By Angie Mager
1. Not allowing enough time to sell privately. If you sign with an agent, they'll want at least 6 months - shouldn't you give yourself that much time? Impatient FSBO sellers are one of real estate agents' greatest sources of income.
2. Starting out with an over-priced home. "We can always come down in price" is the most dangerous and expensive strategy a home seller can use. Price it right to begin with. Over-priced homes do not sell - buyers are smart. If you've done your homework, had a Comparative Market Analysis done (we can do one for you), and still don't feel confident that you're priced right, hire an appraisal company for about $300.
3. Assuming they can sell by owner with little or no expense. A cheap sign sends the wrong message to a buyer. Classified ads are expensive usually not effective in the Indianapolis market. Put all the tools to work for you. Our comprehensive packages include all the tools you'll need to market and close your sale. They start at $595. Maximize exposure to as many buyers as possible. You make your money selling by owner by saving commissions NOT minimizing your exposure.
4. Relying only on local "Drive-by" traffic. Even if you live on a busy street, what about the family that lives across town and never drives down your street? Or how about the family that was transferred here and is looking on-line?
5. Thinking agents can sell faster than FSBOs. Regardless of what they say, agents cannot sell your home any faster especially in a buyer's market when agent-listed home prices are often padded to cover commissions.
6. Making things confusing or difficult for potential buyers. Get educated about the sales process and the documents needed. If you don't have the answers, the buyers may not either and they'll find a seller or realtor who can answer their questions and guide them professionally. Prepare your disclosures in advance and decide on a title company. Have a home inspector, appraiser and lender that you can recommend. |
If you belong to a homeowner's association, make sure you obtain the bylaws for the buyer. We've made it easy for you to learn about selling a home through our monthly seminar. A mortgage professional, real estate lawyer, title company, appraiser and For Sale By Owner expert will be there to lead the seminar and answer your questions.
7. Thinking that the buyer, lender and the title company will do all the paperwork. You'll have to make sure that the buyers meet their deadlines, arrange for timely inspections, obtain homeowner's insurance, etc. You'll want to stay in touch with the title company also. Stay informed and make sure you document everything in writing. You'll be rewarded with a smooth, problem-free closing.
8. Failing to know and understand disclosure laws. Hire a lawyer, come to our seminar or find a way to learn about disclosure laws. Did you know that you have to disclose the possibility of lead paint if your house was built before 1978 and that you also have to give your buyers a brochure? It's the law!
9. Assuming that a home is sold when it is merely under contract. There are many reasons for home sales to fall through... the buyer couldn't get the loan, or the buyer and seller couldn't come to an agreement on repairs needed because of an inspection are common reasons. When you get a signed contract, don't stop marketing your property. When people call, don't tell them your home has sold. Tell them that you have an offer pending and you'd be glad to show the home if they are still interested and would be glad to take back-up offers. At the very least, take their name and phone number and tell them you will let them know if the home becomes available.
10. Not taking any earnest money or agreeing to anything verbally. It is typical to take a deposit of 1% of your home's price for earnest money. This check should be made out to the title company that you have selected in advance. This is certainly negotiable, however you'll want to take at least $500 - $1,000. Without a substantial amount at stake, your buyer may feel like he or she can walk away from the contract for no good reason.
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