An article appeared in a local Massachusetts real estate magazine called “Could You, Should You Sell Your Own Home?” written by Edward Moore, then vice president of the Realtor Association of the Pioneer Valley in western Massachusetts. The publication of such an article points to the growing pressure being felt by real estate agents, fearing the increasing audacity of homeowners who choose to sell “on their own”. The following information is provided as a counterpoint to the questions Mr. Moore posed in his article, which posed the question, “Could you sell your house yourself?”
1) Do you have enough knowledge to appraise your own home? Mr. Moore and I are somewhat in agreement on this point. The #1 mistake FSBOs make when selling is mispricing. It’s hard to remove the emotional attachment, do the legwork to find comparables (although there are many resources available for this information), and price your homes without help. That is why we recommend the use of a professional appraiser and not a market analysis agent. Remember, a lender will not lend money based on this method and will require a professional appraisal by a licensed appraiser.
2) Do you have the skills and resources to effectively advertise and market your home and are you prepared to pay advertising costs and be available to take calls? The skills needed to effectively advertise and market a home may not be second nature to many, but this is where the support of a local for-sale-by-owner service can come in handy. Advertisers are taught to use a mix of profitable local, regional, and out-of-area marketing to generate broad exposure. Can you answer the phone, have a short chat with an interested party, and make an appointment? We think so.
3) Do you know what financing is available? The home seller does not need to know the intricacies of all the loan programs out there. They may want to put together a list of reputable local lenders for the buyer to call and have a financing sheet available, as we recommend to our advertisers.
4) Do you have a network of buyers…can you filter out unqualified prospects…are you comfortable waving to strangers who pass by at 9:00 pm because they saw your yard sign? Agents hold this –buyer network– like candy to the FSBOs. Ask them to bring the buyer and suddenly they disappear. Most people looking for property these days look with more than one agent and also on their own. Will you greet a potential buyer at 9:00 p.m.? I doubt it, more than you would want an agent to come to your house with minimal notice at any time of the day.
5) Are you available 7 days a week to show your home? (Buyers will expect you to be available at their convenience, not yours.) Perhaps buyers expect agents to be available at the drop of a hat, but we’ve never heard of one of our advertisers being uncomfortable scheduling buyer visits. In fact, sellers have repeatedly told us that it was much less stressful to schedule viewings around their busy lives, while cooperating with the potential buyer. Anyone who is really serious about looking at a home will usually do whatever they can to please the seller. We give sellers tips on how to effectively schedule private tours and open houses.
Conversely, we’ve heard from sellers who were much more annoyed by agents (who were in the area) bringing in buyers who were “feeling the market” and weren’t really qualified or interested in seeing their home.
6) Do you have good negotiation skills? Are you comfortable haggling face to face over price? Will you be willing to disclose the known defects in our home and do you know what the law requires you to disclose? A fairly priced home shouldn’t require “haggling,” and both buyer and seller should anticipate some back and forth during negotiations. If in doubt, ask your twelve-year-old how to negotiate. We deal with people every day: with our children, bosses, and significant others. Many times, the ability to sit quietly (buyer and seller) at the kitchen table makes for better communication than the “go it alone” method commonly used by agents – the last thing they want is to have the buyer and seller together . Getting together is actually a huge time saver, as questions and concerns can be answered quickly and easily. The seller’s responsibility to disclose known defects is no different than selling “by owner” or using an agent. A seller should seek the advice of his attorney regarding disclosure, and the buyer should request that a professional home inspection be performed as part of the sale.
7) Can you write a binding contract? This is where scare tactics get really interesting. Our advice? Based on the many attorneys who have appeared at our home seller seminars, hire a good real estate attorney to write the purchase and sale contract and make sure the sale is contingent (among other things) on both of you lawyers (buyer and seller) review the contract. Of course, ask your lawyer if any questions come up along the way.
8) Can you close a sale? The seller does not need to “close” the sale and most likely will not even attend the closing. That is one of the reasons to hire an attorney to represent you. A good attorney in addition to the lender (plus a buyer’s attorney) should help keep things straight. Our advertisers actually receive a list of steps to take before closing as a courtesy, as well as access to a 160-page, step-by-step “how to” book called “How to Sell Your Own Home.”
So can you sell your own home? Of course he can. The author, in saying, “Most homeowners, however, recognize the wisdom of working with a trained and licensed professional to handle the many complex details of selling a home,” was obviously thinking of a real estate agent. . We think the professionals involved should be: a licensed attorney familiar with Mass. real estate law, a mass. Licensed Professional Home Inspector and a Mass. Licensed Professional Appraiser. Together with the seller of the house, this is the winning team!
Agents hope that home sellers haven’t taken the time to educate themselves and are relying on ineffective advertising and marketing methods. Agents are well aware that they have a higher chance of capturing a listing from a frustrated FSBO seller due to improper advertising methods. Sellers who understand that exposure is a key element to a successful sale will not fall victim to this unfortunate scenario. Remember, a well-maintained, fairly priced, and attractive home can and WILL sell itself, with the right exposure.