Considering For-Sale-By-Owner?

Are You a Do-It-Yourself Seller? Are you considering selling your house For-Sale-By-Owner (FSBO)? Advances in web technology and competition from FSBO companies have challenged the traditional real estate brokerage model. Nevertheless, in 2006, Nationally 86% of all FSBOs ultimately listed their property with an agent (NAR Survey of Buyers and Sellers).And locally 91% ultimately listed their property with an agent. (GNAR Survey of Buyers and Sellers).

Are you the right person to sell your own house? To determine whether this choice is a viable option for you, consider the following questions. Addressing these decisions prior to putting your property on the market will assist you in marketing more effectively. This process also puts you in control rather than reacting haphazardly to events as they occur. If you feel comfortable handling the decisions listed below, you may be in the 9% of local FSBOs who successfully sell their property without an agent.

Twenty Nine Key Questions

Showings
1. How many hours per day will you be available to field telephone inquiries and schedule appointments?
2. Who will handle showings?
3. How will you secure your personal safety as well as the safety of your belongings during showings?
4. When buyers view your property, what questions will you ask to determine whether they are interested in purchasing?
5. What will you do with your pets and/or children when buyers are viewign your property?
6. What is your strategy to make your home appear as attractive as possible to potential buyers?
7. Are you aware of the federal, state, and local disclosures you are required to make to your buyer? If not, how will you determine what is requried by law?
Traditional Marketing
1. What print publications will you advertise in and what is the weekly cost?
2. Who will write your ads and what should they say?
3. What is your strategy for determining whether your advertising is working?
4. How will you attract buyers to your open houses and persuade them to give you valid contact information?
Marketing To The Brokerage Community
1. Eighty-four percent of homes sell through real estate agents. What is your marketing plan to reach the real estate brokerage community?
2. If an agent brings you a buyer, will you pay the agent a commission, and if so, how much?
Web Marketing
1. Which websites will you use to market your property?
2. How will you determine whether the websites you select receive any traffic?
3. What is your plan for having web visitors find you using Google, MSN, and Yahoo?
4. Will you post multiple pictures and a virtual tour to the websites where you elect to market? If so, what is the cost and which vendors will you use?
5. What is your plan to reach relocatin buyers?
6. What is your plan for marketing to buyers who speak languages other than English?
Risk Management
1. What is your strategy for avoiding litigation when buyers ask you about square footage, lot size, or closing costs?
Negotiation
1. What is your strategy for negotiation with bargain hunters?
2. When a buyer objects to a feature in your home, such as the yard or dining room being too small, how will you respond to the objection?
3. How will you determine whether your bueyrs are qualified to purchase your property?
4. If the buyers make an offer contingent on the sale of their property, will you accept the offer? If so, how will you protect yourself if the buyers are unable to sell their property?
5. Are you willing to entertain back-up offers and if so, how will you protect yourself from selling your house twice?
6. Will you use a liquidated damages provision?
Closing
1. How will you handle the buyers' demands for repairs?
2. What will you do if the buyer decides to back out of the transaction or tries to renegotiate the price based upon the inspection?
3. What is your strategy if the buyer fails to qualify for the loan?
If you are comfortable addressing the isses above, you are an excellent candidate to sell your house yourself. If the FSBO route is not for you, however, then the question you must ask yourself is whether you will select a full service or limited service brokerage to assist you with your sale.

Reference: Who's the Best person to sell my House? by Bernice Ross, PhD