Five FSBO Fears

By: Wee Dilts ... Click on author's name for more of their articles

Introduction:

Selling by owner (FSBO) can be frightening. You've been told by brokers that you can't do it. Your friends and neighbors may be skeptical and you're not too sure you know what to do.

Yes, you need a sign in the yard and an ad online and in the local paper but then what?

There are five legitimate things to be concerned about, they are the Five Fears of Selling FSBO

Five Fears

1. Traffic

Without traffic you will not find a buyer. Brokers have the MLS which gives them exposure to thousands of qualified buyers. What do you have? What can you do?

I suggest you consider cooping with a buyer agent since they have qualified buyers. Pay then two or three percent. You still save one half of a full commission.

Or find a company who will put your house in the local Multiple Listing Service (MLS) for a Flat Fee, usually $200.00 to $300.00.

Make sure that you can still sell without a Broker and pay no further commission. Ask for an Exclusive Agency contract. Not an Exclusive right to sell, with an exclusive right to sell contract you lose your right to sell by owner.

2. Advertising

Do you know how to write an ad? Search online for ad writing tips. You'll find several tip lists. Pick a simple one and follow it, you'll probably do fine.

Where to advertise? Here again, Brokers have access to many online sites that you as a for sale by owner do not, such as Realtor.com.

Recently many areas offer their Broker members access to List Hub which gives them access to Google, Yahoo, AOL and at least twenty other real estate sites. That is heavy duty exposure.

You will automatically be placed on these sites with a Flat Fee listing.
Think about it.

3. Contracts

Where will you get contracts?
Will they meet your States requirements?
Do you know how to fill them out?

If you know the answers to these questions then you're fine, if not you might want to consider hiring an attorney to write your contract or find a Broker who is willing to write and review your contract for a nominal Flat Fee. A contract review service should cost you around $280.00 to $300.00. That's still, a lot less then paying a full service commission.

With either an attorney or a Broker writing the contract, you are assured of their using the correct State approved forms.

Avoid legal hassles down the road.

4. Contract coordination

A huge mistake that many FSBOS make is to think that once they and the buyer have signed a contract that the deal is done. NO.
The transaction is closed only when you have a check from the title company in your hands.

There can be as many as thirty inspection and completion details in a real estate contract, each with a separate contract deadline. If any one of these deadlines isn't met, your contract can be void.

Brokers have the edge here too, as they do this all the time and are familiar with how to follow a contract to closing.
You can do it; however, I would urge you to consider hiring a broker to do the contract coordination. You can find someone to do it for a Flat Fee usually $380.00 to $450.00.

Take the hassle out of closing. You should be busy packing and reading for your move.

5. Forms

There are numerous disclosure forms that your State will require. If they're not filled in on the appropriate form, you could have legal hassles later.

If you choose to have a Broker do you contract writing and review, they will provide you with the required State approved forms.

Think about it. $280.00 to $300.00 is cheap for peace of mind.

Summary:

These are the five concerns you should have as a For Sale by Owner.

They are real and you should consider carefully if you know how to handle each and every one. If not, consider Flat Fee services for:

Multiple Listing Service (MLS)
Contract Writing
Transaction Coordinating.

Here's a sample breakdown the savings to you, even after paying all the Flat Fees.

Let's say you have a $200,000 house for sale and you pay six percent for a full service listing that's:
$12,000 in commission.

Hypothetically, if you used all three Flat Fee services and paid:

$249.00 MLS,
$279.00 contract review
$379.00 Transaction coordination.

$907.00 Your cost

$11,093 Savings

Even If you paid a Buyer Agent three percent ($6000)

You would still save $5,093.00

Worth thinking about.

Copyright © Wee Dilts 2009

Article Source: ABC Article Directory

About The Author: Wee Dilts is the originator of Flat Fee MLS services. She has been in business since 1983. She has helped thousands of FSBOS save commission dollars. Get the information you need to effectively sell without a broker. If you'd like to read Free articles about how to sell real estate by owner. Excerpts above are from her best selling "How to Sell Real Estate by Owner" ebook, visit: www.fsbofriend.com .

Note: The content of this article solely conveys the opinion of its author, Wee Dilts

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