From a FSBO in Sequim I received the following question. Enclosed is my response.
Question: I’m interested in selling my own home for one reason–to save the real estate commission. What’s wrong with that?
Answer: Nothing. That’s a good American reason to be a For-Sale-By-Owner. The question is, can you? In other words, do you know how to price your home? Do you know how to collect accurate information on fair market value? Do you know how to make adjustments in the prices of the comparables? Do you know the most and least effective ways to advertise and market? Do you have experience developing compelling sales scripts that will attact buyers? What about negotiating? Can you negotiate for top dollar while not killing a transaction with a good buyer? Do you know all about terms that change your net proceeds? Are you aware of the top mistakes that FSBO’s make regularly? Do you know about tax implications? Are you a competent document draftsman? Can you include all relevant terms and langauge without ambiguities? Do you know what legal documents are required by law in Washington and Clallam County, and in Sequim and Port Angeles? Can you help your buyer get a loan (there’s much more to this step than 99% realize)? Can you provide the kind of attention and focus needed from the day there is a written agreement with your buyer until closing? Iin other words, do you know how to be a transaction coordinator?
If your answer to all of these question is an intelligent “yes,” than I encourage you to sell your own home. But if you can’t talk for 20 minutes on each of these issues, you may be unprepared. It takes many of us a lifetime to really begin to get good at many or most of these steps. No one is naturally good at all of these things. There are too many details that must be learned on the street. If you have gained the knowledge and experience to competently handle all these questions and all the issues within each question, I would say, “Go for it, and God speed.”
Last Updated on February 19, 2010 by Chuck Marunde
