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Additional Tips to Save Commission and Sell Your Home by Owner as a FSBO

Monday, March 9, 2020   /   by Karey Kendrick

Additional Tips to Save Commission and Sell Your Home by Owner as a FSBO

As you know, we created a FREE report highlighting 10 insider tips to selling your home by yourself which will help you sell for the best price in the shortest amount of time.  

This report highlights tips real estate agents don't want you to know. On today’s video, I am going to cover the remaining 5 out of 10 Tips. 

If you've tried to sell your home yourself, you know that the minute you put the "For Sale by Owner" sign up, the phone will start to ring off the hook. Unfortunately, most calls aren't from prospective buyers, but rather from every real estate agent in town who will start to hound you for your listing. 

 

Like other "For Sale by Owners", you'll be subjected to a hundred sales pitches from agents who will tell you how great they are and how you can't possibly sell your home by yourself. After all, without the proper information, selling a home isn't easy.  

Perhaps you've had your home on the market for several months with no offers from qualified buyers. This can be a very frustrating time, and many homeowners have given up their dreams of selling their homes themselves.  

But don't give up until you've listened to these videos and ordered our free report entitled "Sell Your Own Home" which has been prepared especially for homesellers like you. You'll find that selling your home by yourself is entirely possible once you understand the process. 

Today, I am going to be highlighting 5 Tips: 

  1. 1. Pre-Qualify Your Prospects... 
  1. 2. Negotiate Effectively & Knowledgeably... 
  1. 3. Know Your Buyer. 
  1. 4. Don’t Move Out Before You Sell.. 
  1. 5. Know Why You're Selling and Keep it to  Yourself... 

 

If you ask anyone who has ever tried to  sell their home themselves they'll tell  you that from the moment the "For  Sale by Owner" sign goes up, the phone  begins to ring. Unfortunately, many of  those calls will not be from prospective  buyers, but rather from real estate agents  looking to obtain your listing. Obviously  the idea of not having to pay a commission  to a real estate agent is attractive to  any homeseller. But because of all the  issues involved in the process, selling a  home on one's own can be challenging as  many homesellers will attest to.   
 

The key is to be properly prepared. If  you are not, your home could remain on  the market longer than you expect  because you are not attracting and getting  offers from qualified buyers. This can be  a point where many homeowners become  frustrated and consider giving up their  dream of selling their home themselves.  However, there are sellers who accomplish  selling their own homes, very well.  You can be one of them.   

These tips have been especially  prepared to assist homesellers, such as  yourself, understand the elements  involved so you, on your own, can sell  your home quickly and for the most  amount of profit. To help you prepare,  here are the 5 inside tips that you should be  aware of before you make the decision as  to whether or not this is the right  approach for you.  (And don’t forget to tune in next week for Part 2 of our How to Sell Your Home By Yourself Series. 

Pre-Qualify Your Prospects...
Don’t  waste your time entertaining buyers who could  never afford your home. Research their financial  steadiness with respect to job security,  salary, debts, liabilities and credit standing.  

Negotiate Effectively & Knowledgeably... 
There will be many details to resolve before a 
sale  can be considered final: price, terms, inspections,  possession date, buyer concerns and objections.  Make sure you fully understand the contract you  have drawn up so you can in turn explain details  and ramifications to the buyer and make any  amendments to the sale that are necessary. The  contract you use should be thoroughly examined by  your real estate attorney. Some real estate brokers  may be willing to help you do this. While this is  going on, manage the buyer’s interest in your home  so that it doesn’t wane during negotiations.   


Know Your Buyer...
Your objective 
during  negotiations is to control the pace and set the duration.  Try to determine what your buyer’s  motivation is. Does he or she need to move  quickly? Do they have enough money to pay your  asking price? Knowing this information will give  you the advantage in the negotiation because you  will know up front, what you will need to do in  order to get what you want.   


Don’t Move Out Before You Sell...
Studies  have shown that it is more difficult to sell a home  that is vacant. It looks forlorn, forgotten, simply  not appealing. It could even cost you money. If  you move, you’re also telling buyers that you have  a new home and are motivated to sell fast which  can, of course, give them an advantage at the negotiating  table.    

 
Know Why You're Selling and Keep it to  Yourself...
The flip side of “understanding  your buyer” is to “understand yourself”. 
Your  reasons for selling will affect everything from your  list price to how much time and money you will  invest in getting your home ready for sale. Your  motivation will help you determine what is more  important to you: the money you walk away with,  the length of time your property is on the market,  or both. Different goals will dictate different  strategies. As someone who wants to sell without a  real estate agent in an effort to save the commission, it is likely that money is one of your  primary considerations, (see inset box below).  Whatever your reasons, however, it is very  important to keep them to yourself so as not to  place yourself at a disadvantage at the negotiation  table. When asked, simply say your housing needs  have changed.    

 

How to Assess Your Net Gain when Selling as a By Owner

To analyze whether or not you will end  up ahead by choosing to sell on your  own, consider the fact that most buyers  do use a real estate agent because it  doesn’t cost them anything for this service  (i.e. the seller pays the agent’s fee).  Be cautious as buyers, investors and  speculators who seek out For Sale by  Owners are typically those in search of a  bargain.

The low-ball offers from 
these  types of buyers will often net you much  lower in the long run. What you will have  to judge for yourself is the following:   

  1. Be as prepared as possible with your  marketing, negotiations, evaluations,  showings and all legalities.   
  2. Consider what it will cost you to effectively  market your home and assemble  all necessary materials from the “for  sale” sign to any contracts?   
  3. What price will a buyer offer you as a  For Sale by Owner minus the costs  identified in point 2 above. Is this net  price higher than the price an experienced  agent could net for you minus  his/her commission?   

Thanks for Watching. If you enjoyed this video and you feel like it was valuable in educating you on things you can do to help with the home selling process, subscribe to our channel, like this video and share this video with your friends.

Check out Next 
Weeks Video on Mistakes to Avoid When Trading up to a Larger Home!  Thanks again for watching.   


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