By Andy Carter Jan 2018
You’re reading this because you either are in the process of selling your home on your own or are seriously thinking about it. Your home is either your largest asset or close to it. No matter what, it is bound to be a substantial part of your economic portfolio and because of such, your next move needs to be calculated and purposeful. So, with this assumption please take the time to consider what I have to say concerning going the route of FSBO vs. the route of using a real estate agent. It isn’t short and it is filled with ideas that are not the most commonly communicated. Everything I read, both pro-FSBO and anti-FSBO are these short one-page platitudes. They have good points and I’ve used some of them here, but overall, we need to treat this like it is the most valuable asset and make sure an educated decision is reached. I believe you owe it to yourself to read this four-part series on why you should use a professional to sell your home. If after reading this, you still believe you are the best person to protect your greatest asset then all the power to you!
The Move to Independence!
Wow, I get it. The market is hot, some listings sell before they are active, some within days of being live on the MLS. So why not do-it yourself? I am a do-it-yourselfer. Really, I am. I even fixed my vacuum the other day by going on YouTube and going through the process step-by-step. It worked for a little while, but we’re now in the market for a new vacuum. I’m not a mechanic, but I have fixed basic issues on my car. I’ve done a lot of investing, but then again, I do have an MBA and I did learn from a master investor, my grandfather. I really did make money in the market. I am not the most knowledgeable and best investor with bonds, so I find I need some expert advice to ensure proper diversification. There is a lot we can do by ourselves these days. However, some things are best left in the hands of the experts. In part 2 of this series, I will get into why I think going the FSBO route is NOT usually the best option.
BUT first, why I would go “For Sale by Owner”:
MONEY! It may start and end with this reason. Save Money! Assume a 6% commission on a $400,000 home. That’s $24,000. That’s a lot of money that could easily go into my retirement account or the Andy Carter Benevolence Fund! Even if I pay a Buyer Agent at 3%, we’re still talking about my retirement fund adding $12,000. That’s not chump change! Basically figure $6,000 to $3,000 for every $100,000 in value of your home and that’s what I’m saving.
Time. I’m not in a hurry to sell and I have all the time in the world on my hands, heck I binge watch Netflix every weekend and my social calendar is empty!!! I also enjoy that my time is flexible, so I can meet new people and invite them into my home anytime they want. So, time is not an issue! (Yes, a little tongue in cheek.) (Even the FSBO website references time and having plenty of it makes you a good candidate for a sale by FSBO and if you are pressured on time, then you may want to look at a real estate agent.) But if you have all the time in the world. Why not??
Sense of Pride. I can self-medicate myself on a variety of physical ailments that impact my body. I even do a lot of self-evaluation on my legal needs and my financial investing. I’m a pretty savvy person in navigating the ways of the world and the complexities of our society. So, this wouldn’t be any different. If in those other things I can do the basics, why can’t I do the basics of selling my own home? I mean title does a lot of work, the lender does a lot of work for my potential buyer, so if I get all the info from one of those web-sites on selling your home; I think I could do this! There is probably a “Sell Your Home for Dummies” (I just checked, there is!). I’m fool proof!
Bad experience with a real estate agent. I get it, not everyone in our field makes us proud! Actually, my theory is this. In any field it’s the 80/20 rule, although I alter it to be the 20 + 60/20 rule. My theory is, 20% of the people do a great job, put their heart into it, know their craft, and care for their client. This 20% also sell 80% of the homes out there. Then there are 20% that just stink. They don’t know what they’re doing, they don't really care… The other 60%, well they fall in-between these extremes, probably even depends on the day and how motivated they are; they will get the job done, but you may walk away going, “I will not want to use them again!” (Also, beware of the agents that can sell themselves and appear everywhere, but they are a mile wide and an inch deep!)
I’m sure you have more reasons, I can’t think of anymore, but it really does begin and end with number one, the ‘green stuff’.
Part 2 teaser
Why I believe it isn’t a good idea to go FSBO...
My reasons are not in order, and I will preface this with the fact that I’m biased. I’m a Realtor, so I obviously have a vested interest in this decision you or any Seller of a home is going to make. I also believe that since I’m in the business and interact with people buying and selling homes on a full-time basis, I have something to say of value. But here are my reasons, so weigh them for yourself....
...To be continued.
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