I want to sell my home myself

Written by Posted On Saturday, 19 December 2015 14:37


I want to sell my home myself

Information provided by John Ferrin, Realtor, HomeSmart Gilbert

Recently, an acquaintance approached me and asked if I was "still a 6% guy" or if I would consider reducing my fees to gain a listing. He explained that his girlfriend was about to list her home with an agent friend of hers and he had told her that "a true friend wouldn't charge 6%" so he reached out to me.  We have had this conversation several times over the years so I left it at "I guess we will have to agree to disagree" on the definition of a "true friend".

But, that got me thinking and I was reminded of a time a while ago when this same person said he didnt want to pay a commission when selling his house so  he was going to get licensed and sell it himself.  He thought this would be a great savings.  Ultimately, he never went to school nor did he ever sell his house.

I imagine this guy is not alone in his thoughts about paying a commission to a Realtor and many people have the thought, "I want to sell my house myself".

Everyone wants to save a buck. I get that. We all want discounts at the store, restaurants and many other places. Being fiscally responsible is a very important characteristic.

However, when it comes to the largest financial transaction of your life, the sale or purchase of a home, it makes sense to use a professional to ensure the job is done right and because it is vital to have an advocate in your corner.

If you are thinking of selling your home yourself, there are some things you ought to know. 

  • Do you know how to prepare your home for sale?
  • Are you knowledgeable in setting the right price for your home?
  •  Do you have the ability to negotiate the sale? You’ll be paying the buyers agent +/- 3% to negotiate AGAINST you.
  • Are you prepared to field all the calls and make time to set and keep all the appointments?
  • Are you prepared to qualify a legitimate buyer?
  • Do you understand all of the steps that take place after an agreement has been reached?
  • Do you know the most effective way to advertise your home?

This is just a handful of the many questions you will need to be able to answer when you are struck with the thought, "I want to sell my house myself".

But wait!  There's more.....

According to the 2015 Profile of Home Buyers and Sellers, which is a study conducted by the National Association of Realtors, you may want to rethink your strategy.

Consider this:

  • Only eight percent (down from nine percent) of recent home sales were FSBO sales. This is the lowest share recorded since this report started in 1981. (This means that 92% of all homes sold were agent assisted homes.  That leaves a mighty small pool of opportunity for the do it your selfer.)
  • The median age for FSBO sellers is 54 years.
  • Seventy-seven percent of FSBO sales were by married couples that have a median income of $104,100.
  • FSBOs typically sold for less than the selling price of agent assisted homes; FSBO homes sold at a median of $210,000(up from $208,700 the year prior), yet lower than the median of all homes at $245,000. (Did you catch that? Let me say it again: FSBOs typically sold for less than the selling price of agent assisted homes)
  • FSBO homes sold more quickly on the market than agent assisted homes. (Great news, right?  Hold on...) All FSBO homes typically sold in less than two weeks—often because homes are sold to someone the seller knows. (Statistics show that more than half of all FSBO's sold to someone they already knew.  Factor that into the already small pool of FSBO buyers, and your pool of buyers has evaporated to a small puddle.)
  • Seventy percent of successful FSBO sellers were satisfied with the process of selling their home.
  • Nine in 10 FSBO sellers who both knew and did not know the buyer were satisfied with the home selling process.

The type of buyer that will typically call you, the guy who says "I want to sell my home myself", is the discount buyer. They dont want a professional involved in the transaction, like, for example, an agent that actually knows the value of the property.

Their goal is to buy your house for as cheap as they can. They will always expect you to discount your price because there are no agents involved.

And, dont forget, as a FSBO, you are already severely limiting your buyer pool. If you are not willing to offer a  co broke percentage to a buyer’s agent, you have reduced your meager little pool even more.

Finding a qualified, unrepresented buyer, will be a daunting task. So…..for the sake of argument, let’s say that you are willing to offer a 3% co broke to a buyer’s agent. You are halfway there now. Is saving the other 3% (or whatever amount an agent in your area may charge for his services) worth the extra effort and rsik you take in selling your home on your own?

Given all the marketing resources a Realtor has available to him/her, and the time and energy they would devote to getting your home sold, wouldn’t you agree that the other 3% would be money well spent?

After you have considered the above information, and you still want to proceed on your own, I wish you the very best.  If on the other hand, you are curious and would like to simply explore your options, with a true Real Estate Professional, who will have your best interests in mind, and who will be your advocate in the selling process, please call me TODAY. The consultation is FREE, with No Obligation.

And, If I am not the right guy for you, and I cant help you achieve your goal of selling your home, I will tell you upfront, becuase I would rather let you down now, rather than let you down later.

Still thinking "I want to sell my home myself"?


John Ferrin, Realtor


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