8 For Sale By Owner ( FSBO) Mistakes to Avoid

#1- Pricing Incorrectly– Overpricing your home puts you at a serious disadvantage. Buyers are smart and they or their buyer’s agent are keenly aware of a fair and honest value. If your home is over priced, buyers will simply not consider your home and go elsewhere. Considering that most all activity occurs the first 3 weeks after your home is listed and considering you have scared away these buyers, you are now working with only a small fraction of people that could have been the buyer you are looking for.

Overpricing also slows down the sale of your home making it “old inventory”. Smart buyers and agents are aware of this and will be even more tenacious when negotiating the final sale price. Price your home fairly.

#2– Neglecting to Prep the Home–It only makes sense to fix up your home so it is more appealing to buyers, Things like landscaping, paint, clean carpet, decluttering and a deep cleaning are essential to having your home in “show case” condition. Ignoring these easy, yet time consuming tasks can seriously affect the number of offers you get and the price you receive.

#3– Hanging Around Buyers During A Showing– Buyers feel “uncomfortable” when the owner is around and often do not voice their opinions in the presence of an owner. Please let the buyers roam freely about the home, yet, be on hand to answer any questions. Only when a buyer feels comfortable can they visualize themselves in the home, and determine how this home feels to them.

To further add comfort, please remove your pets from the home or have them in a “safe area” away from buyers. Pets are great companions but can scare off buyers in a hurry! Some people are simply afraid of animals or are allergic. For your pets safety and for best presentation of your home, have all pets and their supplies ( litter boxes, bowls) out of sight.

#4– Not Being Flexible With Show Times– Let’s face it, it’s not fun and a big inconvenience having to drop what you are doing for a showing. However, the more flexible you are, the more buyers can view the home and the more chances of an offer you will get. Please be flexible when it comes time to show your home.

#5– Not Being Prepared– Buyers want to know everything about your home so they can make a wise decision. Please take the time to get the following items so your can quickly satisfy buyers inquiries:

• ¨ Tax documents ( school and property)
• ¨ Utility bills– 3 months is usually sufficient
• ¨ Property Deed– Available from County Clerk
• ¨ Home Owner Association Fees and Coverage
• ¨ Sewer, Water bills

Also, start to get your “professional team” together starting with a real estate attorney. You never know how quickly offers will start coming in ! When they do you want someone you can trust to review the contract and represent your best legal interests. Start looking for an attorney now.

#6- “Boxing Gloves” Negotiations– Be positive when starting the negotiations with the buyer. After all, you both want the same thing– a sale! Remember the best offers are often the first offers so be sure to take them seriously regardless of the value of the offer.

#7– Over Improving– Be careful when taking on a major project before you sell. Spending too much on remodeling projects can drain money out of your pocket. If your improvements will push your homes value more than 20% over the average neighboring home values; don’t expect to recoup the entire cost.

# 8– Not paying cooperating real estate agents fees.—Who knows the area better than an agent and when your home comes on the market, they may just have your buyer! Agents typically charge anywhere from 2 1/2-4% of selling price for their fee if their buyer submits an accepted offer on your home, Considering listing your home would cost 6-7%, this small fee results in quick sale and saves you money and your precious time! If you elect not to pay the fee, the buyer must pay it which can and often does dissuade the buyer from purchasing your home, Think long term and at the “big picture.”