To Fsbo or not to Fsbo?

Author: Nef Cortez

| Posted: 11-02-2007 | Comments: 0 | Views: 27 | Rating: (50)

(?)

Each year many homeowners decide to maximize the profit on their home sales by

selling it ¡°For Sale By Owner¡±. At first glance, this is the most tempting

option to most homeowners especially in the current real estate market with its

rapid appreciation rate. Why pay substantial broker fees when they can pocket

several thousand dollars themselves? While this attitude is completely

understandable it doesn¡¯t realistically reflect the services a professional

realtor truly does offer.

Last year, according to the National Association of Realtors ¡°Profile of Home

Buyers and Sellers¡±, 13 percent of all home sellers chose the FSBO route. More

telling than these numbers, is the fact that one third of all FSBOs sold their

homes to someone they knew prior to the transaction which means that the actual

figure of FSBO transactions to strangers is realistically at eight percent.

This is a significant downward trend from 18 percent eight years ago.

Even more telling was that only half of last year¡¯s FSBOs, according to the

article, plan to go it alone again. Why? Many FSBOs are not aware of the

increasing complexities of the transaction process, especially in California,

with more complex disclosures and legal requirements required than ever before.

In addition, they were often unprepared for the required time to market and

show their property, the competitiveness of the real estate industry, and

awareness of the various fees required for outside consultants, inspectors,

appraisers, title companies, escrow and loan officers.

Of course, this does not mean that selling your home via FSBO is not a good

option for some home sellers, in some cases it may be. However what it does

mean is that you need a clear idea of what responsibilities you will be

assuming in contrast to hiring a professional realtor and calculating whether

the costs and time invested will be worth it to you.

Some questions to consider if you intend to FSBO:

1) Do I have the time, energy, skill-set and ability to devote in selling my

home? 2) Am I prepared to deal with an onslaught of buyers, including savvy

investors and realtors, who perceive FSBO¡¯s as targets for low balling? 3) Do

I know how to market my property properly? 4) Am I familiar with the trends in

the national real estate industry as well as my local real estate market? 5) Am

I prepared to offer financing options to the buyer? 6) Will I be dealing with

only pre-qualified buyers? 7) Am I prepared to answer questions about

financing? 8) Do I fully understand the disclosure process and legal

ramifications for my state? 9) Do I have the skill-set to successfully

negotiate the handling of legal contracts, agreements, and any disputes with

buyers before or after the offer is presented? 10) Am I familiar with competent

professionals that will be involved in the transaction such as title, home

inspectors, appraisers, escrow company and their fees? 11) Am I able to project

and account for all the hidden costs, time factored in, marketing costs, and

fees paid?

The above items are a few of the factors that the home seller should consider

before selling his home on his own. Also, one important item to keep in mind is

that very much like the title of Harvey Mackay¡¯s famous book, ¡°Swim With The

Sharks¡±, real estate is very competitive and the buyer is just as equally

motivated to get the lowest sales price, with the most concessions as the

seller is to get the highest sales price the market will bear.

Most importantly, the facts are, sellers make more money when they use a real

estate professional. According to the National Realtor¡¯s Association survey,

¡°Homes sold with the assistance of a real estate professional in 2005 sold on

average for 16 percent more than FSBO sales.¡± As in many other industries,

realtors vary in experience and skill level. Real estate is as populated with

mediocre realtors as well as with excellent ones. However, hiring a skilled,

full-time professional realtor, who is in the top twenty percent of his

industry, to handle your sales transaction will be worth every penny of his or

her¡¯s broker fee.

Nef Cortez has been a licensed real estate broker and has held various

positions in the real estate industry for over 25+ years. Visit his website at

Diamond Bar Homesfor information on foreclosures.

for more information visit http://www.nefcortez.com

Rate this Article:

Current: 0 / 5 stars - 0 vote(s).

Article Tags: Real Estate, Realtor, For Sale By Owner, Homeowner, Disclosures, Broker Fee

Article Source: http://www.articlesbase.com/real-estate-articles/to-fsbo-or-not-to-fsbo-103485.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:

Nef Cortez has been a licensed real estate broker and has held various positions in the real estate industry for over 25+ years. Visit his website at Diamond Bar Homes for information on foreclosures.

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

How You Can Choose A Great Realtor
By: Craig Chambers | 28/08/2007 | Non-Fiction

Preparing your Home for Sale
By: Lisa Buth | 30/11/2007 | Home Improvement

The Basics Of Investing In Real Estate
By: Edwin John | 22/06/2007 | Real Estate

Sell Your Home in 2 Weeks for Top Dollar
By: Ron | 04/06/2008 | Real Estate

Do Not Buy Real Estate!
By: Tammy Ferguson | 14/10/2006 | Non-Fiction

Negotiating a Better Real Estate Listing
By: Ron Coleman | 30/09/2008 | Real Estate

Chicago Home Owners: Todays Real Estate Market and How It Affects You
By: Kris Kombrink | 02/10/2006 | Real Estate

Easy Buy Your Home for Good Price
By: Robert | 30/05/2008 | Real Estate

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

Disposition of harvestable crops on land in the process of being sold
By: wayne | 27-10-2007
what is the law regarding property in the process of being sold which has harvestable crops on it? Do the crops belong to the buyer or seller.? If the seller owns the land until paid can he harvest the crops until he is paid?

Real estate for sale by court order
By: miousa | 19-10-2007
Good morning I am an Italian citizen living in Germany . I am looking for web sites regarding real estate sale by court order in USA . have you any adress for me ? Thank you very much . Luca Appolloni phone +491722976556.

Real estate opportunity in india
By: sudhir | 15-10-2007
Real Estate Industry has shown a downfall in Indaia as well as in whole world.Although it is short term,but how much this sector effect from that condition

Ancient Egyptian Pyramids
By: Decoy13476547346543 | 08-10-2007
Decoy

How do i not let my parents see my myspace
By: millcreek56 | 30-09-2007
how do i not let my parents see my myspace

How will i know if a judgment lien has been filed ...
By: dunnm1 | 25-09-2007
How will i know if a judgment lien has been filed against me? Will I be served by the sheriffs department or will I be notified by mail?

Q&A Powered by:

Latest Real Estate Articles

Lake Tahoe Luxury Homes - Lake Tahoe Luxury Real Estate
By: Adam Morien | 12/10/2008
Lake Tahoe is home to some of the most breathtaking luxury homes in the world. From the lakefront beach estates to scenic mountain top lake views, Lake Tahoe is one of the most sought after luxury home markets in the United States today.

Let's Talk Due Diligence....it is Vital for Real Estate Success....right?
By: Peter Vekselman | 12/10/2008
Let's Talk Due Diligence....It is vital for Real Estate Success....Right?

Are Real Estate Investments Good Ways to Earn Money?
By: Jamie B. McIntyre | 11/10/2008
The recent credit crisis has made real estate into something almost taboo to investors, because homes across the country are losing their value by the day. Investors are disconcerted over how the stock market has been in an upheaval thanks to the sub-prime mess that has been going on for...

Investment in Dubai
By: Editor-123 | 11/10/2008
Now, even the foreigners can easily invest and can take active participation in the capital investment in this ever-growing market of the Dubai properties. Amidst the glasslike towers along the vast sea, Dubai promises increasing returns for its investors.

Profit From the Foreclosure Boom Through Powerful Foreclosure Training
By: DCFawcett | 11/10/2008
When real estate investors evaluate their options for what types of properties to invest in, some of the first things that come to mind are preforeclosure, real estate short sales, and other types of foreclosure properties. This tendency is a natural one. After all, sellers facing foreclosures are naturally going to be more motivated and that is what most investors are looking for.

Historical City of Apulia
By: Priya Singh | 11/10/2008
Apulia is "mare e terra", sea and land, a world of rich contrasts. The varied coastline and the hinterland with its cultivated farmland; the tranquil small towns and its cultural treasures.

Hawaii Homes and Volcanoes for Sale
By: Hedin Johan | 11/10/2008
Volcanoes can be found it most parts of the world and Hawaii is no exception-the beauty and lush landscape that comes with volcanoes is literally out of this world. When I suggested a few friends of mine to go visit the islands, I didn’t realize they’d come back with more than they’d bargained for.

Find Hawaii Homes for Closure and Profit
By: Hedin Johan | 11/10/2008
When we talk about the homes that are up for foreclosure, it really does seem like these homes and their families are closing down for good.

More from Nef Cortez

5 Low-cost Tips to Prepare your Home for Sale
By: Nef Cortez | 05/07/2007 | Real Estate
Real estate is sold throughout the year but when spring and summer roll around, one begins to see yard sales going up as homeowners prepare their homes for sale. The following is a list of tips that are low in cost and usually require nothing more than a few weekends and some elbow grease to get the job done.

5 Important Features to Consider When Buying a Home
By: Nef Cortez | 27/06/2007 | Real Estate
With so many questions to consider when buying a home, a buyer can get muddled in the myriad of details involved. However, the following are five general pointers that a home buyer should examine...

To Stage or not to Stage? Preparing your Home for Sale
By: Nef Cortez | 11/06/2007 | Real Estate
Gone are the days when you stuck a yard sale sign in a home that was being prepared for sale, held an open house and printed out flyers as some of the major tools for marketing real estate property. Read on to see how "staging" is changing the way realtors market your property.

Financial Documents a Homeowner Needs for a Successful Foreclosure Workout
By: Nef Cortez | 08/06/2007 | Real Estate
We’ve all heard the saying "Ignorance is bliss"; but purchasing a house or condominium with this attitude may be until the collector starts sending a homeowner those inevitable letters and they receive phone call after persistent phone call from their loan servicer…

Home Sellers--why Quality Photographs Help Sell your Home Faster
By: Nef Cortez | 06/06/2007 | Real Estate
Remember the old saying "Image is everything."? In this day of internet shopping for homes-- 80% of buyers last year used the Internet to help find a home according to the National Association of Realtors-- any homeowner interested in selling their home should keep this saying in mind as they prepare their property for sale.

The 5 Disadvantages of Condominium Ownership
By: Nef Cortez | 04/06/2007 | Real Estate
In the past condominiums were not considered to be a good investment for a variety of reasons, however that image has since changed dramatically. With the high price of single family homes, condominiums and townhouses are becoming more attractive to many buyers. Still, there are some disadvantages that still need to be considered before you buy.

Why Hiring a Productive Realtor is Essential
By: Nef Cortez | 30/05/2007 | Real Estate
Like any other industry, real estate has associated businesses and or partners that realtors consistently work with and this business association can mean all the difference between a great sales experience or a lousy one for the homeowner.

Buyer Beware! 3 Foreclosure Scams and How to Spot Them
By: Nef Cortez | 29/05/2007 | Real Estate
If at any time the adage of “Let the buyer beware” were applicable, it would certainly be when a homeowner is experiencing foreclosure. Distressed homeowners undergoing foreclosure are often approached by less than ethical business people…

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.29, 17)

To Fsbo or not to Fsbo?

Article Comments

Related Articles

Got a Question? Ask.

Latest Real Estate Articles

More from Nef Cortez

Need Help?

Site Links

Webmasters

Business Info

Sign up for our email newsletter