Thinking of Selling?
For-Sale-By-Owner (FSBO) vs. Listing with a REALTOR®
You may be thinking of going it alone and selling your home as a FSBO. If so, you’re probably wondering how the whole process works…how do I find potential buyers? How do I accurately price my home? Where can I get all the paperwork involved with a sale? How can I be sure the contract is airtight and a savvy buyer won’t take advantage of me? All good questions – you should be sure to have these answers before you navigate the waters by yourself.
Of course I am biased, but I always recommend that sellers list their home with a licensed Michigan REALTOR®, but if you are brave enough to do this on your own, I hope you will find this series helpful.
Finding potential buyers: Advertising a FSBO
Print Publications – The Traverse City Record Eagle, other local papers
Signs – yard signs and directional signs
Word of Mouth – tell your friends/family/coworkers (over 56% of FSBOs are sold to friends/family)
Public Bulletin Boards – create a flyer and post copies anywhere you can
The more buyers that know your home is for sale, the better chance you have of selling quickly!
…by listing with a REALTOR®…more buyers (and I mean MANY more) will know that your home is for sale. The MLS (Multiple Listing Service) is a database used exclusively by real estate agents 1) to share pictures, virtual tours and detailed information about the property they are listing with other agents and potential buyers, and 2) to search available properties for their buyer clients. Over 80% of home buyers start their search on the internet using websites that pull data from the local MLS (Multiple Listing Service) every night. Over 90% of buyers use a real estate agent to purchase their home. Bottom line: if you’re not listed in the MLS, you’re not in front of the majority of buyers who start their search on the internet, or in front of the REALTORS who help those buyers.
…by listing with a REALTOR®…you don’t have to coordinate and pay for the marketing of your home. As a matter of fact, you pay NOTHING until your home sells. You also do not have to field information calls from “tire-kickers” or agents who just want to list your home.
Finally, …by listing with a REALTOR®…the potential buyers who will see your home are generally serious, qualified buyers. One of my duties as an agent when showing homes to my buyer clients is to verify that they are qualified to purchase a home in that price range. FSBO buyers may not have even spoken with a mortgage lender yet. Why test drive a Porsche when you can only qualify for a Hyundai?