With the advancement of technology and the increasingly more adventurous nature of the younger generation, there’s been a rise in popularity from the do-it-yourself movement, especially when it comes to products and services, purchases, projects and yes, even real estate.
In real estate, the DIY method for selling your house is more commonly known as FSBO (For Sale By Owner). Although FSBOing has been around for a while, agent-assisted sales have been the go-to solution for both buyers and sellers over the years. However, with more and more people wanting full control over the whole process, FSBOing might be an option to consider.
Here’s what you need to know before going the FSBO route.
6 Tips Before You FSBO
If you’re planning a DIY property sale, there are a lot of things you need to be aware of. Here are 6 tips to keep note of:
1. Selling’s a full-time job
Yes, you read that right. That’s why there are real estate agents and brokers. They’re licensed professionals with market knowledge. Realtors are required to pass exams to obtain licenses before they can begin practicing. Many have been practicing for years and some even work overtime to help their clients.
Before selling your property on your own, it’s highly recommended to know what you’re getting into first. We aren’t saying that you can’t sell your own property, because you can. What we want you to know is that you’ve got to be a quick learner, otherwise you’ll get caught feeling left behind very quickly.
2. Do your research
The main part of being a quick learner is doing your research and due diligence. The real estate process involves a lot of discipline and effort.
Understanding your local market will help you determine your asking price. Setting the right price is vital in your home’s saleability. Needless to say, a price that’s too high will sit on the market longer than it should, while a more aggressively priced property will attract more and robust offers.
3. Listing the property
The listing of your property is crucial. The goal’s to attract as many potential buyers as possible. Being skillful with networking, the sales process and marketing knowledge will be among your strongest assets to put up an effective listing.
Buyers are becoming more tech-savvy and many utilize online listings when searching for a home. This presents both opportunities and challenges for you as a seller. On one hand, you’re able to reach hundreds or even thousands of people with just a few clicks from the comfort of your home.
On the other hand, the challenge is to convert your online traffic into interested buyers who can present a good offer and close the sale. This is where internet exposure, advertising, marketing and the way you portray your home comes in. You’ll have to manage the expectations of potential buyers by keeping the property looking sharp so it’s congruent with the listing information, details and photography.
4. Staging the property
Another key part of the process is the proper staging of the property. This should be done prior to listing, in order to maximize high-quality photos that’ll showcase your property in all its glory.
Staging your property entails a lot of time and effort in getting it right. Remember that buyers aren’t interested in your personal lives and displaying sentimental and personal items may turn them off and make it harder for them to visualize the space as their own. Keep the property depersonalized and decluttered.
Since staging’s a lot of work, you’ll have to allot some of your budget for this step. What do we mean? For one, your home’s furniture may still be usable, but the decor might not generate interest. You may have to purchase artwork, some lamps or a few pieces of furniture to complete the ambiance that potential buyers are looking for.
You can also look at working with professional home stagers so you won’t have to shoulder all of the work by yourself. If you have a flair for interior design, you may be able to stage your home yourself, but when deciding to take on the property’s staging cost, consider your timeline, finances and the current state of the local real estate market.
5. Be prepared to negotiate
Dealing with potential buyers and their agents can be very stressful. You’re going to have to negotiate with them or their agents, to find common ground that’s a win-win for both parties.
Negotiation involves strategic discussion that resolves an issue in a way that both parties find acceptable, in this case, the buyer and seller of the property. By negotiating, the parties involved try to avoid arguing but agree to reach a compromise.
6. You’ll be handling all the paperwork
Lastly and one of the most dreaded parts of the process is all the paperwork and documentation. These are usually handled by realtors. However, since you’re going to be FSBOing, be aware of the legalities.
Bonus: Sell to an iBuyer
If getting your property ready to be sold on the market seems like a daunting task and you’d rather just have the property sold quickly without the hassles, there’s a solution to that.
Introducing iBuyers. iBuyers typically offer a cash payment based on market data and other tools. If you agree with their offer, the deal can close in just a few days. When dealing with iBuyers, be assured that it’s a guaranteed deal.
This trend is gaining traction nowadays due to its quickness, efficiency and the fact that the property can be sold ‘as is’.
Is FSBOing for You?
Deciding to DIY on your property selling journey can be a huge milestone or stumbling block depending on your level of skills, knowledge, preparation and perseverance.
Before you make the decision to FSBO your property, consult with a real estate professional to weigh your options.
We’re Here to Help!
Jellyfish Real Estate’s a team of real estate professionals. Our goal’s to simplify your life, so you can spend less time worrying about real estate and more time enjoying life.
If you’d like to learn more about real estate or if you have any questions or concerns about selling your property, buying your next home, opting to rent or rent-to-own, visit our website or contact us today.