How FSBOs can compete against distressed properties

May 4, 11:07 AMReal Estate News ExaminerBroderick Perkins

Previous Next

Comment Print Email RSS Subscribe

Subscribe

Get alerts when there is a new article from the Real Estate News Examiner. Read Examiner.com's terms of use.

Email Address   Include other special offers from Examiner.com Terms of Use

ForSaleByOwner.com says those who choose to sell their home without the aid of a real estate agent can still get the upper hand and beat the competition even in a market loaded with distressed properties.

Keep in mind, in the time it takes for an owner to sell his or her own home without a real estate agent, he or she must muster the same experience it takes a professional agent years to accomplish.

Right now it's even tougher.

With distressed sales (foreclosures, bank owned, short sales, auctions, etc.) accounting for half of all home sales in some areas, FSBOs (for sale by owner) are not just competing with traditional listings.

To help FSBOs compete against properties with discounted prices ForSaleByOwner.com advises:

• Skip the agent. Hiring a real estate agent can cut into the proceeds of a sale by 6 percent. Without a commission to pay the seller can pocket more of the proceeds or use the savings to set a more competitive asking price.

• Price it right. The same advice sellers get from real estate agents applies to FSBOs. Price the home according to the current local market, not based on a price a neighbor obtained a year or even a few months ago. A licensed, certified, trade-group affiliated appraiser is best at setting a price based on the true value of a home.

• Market effectively. Use all available marketing channels, which are not always used by distressed properties. Public listing Web sites, creating your own listing site, virtual staging and a host of other approaches are available.

• Keep the home fit. Foreclosed homes are often trashed, in disrepair or in need of some work due to neglect. FSBOs should stage their home to give it the a model home appearance and ready for move in.

• Offer a quick close. Distressed property sales can take months to close due to title issues, repair concerns and other red tape. Offer a 30-day closing date to attract buyer who wants to move quickly.

• Qualify interested buyers. Right from the beginning, make sure any prospective buyer has a lender approval for the amount necessary to finance the purchase of your home. It makes no sense to spend weeks courting a buyer who doesn't have the wherewithal to actually buy the home.

• Get professional help. Just because you don't hire a real estate agent doesn't mean you should have an attorney or title company help you review the contracts and makes sure you are adhering to state and local disclosure requirements.

• Read more FSBO news that really hits home.