Fort Meade - USNA - Andrews AFB: Debunking Five FSBO Myths

Home Sellers, This Is For You!

In case you've been living on another planet or just never thought about it, "FSBO" is a common acronym for "For Sale by Owner".  The term is most often used in regards to selling real estate without professional help (or with minimal professional involvement by a so-called "discount broker").

Here are a few common myths you may have heard:

1.  I WILL SAVE A TON OF MONEY (I want to keep those commission dollars in my own pocket):

It is a commonly-held belief that home owners who sell FSBO save the real estate commission.  The truth is that any FSBO buyer has every intention of putting that commission in his/her own pocket - not increasing the sellers' profit!  Selling FSBO could easily cost a seller more than that full-service commission they're avoiding.

• Just ask Mel and Ty Eanes, whose Bowie townhome I sold for thousands over full price - in a buyer's market like this; in three hours.
• Or ask Dan Stachurski, whose Severna Park home sold separately from the side yard for a net gain of many thousands of dollars. (This wasn't the only time I did that!)
• Ask Jacque Boock, whose custom modifications made her Crofton townhome very difficult to sell.  Not only did her house sell to a buyer who LOVES the property, she walked away with several thousand dollars more than expected.
• My neighbors, Don and Judy Turnball, bought from a FSBO at the market price for their home minus 6% AND the seller paid 6% closing.  This FSBO certainly didn't save a ton of money - it cost him more than working with an agent!

 

2.  I CAN FIND MY OWN BUYER (It only cost $295 to list my home on MLS with Discount Realty):

How hard can it be, you ask.  You believe anyone can find a buyer or a home on the Internet.  Yes, possibly true - assuming you know where to look.  However, I can't tell you how many buyers I've introduced to new neighborhoods they didn't know existed.  It's my job to know the area.  That's why I've been exploring the side streets and hidden neighborhoods of Anne Arundel County for 35 years!

When it comes to finding buyers... are you going to depend on luck?  Maybe those folks relocating to a new job at Northrop Grumman from Colorado will just happen to drive down your street and see your sale sign.  Or maybe they instinctively know that your neighborhood suits their needs, and that's exactly what they're looking for online.  Do you really want to chance it?

Most of today's buyers are busy people, relying upon a real estate agent to help them find and buy a home while they cope with countless responsibilities at home and work.

(Oh, by the way, finding a buyer is the easy part - the hard part is keeping the transaction together ‘til settlement!)

 

3.  I CAN NEGOTIATE A SALE (I'll hold firm with my price and terms):

A FSBO has no professional representation unless they hire a real estate attorney - who usually gets involved only after initial negotiations are complete. 

I say "initial" because a contract is only Round One in this transaction.  Still to come are the home inspection, appraisal, title examination and countless other things that trigger re-negotiation. 

Ahhhhh.  Let the games begin, with no real estate agent to help keep the sale on track.  Just remember...

You have the right to be represented by a REALTOR.  Anything you say can and will be used against you in negotiations. 

4.  I KNOW MY OWN HOUSE BETTER THAN ANY AGENT (I can do a better job of selling it):

If only it were that easy!  Knowing your home may be the least important qualification in selling real estate.

Knowing what the BUYER wants is the key factor!

An experienced real estate agent usually spends a lot of time listening to the buyer before they ever go out to look at homes.  By the time they do get into the car the first time, an agent knows the buyers' wants, needs and financial qualifications.  He selects homes accordingly, and will point out things about each home that match the buyer's wish list.

I could write several blog posts about sellers who cost themselves a sale when they pointed out something they considered an asset.  Instead, it was the pivotal moment when a buyer said "no" to that house.  For example, a seller may point out the "big yard" - and that could be emphasizing the one drawback the buyer sees in the property; or a seller may proudly show off the finished basement, which doesn't conform to the buyer's taste at all. 

Showing any home to prospective buyers is best left in the hands of an experienced real estate professional who truly "gets" the buyer's criteria and will point out features which are most likely to produce a "yes" from any possible buyer for your home.

 

In this day and age, when you can search online for an agent and conduct a virtual interview by reviewing their websites and blogs, it's never been easier to find an agent you can trust!

If you don't know where to start, let me suggest ActiveRain.  It doesn't matter where in the country you live, chances are there's an ActiveRain member in your area that you can get to know without ever leaving the comfort of your favorite chair. 

Want to find out what local agents are saying to prospective home buyers?  Checkout Localism, ActiveRain's partner site created for folks just like you who are trying to find a real estate agent in Anywhere, USA.

You might be surprised to find out how experienced, knowledgeable and hard-working most REALTORS really are.   I'm sure you've heard the saying "penny-wise and pound foolish" - Nowhere is that more true than selling real estate, especially in a market like this.  There truly is no substitute for experience or expertise, and saving the commission could easily cost you more money AND more heartache.  Go ahead, visit ActiveRain and check out the agents in your area.

P.S. - Remember, there is more to selling a home than finding a buyer (or a buyer finding you).  You want a qualified buyer who is ready, willing and able to purchase your home at a fair price... quickly... and with minimum hassle or negative legal repercussions.  Just listing your property on the mls will not do that for you.  An experienced full-time REALTOR is your best bet!

This is the first in a series of posts written especially for home sellers, beginning April 1 at http://www.focusoncrofton.com/.  SUBSCRIBE today, so you don't miss any of them.

FIRST INSTALLMENT:  Starting a Series of Blogs for Sellers 

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Thinking of selling your home in Anne Arundel or Prince George's County?  Check out some of the tools I provide for buyers because they could help attract a buyer for YOUR home:

Buyers, Find a Home and learn about Real Estate Market Conditions in Maryland; Check out Today's Rates, use the free Mortgage Calculator, and watch a brief video about the Power of RE/MAX.  These consumer-friendly real estate tools are provided by Margaret Woda for you to use at your own pace. 

When you're ready to go from "just browsing" to "let's get serious", contact Margaret online or call her at RE/MAX Vision in Crofton Maryland. 410-451-1900