FSBO FAQ

    Below are some of the most common questions I get from FSBO sellers just like you. If you do have a question you want answered that you do not see below shoot me a quick email or call me and I will be happy to give you an honest answer.

    Why will agents not show my home to their buyers?
    There can be many answers to this question. The most likely answer is that if your home is not in the MLS then buyer’s agents are not aware your house is for sale. Some Realtors frankly prefer not to show FSBO homes because they have concerns about what they are walking their clients into. Some additionally have the mindset they will actually wind up doing the majority of the seller’s workload because they don’t have experience selling a home. These are only a few reasons but be aware that unless inventory is extremely low in your area, most realtors are putting FSBO’s at the bottom of the pile. Probably not what you want to here but reminder my goal here is to give you the reality.

    How many showings should I expect on my home before I receive an offer to purchase?
    A good rule of thumb is one offer for every 10 showings (provided your house is priced to market and shows well). I recommend that if you are getting lots of showings but not getting an offer there is definitely a reason and you should have me come out to do a quick walk-through to see exactly what is causing your home not to generate an offer. Sometimes it can be a few quick-fix items that can dramatically change the perception of the home.

    How do I know if my house is priced appropriately?
    There are a couple of ways. You can purchase an appraisal of your home from a licensed appraiser. This method however does not take into consideration the current market conditions and can be fairly costly. The second method of establishing an accurate price for your home is to have a competitive market analysis (CMA) done. Any Realtor will be happy to come and give you a listing presentation with the hope that if your home does not sell by owner you will choose their services to list your home. One caution with this method; choose a Realtor who surveys the entire market not just a sampling of three to five hand-picked homes. A true competitive market analysis will show all houses in your subdivision that match the criteria of your home (ranch, two story, split entry, etc.). Furthermore, it will also look at three areas: Price per square foot, total sales price in relationship to the market and average market time for your area. If your home is priced to market it will sell in average market time. If you need assistance with establishing your market price give me a call and I will be happy to go over a CMA for you.

    Why are buyers that showed interest in my house not contacting me back?
    It is very common for potential buyers when dealing directly with a homeowner to be very complimentary even though they may not like your house at all. One of the advantages of having an agent is that buyers will give honest feedback and criticism about their opinion of the home because they don’t have to actually tell the seller themselves. Also know your buyers…the buyers that are just looking around and are not serious do 2 things. They go to open houses and go see FSBO homes. Over 92% of real buyers have an agent. When your home is listed with an agent, real buyers see your home. The weekend non-serious casual lookers don’t have access to enter your home because they don’t have an agent.

    How long should I try to sell my home before I seek a licensed agent?
    This is a personal choice; it depends on how long you have to sell your home. The key to selling your home in average market time is to have it priced right. Overpriced homes do not sell. There is really only one reason a home doesn’t sell if it is in decent condition and that is price. Don’t leave money on the table, but if your home is priced several thousand dollars over every other home in the area it will not sell.

    I payed $200 for a Flat Fee MLS listing service but I want to list with an agent now…can I get my money back?
    Yes…here is how…the Flat Fee Listing Broker is not going to refund you your fee however being that I specialize in FSBO’s I understand this is a concern. Nobody wants to lose money. Any FSBO that wants to list with me gets my “Flat Fee Credit” which means that I will offset my commission when I sell your house by the standard flat fee rate that the local company charged you to list your home. No tricks here, it is important that you trust my process. This credit will be written right into the listing agreement we sign together so you know those are real dollars back in your pocket at closing.

    Should I pay a buyer’s agent a commission?
    If a buyer’s agent brings a qualified buyer with a letter of approval from a financial institution you should strongly consider paying a buyers agent commission. This should never exceed 3%. You may even be able to negotiate the commission down depending on the agent and your negotiating skills. Be aware that most of the time a good buyer’s agent will want to be protected on the front end to make sure they are going to be compensated so the agent may ask you to verify comission in writing before they actually bring you their buyer. It is customary for the buyer’s agent to fill out the purchase agreement. Just remember that this agent works for the buyer not you, no matter what the agent may say verbally. If you have any concerns about the uniform purchase agreement seek professional assistance.

    Should I pay for a home warranty?
    Many buyers will ask for this, particularly on an older home. This can be used as a negotiating tool or you can also offer it on the front end as a good faith gesture to assure the buyer everything is in working order and that he/she will have no repair problems in the future. All home warranties are different. Shop around and know what the differences are and what the warranty covers before making any decisions.

    Should I have my home pre-inspected by a professional home inspector?
    This is generally not recommended unless you want to know what items will be found in a home inspection with the intention of repair prior to putting your home on the market. If repairs are made make sure you keep copies of the receipts to assure prospective buyers the appropriate corrective actions has been taken. Typically the buyer should choose and pay for the home inspection. This allows the buyer to feel comfortable with this process and assures no conflict of interest.

    Should I accept offers with contingencies?
    Many offers you will receive will have some type of contingency. A contingency is any item that could allow either party to choose not to execute the contract. The most common contingencies are: Contingent upon the sale of a home or contingent upon a home inspection. Both are acceptable contingencies, but you must plan for them and know how to write the contract. These type of offers are often ones that are the most difficult to get to closing and representation by an agent or attorney is recommended.

    What makes you different than any other agent?
    There are many great Realtors in our local area that have many specialized skills. There are a few distinct skills and experience areas that set me apart from other agents. First and foremost I specialize in FSBO properties so I know exactly what you are going through and the challenges you face. I am known as “The FSBO Guy” around our Coldwell Banker office of over 500+ agents. I am the go-to guy for not only FSBO sellers but also other agents in the area that may be working with FSBO’s. They ask me questions on a daily basis trying to learn about how to help a FSBO that they know.

    Secondly one of the most important among several of the designations I hold is the CNE designation. This stands for “Certified Negotiation Expert.” This is a designation that I earned from the Real Estate Negotiation Institute and one that less than 1% of all agents nationally have earned. This title sounds great but what does it mean for you? It means that I know how to recognize and negotiate with every single agent and every negotiating style to put you as “my client” in the best possible position to maximize the money realized in the sale of your home.

    Another thing you should know about me is that I work almost exclusively with sellers. Why do I do that? I believe that when I sign on to sell your home that I should be devoting 100% of my efforts towards marketing your home to buyers and finding a buyer for your home. I do have agents on my team that work with our buyers so each one of our buyers agents on the team make it a priority to find buyers for our listings. There are many agents that split their time between driving buyers around and attempting to sell listings at the same time and that is fine and the majority of agents subscribe to that philosophy. This is where I differ… its a matter of choice really. Do you want an agent that works with buyers and that may only have one buyer that might be interested in your home…or do you prefer a different approach that allows me to spend 100% of my efforts towards finding as many buyers for your home as possible through marketing and networking.

    These are just a few of the many things that differentiate me from other agents in our area. If you would like to learn more about what I can offer you in getting your home sold and meeting your goals, I encourage you to call, text, or email me anytime.