FSBO In A Down Market

FSBO – or For Sale By Owner – is a method of home selling that has been embraced by a growing number of homeowners over the past decade. Thanks to internet access many people are finding it easy to list their homes themselves, thereby bypassing a real estate agent and saving thousands of dollars on commissions.

However, with the market very slow right now, is FSBO still a good idea? It can be, but you may need to rethink your strategy in today’s business and housing climate, one of the most challenging times to buy and sell property in recent memory.

Where there are challenges there are also some good opportunities, ways for you to sell your home without taking a beating. But, before you make a move, you’ll want to find out what you’re up against, to create a strategy that will work for you. Let’s explore some ways you can sell your home yourself and not take a beating in the process.

Assess Your Local Market — Whatever you do, dismiss the national news when it comes to selling your home. In fact, most state and regional news pundits will have their opinions about the market, but their ideas may not correspond will your local reality. Specifically, your neighborhood could be something buyers want, especially if it is convenient to everything. On the other hand, people who live in neighborhoods on the far side of town could find that their micro market has dried up, thanks to be poor location and a host of other factors.

Keep A Tab On The Trends — What have homes sold for over the past few months? How long did these homes stay on the market? Are prices trending upwards, downwards, or are they flat? You can find out this information by obtaining real estate market comparables (comps) for your area, something a real estate agent friend can provide for you. Just keep in mind that these reports offer only a decent barometer of the market, but they may be a little behind current trends. Make certain that the information you get is the most recent, but also take the time to drive around your neighborhood to see whose home is for sale and what prices are being asked.

Make A Plan – If you must sell your home within a certain period of time, how long will you keep it FSBO before hiring a real estate agent? If you get no bites within two weeks time, consider finding an aggressive agent and offering her full commission to sell your home. If you aren’t in a rush, tweak your campaign by making certain that your home is easily found online (e.g., through FSBO sites, Craigslist, and multiple listing sites). Also, is your personal lack of availability to show your home causing you to miss prospective buyers? Consider setting aside each day to show your home and give out your cell phone number so that people can reach you wherever you are.

Price It Right – Is your home priced right? Have you taken into consideration the recent shifts in the market? Some markets have seen prices drop by twenty percent or more in just a few months time, while other markets appear to be on the rebound. Be prepared to offer whatever sweeteners you need to entice buyers, perhaps pricing your home three percent lower than the going price, to split your real estate commission fee savings with your buyer. Offer to pay closing costs or kick in appliances for some other feature that the buyer wants, but maybe you didn’t make part of your original offer.

Cut Your Losses Or Cut The Sale – If you must sell now, consider taking a loss on your home if you cannot get a buyer that will pay the price that you want. Make certain that you can pay off the mortgage with the funds received and talk with a tax accountant to find out how you can make this loss work to your advantage taxwise.

These aren’t the best of the times when it comes to the housing market, but they aren’t the worst times either. Stay cool, be ready to make adjustments immediately, and keep your head on your shoulders when it comes time to consider offers. If you aren’t getting the price that you need and you don’t have to move, then wait the market out – things will certainly improve a year or two down the road.

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Adv. — If you’re in the market for a home, don’t fret about obtaining a mortgage. People with very good or excellent credit can still qualify for a mortgage and that qualification should be made before you shop for a home. Clearly, this is a buyer’s market which you can work to your advantage. Visit SayLending.com to find out more information about home financing and the steps you can take to find the best home loan for your needs.

Tags: FSBO, homebuy, homesell, multiple listing, real estate