Thinking you might save yourself some money and For Sale By Owner? Let me tell you a story.
One of my lenders called to tell me she had a buyer for me, people she had been working to get pre-approved for months were finally ready to buy. It would be super easy because they were buying the home they were renting for the past 4 years. The landlord did not want to involve agents, however he was willing to work with a buyer's agent. The sales price was already agreed upon in the neighborhood of 190,000. I couldn't believe the deal they were getting on this house. What a nice landlord right? I couldn't wait for the appraisal to come in, and when it did, sure enough it did not disappoint. The appraisal showed the market value to be close to 260,000.
1. MONEY - Let's do the math: 70K difference between sales price and appraised value in the buyers' favor, commissions for listing agent would have been 7,800. Poor guy, lucky tenants.....40% of FSBO sales are to a neighbor, friend, or family member. The typical owner sold home sells for 190 compared to 250 for agent assisted sales. (It's funny how the numbers in the story above match up.) Is it worth it to leave that money on the table? Sometimes it is, but then there's the paperwork. Hire an attorney to do it and you're looking at similar costs without the market knowledge and stream of qualified, vetted buyers.
2. SAFETY - owner sold homes are an easy target for criminals. They can schedule showings directly with the seller, show up unannounced if there is a sign in the yard and play on the emotions of the seller in order to gain entry into the house. Are you going to escort these strangers or give them free run; what's worse?
On the other hand, when you list with an agent, the home is shown by other agents, guests are accompanied through the home and are properly vetted prior to showing. There is a record of the agent who showed the home. Bottom line, the intentions are likely to find a home to purchase, not to burglarize you, or worse.
3. TIME - are you prepared to stop everything you are doing and sell this house? You will answer calls all day, sometimes people who just want someone to talk to, so they call owners selling their properties for conversation. Sometimes these conversations are to argue the value. It's true.....and then there are those who want to tell you their whole life story in hopes you will owner finance with zero down, showing up with homemade cookies because they were in the neighborhood. Are you ready for that?
You hear success stories, but can you imagine the landlord/seller's side of this story? Something like this perhaps...It was seamless, he didn't have to do anything at all the prepare the house to sell or put it on the market. I suppose what he doesn't know won't hurt him and this was a win/win for all. Would your rather NOT know or be 70K richer? Call or Text me for a complimentary market analysis 512-783-5609.
The image was taken during a proud moment after a successful buy/sell for a favorite fellow law enforcement family. If you like this information and know someone thinking about wasting time and money fizzbowing, please share! If you know someone looking to buy or sell, please send them my way. I will love to help!