Make Every Dollar Count
No matter how bad the real estate market seems to be these days, home sales do happen because people will always need a place to live. More than 5.1 million homes were sold in 2009, which represented a 4.9 percent increase from 2008 levels and the first annual increase since 2005. But as homes have lost value the past couple years, today’s home sellers are finding out that every dollar counts when it comes to keeping as much of their home’s sales price as possible.
To save money on commission, many sellers are opting to sell their home themselves instead of hiring a real estate agent. There’s a growing amount of evidence suggesting that sellers would be wise to considering selling the home “for sale by owner” (FSBO). Studies from Northwestern and Stanford Universities have found that FSBO sellers are as effective as agents in maximizing a home’s sales price. After commissions are factored, the studies reported, these sellers are able to retain more of their home’s equity than those who sold with an agent. A report from the real estate industry’s own trade group, the National Association of Realtors, found that FSBO sellers sold their home quicker and for closer to asking price when compared to homes represented by agents.
Furthermore, Consumer Reports magazine found that FSBO sellers are more likely to get their asking price while agents deliver, on average, a sales price that is $5,000 less than the original asking price.”In a market where prices have fallen, people should really consider selling their home themselves to keep more of their home’s value,” says Greg Healy of ForSaleByOwner.com -- the nation’s leading for sale by owner website. “Selling a home through an agent means giving up 5 to 7 percent of the sales price in the form of real estate commission fees. Selling your home without an agent offers an immediate savings of at least that much.”
Since it is a buyer’s market where there are plenty of homes available, it’s important to be aggressive and make your home stand out. Healy offers some tips to help you successfully sell a home as a FSBO seller.
Market the Home Online
Considering that more than 90% of buyers use the internet to search for a home, it is critical to listing a home on the right website. ForSaleByOwner.com has more than twice the amount of visits as the next closet competitor and syndicates all of its listings on the real estate sections of Yahoo, Google and USA Today, several websites also offer a service that lists a customer’s home on Realtor.com to give it even more exposure.
Price it Right
By using the Internet and doing a little bit of homework, any seller can compare their home with recently sold homes and other homes currently on the market. This research enables a seller to gauge the value of their home and, combined with an online appraisal available through several for sale by owner websites, can accurately arrive at a listing price. Remember, the market dictates the price of a home and not what the seller thinks it should be worth.
Make a Great First Impression
Today’s buyers are attracted to open, clean, spacious and updated homes. Remove personalized items such as family photos and clear all clutter from countertops, closets, tables and floors. Simple improvements like fixing broken tiles, cleaning carpets and repainting walls in neutral colors can greatly enhance the appeal of your house. If you’re having an open house, remove all evidence of pets (dog kennels, cat boxes, hamster cages) and make sure the house smells great by baking a batch of cookies or lighting a scented candle. If ever there was a time for a thorough top to bottom cleaning, this is it!
Get a Real Estate Attorney
It is a myth that real estate agents handle the legal paperwork associated with a home sale. It is wise to hire an experienced real estate attorney to help a seller evaluate complicated offers, act as an escrow agent, review contracts and handle the home’s closing process. Having a real estate lawyer will ensure that a legal expert is looking out for the seller’s best interest. A lawyer will only cost a few hundred dollars and, as Healy advises, is money well spent.
