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For Sale By Owner -- Is It Worth It?

by Mark Brace

Sell Your Home Yourself And…You Can Save The Commission! Many homeowners believe that to maximize their profit on a home sale, they should sell it themselves. At first glance, they feel selling a home is simple and why should they pay a broker fees for something they could do themselves? In fact, close to 25% of all the homes sold last year were sold For Sale By Owner (FSBO). However, close to half of the FSBOs said that they would hire a professional next time they sold. Thirty percent said they were unhappy with the results they achieved by choosing FSBO. Why? Many FSBOs told us that the time, paperwork and everyday responsibilities involved were not worth the amount of money they saved in commissions. For others, the financial savings were even more disappointing. By the time they figured the amount of fees paid to outside consultants, inspectors, appraisers, title lawyers, escrow and loan officers, marketing, advertising...they would have been better off having paid the broker’s fee (which would have included many of these charges up front). Selling a home requires an intimate understanding of the real estate market. If the property is priced too high, it will sit and develop a reputation for being a problem property. If the property is priced too low, you will cost yourself serious money. Some FSBOs discovered that the lost money as a result of poor decisions outweighed the commission. Before you decide to sell FSBO, consider these questions and weigh the answers of assuming the responsibility versus employing a professional. A little time spent investigating up front will pay off tenfold in the end.

Questions To Consider:

  1. Do I have the time, energy, know-how and ability to devote a full-forced effort to sell my home? One of the keys to selling your home efficiently and profitably is complete accessibility. Many homes have sat on the market much longer than necessary because the owner was unwilling or unavailable to show the property. Realize that a certain amount of hours each day is necessary to sell your home.
  2. Am I prepared to deal with an onslaught of buyers who perceive FSBOs as targets for low-balling? One of the challenges of selling a home is screening unqualified prospects and dealing with low-ballers. It often goes unnoticed...how much time, effort and expertise it requires to spot these people quickly. Settling for a low-ball bid is usually worse than paying broker commissions.
  3. Am I offering financing options to the buyer? Am I prepared to answer questions about financing? One of the keys to selling, whether it’s a home, a car...anything, is to have all the necessary information the prospective buyer needs readily available and to offer them options. Think about the last time you purchased something of value: did you make a decision before you had all your ducks in a row? By offering financing options, you give the home buyer the ability to work on their terms and you open up the possibilities of selling your home quickly and more profitably. A professional real estate agent will have a complete team, from lenders to title reps, for you to utilize...they’ll all be at your disposal.
  4. Do I fully understand the legal ramifications and necessary steps required in selling a home? Many home sales have been lost due to incomplete paperwork, lack of inspections or not meeting your state's disclosure laws. Are you completely informed of all the steps necessary to sell real estate? If not, a professional would be a wise choice.
  5. Do I have the capability of handling the legal contracts, agreements and any disputes with buyers before or after the offer is presented? Ask yourself if you are well-versed in legalese and if you are prepared to handle disputes with buyers. To avoid disputes, it is wise to put all negotiations and agreements in writing. Many home sales have been lost due to misinterpretation of what was negotiated.
  6. Have I contacted the necessary professionals... title, inspector (home and pest), attorney and escrow company? Are you familiar with the top inspectors and escrow companies? Don’t randomly select inspectors, attorneys and title reps. Like any profession, there are inadequate individuals who will slow, delay and possibly even cost you the transaction.

If these questions raise some concerns, you may want to speak with a professional. We sincerely hope these tips and ideas are of value to you. If there is any way we can be of service, please contact our office. We would consider it a privilege to serve you! Best regards, Mark Brace

Associated Family Dentists of Grand Rapids, MI

by Mark Brace

Associated Family Dentists of Grand Rapids specializes in beautifying smiles, maintaining your dental health, and helping you improve your appearance. Our experienced and friendly staff takes great pride in keeping your smile beautiful.  And to make sure we promise the products we recommend and use are the highest quality and incredibly durable. You can trust your smile with us.Meet The Dentists:

Dr. Robson is a graduate of the University of Michigan and a member of the American Dental Association and the Michigan Dental Association.  He is a native of Grand Rapids.  He has been a partner in Associated Family Dentists since 1997.

Dr. Brace is a graduate of Marquette University and is also a member of the ADA and MDA.  He is also a native and started the practice in 1973.

Doctor Brace and Robson are some of Grand Rapids Best Dentists, they are focused on the practice of Dentistry and what you need to do to have healthy teeth, not the business of Dentistry and sell you on the latest and most expensive products, to make the most money (like new unhealthy whitening).

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Contact Information

Mark Brace, Realtor, ABR, GRI, CRS, SRES, e-PRO, A
Berkshire Hathaway HomeServices Michigan Real Estate
3000 East Beltline NE
Grand Rapids MI 49525
Direct: (616) 447-7025
Cell: (616) 540-7705
Fax: (616) 447-7025

Berkshire Hathaway HomeServices - Michigan Real Estate is a full service, locally operated real estate brokerage company backed by the strength of a solid national and global brand. Our full service businesses include Residential, Commercial, Relocation, Mortgage, Insurance, Home Services and New Homes & Land. Our core values, service philosophy, cutting edge technology, and most importantly our people are what make us the leading real estate company in Michigan. We are committed to providing the highest quality real estate services possible and making each customer's experience one that surpasses their expectations.