As we like to call it in the real estate business, FSBOs are happening all over the place. I have known quite a few friends to either buy or sell a FSBO home. It works out well if there is a predetermined buyer, so no advertising is needed. My mom is the perfect example of that. She is currently in the process of selling her condo as a FSBO, and she has a few people already interested in buying it once she is officially ready to sell. I understand why she wants to sell on her own and not hire a Realtor (aka - me) to sell it for her.
She doesn't need it listed because she already has buyers lined up.
Why pay someone a commission when she knows she has the interest?
She knows her condo is at a fair market rate.
My mom did her research though. She used to be on the condo board, so she knows exactly who sold, in what year, and what amount the condo closed for. That is a benefit of being in a condo. She also knows there is interest in her unit, because she is very active in the community and has been vocal about the fact that she is interested in selling her condo.
For some people, it just works out that way.
If you plan on either buying or selling as a FSBO, here are some things to consider. The owner most likely works a full-time job. Being able to take appointments to see the house is at their convenience. That means, if someone wants to see the home when the owner is at work, they're going to have to wait. If you are great at word of mouth and are super social, it's easy to get it out that your house is for sale. Not everyone is like that though. By working with a Shorewest agent, we have over 900 agents that learn that your house is on the market typically before the house even goes into the MLS. If an agent has a buyer looking for a home with specifications similar to your house, that agent will line up a showing right away.
I encourage you to look on shorewest.com to look at the pictures of homes. See how they are taken. Some of them will be incredibly gorgeous angles that highlight features in the home. Others will be darker images, or you might even see the reflection of the person taking the picture in the mirror or glass. I can almost guarantee that the homes with pictures that are bright, at good angles, and show an uncluttered room are taken by professional photographers. That is something that a full-service broker can offer. As a FSBO, quite often there are no need for pictures unless you are taking an ad out in the newspaper. Even the smaller brokers that offer to just list the home in the MLS often won't take pictures, so you are literally paying just to have minimal exposure.
You might be paying attention to what homes in your neighborhood are selling for. That's great! That's what you should do! Keep in mind homes almost never sell for the exact price as listed. Even in today's market, a seller's market, it is rare to get the asking price, let alone above asking price, unless you are willing to price your home at a more competitive rate. Not only that, but pay attention to the homes that you are following to help you base your price. You might have ten homes on the block selling, but are they all three bedroom, two bathroom ranches with newly updated kitchens and attached garages? All homes are different in some way, so it is important to adjust your price based on the pluses and minuses of how your home compares to others. That is where a Realtor can help make those decisions. We will never come up with an offensive number, but we will always take a fair assessment of what homes similar to your's are actually selling for, and will always let you make the ultimate decision on what you would like to sell your home for. Our job is to educate you on what is fair - at least, that's what a good Realtor should do.
You might have some projects around the house that need to be completed (or started) before selling your house too. You can go online and check out reviews of painters, plumbers, electricians, etc. to see who can help you. However, if you don't know to look to see what might need work, or what will hurt the home from selling, it's nice to bring in a friend or neighbor to just get their opinion about the home. Realtors have something called Broker's Opens. We invite other Realtors in the area to come over and look at the house. Not only are they looking for their buyers, but they are also looking to see if there are areas where the homeowner can do some improvements and if they agree with the home pricing. (I often wonder if that's what they do on Flip or Flop on HGTV since sometimes they only have agents coming through the home once it is finished.)
You found a buyer. That's excellent news! There are still forms that need to be filled out for the state of Wisconsin. Those are easy enough to find on the state website, and they are honestly easy enough to fill out. There are video tutorials and blogs on how to fill out the paperwork needed. Just make sure it is specifically for Wisconsin though, as each state has their own requirements. Keep in mind that taxes are usually prorated based on the previous years' taxes.
Next comes the title company. Here's hoping you know where your title is, and that it is a clear title. If you have your title, many companies will give you a discount, because they only have to do research on the title for the time that you owned the property. If you do not own it, then they often will have to do research on the home dated back to when the land was first purchased and the home was built. If you have a clean title with no judgments or liens, then you are looking pretty good. However, if you have a judgement or lien, you may have to hire an attorney to help clean up the title. That is an extra expense that you may not have been planning on.
You can always look into offering a home warranty too. Realtors often work with companies that provide it as a option for a minimal expense. The one we have is great, because you don't pay for the warranty until the house actually closes, a one-year warranty is transferred to the buyer at closing, and you actually get to take advantage of the benefits as well while the home is on the market. I truly do not know the cost difference if you are a FSBO getting a home warranty though. That is something to look in to.
If you are planning to buy or sell as a FSBO, I hope this helped you. You truly can do it on your own, and I hope that there is some information that can help you market your home better. However, if you read this and realized there might be more to buying/selling a FSBO than you originally thought, I'd be happy to talk with you at no cost to you to see if a Realtor (aka - me) would be a good option for you.
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