The home selling process depends on many moving parts. Most first-time home sellers assume they’ll be listing and marketing for traditional buyers with the help of a real estate agent. But it doesn’t have to be this way!
In California, home sellers are weighing their options. Putting that For Sale By Owner (FSBO) sign out front takes courage and it isn’t for everyone. Choosing to do so may save you money but it will cost you time.
Every person and property is different. If you’re considering selling your San Jose home without a realtor, here’s what you need to know.
You can save on fees and commissions
Selling FSBO is appealing to many because it cuts out the middleman. A direct sale may mean keeping more money in your pocket. Generally, real estate agent fees set you back around 6% of the final sale price. When you do the math, this can run into the thousands of dollars!
Working with an agent typically binds you to an initial listing agreement. This gives them the exclusive right to sell so, no matter how you end up selling the home. For example, even if you find the buyer yourself, you’ll still owe your agent his or her commissions.
You’ll have less access to buyers
In theory, real estate agents charge big commissions because they spend a lot of money to advertise your property. By advertising lots of properties at once, they promise you more phone calls because they know they will make good profits by selling lots of houses. The question is, can you do the work yourself?
In order to market a home for sale effectively, it’ll be up to you to generate leads, make contacts and get referrals. Since 90% of homebuyers start shopping online, FSBO sellers with digital marketing skills can remain competitive on major channels like Zillow, Redfin and more. Taking advantage of traditional print ads is also advantageous.
In California, the average home value exceeds half a million dollars. If you plan to sell your San Jose home for an above-average price, be prepared for a significant decrease in prospective buyers.
There’s more opportunity for involvement
If being in contact with every prospective buyer at every step of the process is important to you, selling FSBO keeps you connected. Make sure you’re prepared to discuss everything from repairs, damages, and future upkeep. One of the perks of having an agent is having a buffer when it comes to laws and regulations. Selling solo means educating yourself on legal compliance and coming across sincerely and openly to inquiring buyers who have a right to know everything about the home.
Are you ready to declutter, depersonalize, fix, repair, rearrange and stage a house? You may enjoy cleaning and preparing your home for showings, but are you prepared to walk people through the property? Realtors are experienced with building value and overcoming buyers objections. For the inexperienced seller, the face-to-face interaction can be surprisingly challenging.
San Jose home buyers are searching for their dream home. For many home sellers, letting go is hard. Emotional attachment often gets in the way of creating a neutral, depersonalized home for sale that’s going to appeal to a wide range of buyers. This is a compelling reason for considering some third party involvement who acts as the voice of reason, especially when it comes to price or home staging.
There are no guarantees
More involvement in the home selling process should not be mistaken with more control. FSBO sellers must be adaptable and ready to change strategy. Going through the motions of listing, marketing and showcasing your property does not guarantee a bidding war. If there’s a lack of interest, be prepared to get even more involved.
Everyone wants to save money. That doesn’t mean you’re going to. Real estate professionals often regard FSBO sellers as weak links to be negotiated against. Nationwide, only 10% of FSBO are successful at saving money without hiring an agent. Make sure you’re OK with the odds stacked against you!
You control the price
Determining the price of your home is tricky. Real estate agents don’t guarantee a fair appraisal. Setting a fair price from the start will generate more interest and narrow the gap for negotiation. Usually, FSBO sellers to ask for too much. If you’re unsure, spend the money for an appraisal, do research and be prepared to defend your asking price (because you will be asked to a lot!) Once you’re confident about what your home is worth, your job is to relay that confidence to buyers seeking value for their investments.
Having a backup plan is key
Keeping a home costs money. The mortgage still needs paying as does insurance, taxes, utilities and upkeep. The longer you sit on your home for sale, the more it adds up. You can’t predict a quick offer.
You can’t predict to fail either. Buyers back out, bank loans fall through and things come up. Uncertainties are expensive so having a Plan B is key.
As we’ve discussed, home sellers have alternatives. If you’re not having luck with agents, traditional buyers or selling your home FSBO, contact us today to learn about our all-cash offers with a quick turnaround on your San Jose home!