High fees charged by real estate agents have fuelled the DIY, for sale by owner (FSBO) trend among property owners. Since selling a property is a complex process that involves legalities too, the margin of errors is zilch. In this post will discuss the three major mistakes that as a property owner you may make when you FSBO your property.
1. Unrealistic Asking Price
When you sell your house on your own, setting the right asking price is a critical point. The majority of homeowners set a price to maximise their profits margins. Since you are going FSBO, you are already saving on agent’s fee. Remember: an overpriced house has almost no chance of being sold.
You must remember how you searched the market for a fair price when you purchased your home. It is how buyers generally operate. Since you precisely know what they are going through, you can be a step ahead in this game.
Go through a few ‘house-for-sale’ advertisements in newspapers and online real estate listings, located in your area. This step will help you find your house’s present and realistic market value.
2. Hiding Considerable Issues
Selling a house is supposed to be a fair and square bargain. As you want to pay for what you are offered, your home buyer deserves the same rights too. The majority of buyers get the home inspection conducted by a professional. So, the cat will be out of the bag, sooner or later.
It is recommended that you conduct a thorough home inspection and get the problems fixed before you put your property on sale. This expense will actually increase your house’s market value.
3. Emotional Involvement
Let’s face it: It is a tough and emotional deceison to sell your house, and it would be even tougher to suppress your feelings. If you spent your childhood in the very house, it will fuel the emotional intensity. Somehow or else, you have to distance from your feelings, since it is the need of the hour.
When you sell your house, start thinking of yourself as a home seller, rather than a homeowner. It helps you be rational when it comes to bargaining. Remember: a financial decision taken under the influence of emotions can’t be in your favour. You have to be strong now instead of regretting later. The worst part is that accepting a low-ball offer will get you in hot water financially.
Instead of letting your emotions be your weakness, make them your strength. Recall the emotions you experienced as a buyer of your house. It is time you persuaded people with emotions as well. Talk to them about their needs and future, understand that, and then show how the home will allow them to bring that future to the present with the purchase. This trick will help you close the deal at your asking price and terms.
Realising and overcoming this ‘mistake’ alone will ease rest of the selling process.
Hiring a real estate agent, either when buying or selling a house, is considered essential. But the agent’s fee may slash the seller’s profit margin to a great extent. However, when taking charge of your own sale, identification of the above-mentioned mistakes are great help for owner’s selling their house.
Remember: selling your house without engaging an agent may not be a breeze, if you’re doing it for the first-time. However, by gaining the right knowledge and insights about the process, and avoiding the mistakes we’ve discussed, you are sure to close the deal on your terms.