FSBO Madison WI Things to Know!
Can you sell your home successfully by yourself on FSBO?
The answer to this questions depends upon many factors. The best way to improve your chances for success is to be well prepared by analyzing your situation, doing your research and making sound decisions.
FSBO Selling Considerations
Price -make sure you do market analysis (before placing your home on FBSO) and research to assure you competitively price your property. It is helpful to tour other similar properties available on the market so you know your “on target” with your asking price. If you price too high you won’t get any lookers as they will feel your property is not in their market. Similar properties are actually your competition. Be sure to discover how your home stacks up against them. You will require comparable market facts to substantiate the value you have established in your home.
FSBO Advertising - Where do the “good buyers” come from? Who is shopping for properties in your neighborhood? Where should you spend your money advertising? What makes a good ad? When using FSBO you need to answer these questions and execute upon them.
Buyer Qualifications - be sure to eliminate the “shoppers” from the serious buyers. What is your ability to assess visitors motivation and ability to purchase a home? A lot of people like to house hunt just for something to do, while some have other motives. You need to learn how to recognize the serious buyers from the “shoppers” so you focus your efforts wisely.
Legal Contracts - Are you prepared to complete the necessary documents and contracts required for the legal process? All parts of an Offer must be specific and in writing. The “Contract of Sale” must spell out in detail the price and all contingencies such as:
- Financing
- Inspections
- Amount of earnest money
- Who the escrow agent is
- Date of Closing
- Possession date
- What type of title is to be given
- What happens if inspection fails
- And more…
Home Warranty - Are you prepared to arrange for the buyer to have a warranty on your home that would protect you and the buyer for several months? Given our current society we need all the protection we can get. A home warranty is an inexpensive and easy way to insure added protection. And it’s a great incentive for potential buyers.
Financing - Do you know who will make the best loan to the buyer on your type of property, in your location at this time? Do you know how to help arrange financing for a good buyer, if that buyer is a little short? Many times it takes a lot of persistence in obtaining financing and more than one lender may have to get involved. You need resources that can help you to find alternative financing.
Property Condition - As a FSBO you are required to fill out a property condition report and give it to a prospective buyer. Do you know what must be disclosed in this document? Every seller must fill out a Real Estate Condition Report. (The only exemption is for new construction that has never had anyone living in it.) You need to be sure to use the appropriate forms when disclosing “special” facts about lead, condition of a well etc.
Attorney - Do you know who will pay an attorney for abstract or title policy review as well as for the preparation of the deed and closing documents? It is highly recommended to seek legal advice when uncertain about matters such as this.
Closing - Do you know when the closing will be, who will be there and where it will occur? When does the seller give possession? How about the phone and utility switch over? Is the insurance all sorted? The proper decisions need to be made during the escrow period to insure a clean and successful closing.
Additional Details - selling a home, FSBO or otherwise, is a huge project, who is going to handle all the details for you?
- Coordination of inspection
- Removal of contingencies in writing
- Provide information to appraisers is required
- Order the Title Policy
- Handle earnest money
- Order a survey if required
- Arrange for a closing with a Title Company
- Do a final walk through
If you find FSBO selling to be somewhat overwhelming, I suggest contacting a real estate agent for assistance in selling your home.
Benefits of Hiring a Real Estate Agent
In addition to helping you to navigate the items noted above a Real Estate Agent provides:
- Branding
- Placing our sign in your yard associates a brand with you home or condo
- Additional Internet Exposure
- 90% of buyers use the internet to locate a home (NAR 2006)
- How did you happen to come across this website?
- Targeted Marketing Services
- Virtual Tours
- Targeted Mailings
- Neighborhood Specific knowledge
- Marketing Materials
- Newspaper listings
- Local weeklies (outside of Madison)
And much more!
Disclaimer, yes this is a bias perspective, and I am a real estate agent. However, the points above are valid and worth careful considering.
Feel free to drop me a comment or contact me, Jamie Miller, today for assistance in selling your home!