Please share experiences, good or bad, about selling by owner. We are thinking with it being a seller's market right now, we may be able to do this. I've just begun reading up on it, but would really appreciate knowledge from those of you who have done it or gave up, finding it was just too hard! Thank you so much!
Edit: We're making many upgrades: new carpet, new exterior paint, mostly new paint in the interior, new kitchen sink and faucet. This house is modern and in great shape, it's only 13 years old, but did need these upkeeps. We have a pool, tennis courts, clubhouse etc. with a very reasonable HOA fee. I *think* we'll be able to sell quickly. I am definitely scared of any Joe Blow walking through the door with possibly bad intentions. We're in CO and I've read the inventory is very low and it's a seller's market.
my Sis just went thru this with her SO. He'd sold his own homes before, but always used a lawyer for the processing. This time around it was highly recommended he use more than that...by the lawyer. The lawyer's reason: banks are more finicky in today's world.
We tried it and couldn't do it. Had someone who made an offer but wasn't pre qualified so they got turned down by the mortgage company. Had people look at our house that I think were just nosey (neighbors). The good thing that came out of it though was a realtor contacted us who knew we didn't want to pay the full 6% commission. They sold our house for 2% plus $500 and then the realtor that brought the buyer got 2.5%.
bottom line....I would never try to sell my house on my own again.
FYI...where we live and I believe most of the country it is still a buyers market. Are there bidding wars in your area? What makes you think it is a sellers market?
I do not think I would do a for sale by owner. I also avoid them when buying (i have bought in the bay area and central coast). Most of the owners think they have the best house ever. The realtor helps because they filter a lot of the negative feedback and are the punching bag in a lot of ways.
The owner is also liable for disclosing more details if they are the FSBO. Your house seems new enough, but out here where there are older homes this has been an issue and the FSBO end up needing to get a realtor (I do not know the details, but i do recall this info from a relative). It was during 2005 the high of the market in our area and he still needed a realtor.
Look into it and see if it is worth it in the long run.
You could save 3% (listing agent fee), yet you will still need to pay buyer's agent (3%) and a lawyer. Many agents do not want to deal with owners and lead their clients away from your listing. You should focus on an incentive for the buyer's agent. Close the deal in X days and get a bonus. Also, several buyer agents lied to my listing agent (oh, yes my client is a dentist and can totally afford the house). Demand proof of funds.
Perhaps she means that a seller will be able to sell their home quickly if it's priced right....? Perhaps there would be multiple offers if the price is good AND the home is in good shape in a good neighborhood....?
I think that I would try it for a while if I wasn't in a hurry. It could be beneficial I guess, I'd hate to have to pay for all the stuff that a buyer might demand that I fix and it might be better to just give them an allowance off the price to do it to their own liking to begin with.
My sister had a Realtor come through her old old house and tell her she needed to update stuff. So my sister took down her Victorian borders and pictures, stuff like that. Then she put up new border. That new border still wasn't what other people would like so she wasted that money and turned down several prospective buyers because they wanted painting and wallpaper removal added to their budgets for fixing issues.
The family that finally bought that house told the Realtor they thought it was ugly inside but they were going to tear down a wall and do some renovations anyway. They told my sister it was adorable so she'd like them and accept their offer. The Realtor told her well after the sale was done and they'd moved to their now old house. They just moved again...lol.
So beware of people coming into your home. They could be serial killers and YOU are the person they make contact with, don't let them alone in the house unless it's empty because they'll pocket stuff, don't let anyone split up and one go to the garage and one want to stay looking at the bedrooms, they might be setting you up to do all kinds of mischievousness to you.
I would never want to be alone with strangers in a situation like this. You really do not have any idea who they are, what their bank account is like (if they are even able to afford buying a home and are just being nosy), and you have no idea "who" they are.
We've always used a realtor. I personally like having all the t's crossed and i's dotted just right. The realtor is a professional and knows a lot more than we think we do regarding the market, etc.
I did not like open houses because it is typically nosy neighbors coming through. Same with the info sheets out front at the for sale sign, mostly nost neighbors grabbing one to see how much you are asking.
Realtors have connections with mortgage companies and can make sure a potential buyer is qualified and you don't waste precious time of someone who can't afford or get the mortgage anyway.
On 2 occasions when we were selling, we were in process of building a bigger, nicer place. Our Realtor cut a deal where she represented us on both the sale and the purchase and we did $$ that way. The builder was the one who paid her commission, not us....:)
Our area has a lot of growth but I still would not call it a seller's market right now. It depends on the homes, homesites, etc. We get offers from realty companies about once every 2 months to see if we are interested in sellling because we are on a huge lot with a lot of privacy. All of the homes like us that are on the more private wooded areas sell like hotcakes because they rarely hit the market. Our neighborhood overall is very large and there is a very low percentage of homes on the market.
Good luck whatever you decide but my opinion is that it is worth negotiating with a realtor to sell your house.
ETA: I agree with Gamma.. NEVER be alone in the house with someone looking at it. There have been several instances around here where there was an open house and the realtor ends up dead or kidnapped and dead as well as valuables taken from the home.
We just sold our home in PA this way. We used Forsalebyowner.com . We offered a 3% commission to buyers agents and chose the option to have our home on realtor and the MLS. We sold in a week and it was super easy. Feel free to PM me if you have questions.
Give it a shot! We are selling with a realtor, but we just don't have a lot of time/energy to sell ourselves. Good Luck!!!
We bought a home for sale by owner.
It was easy peasy.
Get a home inspection, make copies available to lookers.
Make a list/menu of updates, maintenance, etc. during your ownership.
You'll need to work with a closing company.
