Sellers is understanding the paperwork followed by getting the right price/fixing up home for sale.  Your first option would be to hire a real estate attorney who can interpret documents and advise you on the rules and regulations for selling your home yourself.  After the cost, consider the availability of your attorney.  Questions arise at unexpected times and will you be able to get answers from your attorney quickly?  The second option is hiring a REALTOR® (see my article Why Hire a REALTOR®).  A REALTOR® is trained to understand paperwork, pricing your home and helping you to prepare your home for sale.

The largest and most time consuming part of the job is marketing your home.  How will you get the news out that your home is for sale?   The most used for FSBO’s is the yard sign.  No question, it is a great marketing tool for us REALTORS®.  However, using that alone may not get your home sold.  Most REALTORS® use all of the marketing methods listed above and more including the MLS (Multiple Listing Service) a primary selling tool in real estate.  The MLS alone markets to over 14,000 other REALTORS® in our area.  It is a powerful
tool.

The most powerful statistic is the price of the typical home sold.  In the above scenario, an agent assisted home sold for $59,800 more.  In our area, the standard REALTORS® commission rate is 6%.  Subtract that from your sale price ($14,820).  You end up with $44,980 more than if you had sold the home yourself.

Source:  2007 National Association of REALTORS® Profile of Home Buyers and Sellers

Joe Quirk, Broker for Cobblestone Realty in Jupiter, Florida.  He is also a real estate investor and has investment property throughout Palm Beach County. Contact Joe at (561) 427-9326, by e-mail, or visit our website www.CobblestoneFL.com to learn more.