For Sale by Owner (FSBO)
Finding a Qualified Buyer is Difficult...
There is no reason for a buyer not to work with a Realtor. There is no fee to the buyer, and by using the MLS computer system, we can show all homes that fit specific parameters. Remember that not all Realtors advertise every listing, so as a buyer, just looking through the newspaper you might be missing the home that you're looking for. Setting up a viewing appointment is simplified by MLS lockbox access, and is without the added stress of the Seller present. We also spend a great deal of time qualifying our Buyers, so as not to waste their time or the sellers.
Why Buyers Shop For Sale by Owners (FSBO)
- Shopping for a deal. FSBO buyers offer less. They generally feel that they, not the seller, should "save" the commission, so they take that percentage off their offer.
- Usually because they fail to qualify, or have not yet been in to see what they actually can afford. A seller does not have the ability to check a buyer’s credentials. Often several weeks into the transaction the buyer is found to be ineligible, and the home goes back on the market.
- Bargain Hunters. Many FSBO buyers are preying on the inexperience of the seller, in matters of pricing, negotiating, and contracts.
Direct Contact With the Buyer Can Weaken Your Position.
Buyers often take advantage of the sellers' need to move, their financial situation, their easy going personality, or their inexperience in negotiating. As a third party, and a representative of the seller, a Designated Seller’s Agent is able to keep personalities out of the negotiation.
Are You Familiar With Contracts?
You can sell the cow but give away the farm by not being fully aware of all the ins and outs of contracts and the closing process. Which inspections need to be completed before settlement? Who pays for them? Does my lawyer specialize in real estate transactions? An experienced Realtor can give advice on finding professional services.
Are You Familiar With Financing?
Will you home qualify for VA or FHA financing? If your loan is assumable, what are the conditions? Will you be released from financial obligation if the buyers default? Are you aware of the closing costs under various programs? A Designated Seller’s Agent representing you will be able to give you a very close estimate of your net proceeds at the time the offer is presented.
The Danger of Over- or Under-Pricing
Without access to sales statistics and the physical comparisons of the different properties, you run the risk of either not asking enough for your property or over-pricing it. An over-priced listing can fool you. It can be shown three times a day for months, with no offers. Then it becomes "shopworn", and even with a price reduction, loses the interest of both buyers and agents. This results in you finally being forced to accept far less than you anticipated, in addition to the wasted time, advertising, and inconvenience. Our trained professionals are highly qualified to do an evaluation and price recommendation for your home.
You Need the Powerful Advantage of the Realtor Multiple Listing Service (MLS)
Remember, most qualified buyers are working with agents. The multiple listing service "advertises" your property to all Delaware Realtors. Ads don’t sell houses - Realtors do!
Too frequently FSBO's are exposed to unscrupulous persons because there is no pre-qualification process. There have been instances of burglaries involving these properties, where the home has been "cased" by someone posing as a buyer. Qualified buyers working with Realtors are basically registered, having given us all their personal and financial information in the form of a mortgage application. Since most Realtors leave cards at every showing, you will have a record of every person viewing your home. Our electronic lockbox also records the name and company of everyone who accesses it.
Trying to Save the Commission
Wanting to save money is understandable. However, the drawbacks can be costly. Studies show that 90% of all FSBOs eventually list their properties; between pricing the home correctly, getting the maximum exposure, and bringing in only qualified buyers, that 90% actually nets more than if they had sold it themselves.