To FSBO or not to FSBO

OK, It isn't Shakespeare but it is an age old question all Sellers ask themselves at some point or another. As a Realtor who definitely believes in the power of having a professional on your side and as an invidual homeowner who has successfully sold a home "By Owner" (and who really likes her equity!) I thought I'd blog about a few pros and cons on the whole FBSO issue.

Point One: Obviously one of the biggest benefits of selling FSBO is that you the homeowner get to keep all that lovely commission in your own hands - and who wouldn't like that! The down side to that is you also have to shoulder your own advertising & marketing expenses, bear all the liablity of potential lawsuits, and fight off a million and one realtors who are just dying to list your house!

Point Two: Some Sellers really love the idea of connecting with the family who is purchasing their beloved home. As a people person, I can really get into that myself. In a perfect and easy transaction it can be a real joy to build that relationship, but there are some potential risks here as well. The reality is we don't live in Mayberry anymore and not everyone is easy (or trustworthy) to work with. I had a good friend who sold her house by owner and initially had a great relationship with the buyer, but over time the buyer became rather needy and a bit demanding of their time.

Point Three: I once had a client who just loved the art of negotiating and thought he would prefer to sell "By Owner" so he could sit down and deal with the Buyers face to face. Again, in theory this sounds good but in reality it is very difficult to keep emotions out of the negotiations when a) you are dealing with your own property and b) most likely you have made some connection with the Buyers by this point. In the end my client lost the deal due to poorly handled negotiations and ended up with his property sitting a lot longer than it needed to.

So, am I saying FSBO is a bad option and should not even be considered? Absolutely not! Here is what I tell my clients who are considering a FSBO situation:

a) Get really objective about your own personality and skill level. Are you good with people? Can you handle stress well? Are you too trusting? Are you comfortable with contracts and legal jargon? If you don't feel you or your spouse can handle it then you are better off putting a professional on your team.

b) Get really objective about your property ! Too many FSBO Sellers get greedy and try to price their home as if they were paying a full commission. You need to give buyers an incentive to choose your house over one that is listed. Be competitive! Also think about your location & condition. Is your home super sharp? Are you in a prime location? If so then FSBO may be a good option for you.

c) What is the current market in your area? Is it a hot Sellers' market or is it lukewarm? The odds of moving a home in a lukewarm or cool market are much more difficult without the networking power of a Realtor on your side. Be realistic about your chances.

d) How much equity do you have? In this crazy economy we are in many times Sellers find themselves with no real equity to speak of. In essence they are "forced" into a FSBO situation by their current financial circumstance. If you find yourself in this position and don't really want to deal with selling by owner, you might find it encouraging to know that a Realtor may be able to work with your lender to negotiate a way for you to get your home sold with out you having to bring money to the table.

Bottom Line: Selling FSBO can be a viable option, but only under certain conditions. If you are thinking about selling FSBO, I recommend testing the market for a maximum of 6 weeks. If you don't get some serious interest by that point then it is time to call in the professionals. If you live in the Johnson County, KS area and would like an objective opinion of your property's condition, recommended pricing, and overall FSBO potential please feel free to give me a call. I'd be happy to help you get started on the right foot and I promise not to ask for your listing!

Lisa Gaiche ~ RE/MAX Real Estate Group ~ Olathe, KS ~ 913.486.3764 ~ lisag@remax.net