Selling your Charleston home FSBO
FSBO is a good option for homeowners but it’s definitely not for everyone. The National Association of Realtors says about 13 percent of homes are sold by owners without agents. If your heart set on going FSBO it can work - sometimes.
Just an FYI, although it is unethical for agents to exclude FSBOs, but it happens often. Why? For an agent, an FSBO ...
is more work (much more usually) often requires the agent to spend extra time educating FSBO sellers during negotiations and during the pending period is often less money
has a
lower probability of closing (many of the red flags are caught by listing agents in advance and corrected that might otherwise prevent/delay a closing) is difficult to compare in suitability with other properties due to lack of data requires a greater need for follow ups with legal issues, financing issues, repairs and more is like doing the job of 2 agents rather than just one agent ... with a lower chance of getting paid and a big chance of getting paid less than with a listed home. NOTE: If the buyer has an agent, that agent is working for the buyer's best interests - not for yours - even if you pay the a commission (duel agency / designated agency the exceptions).
Agents "control" about 88% of buyers (most buyers have an agent these days). Buyer's agents are free (unless the FSBO refuses to pay a commission) - so why not get representation? By going FSBO, the reality is that you are going to be avoided by most agents - fair and ethical or not. It is just the way it is.
By the way, if you say “agents welcome” in your ads, you’ll get a lot more traffic from buyers working with agents. You may want to consider offering more than what agents usually get.
There is no set commission but many listing agents charge 6%. If so, an agent's commission of at least 3% is probably a good idea. Even then, you are asking a lot of the buyer's agent!
How to do an FSBO
- determine the fair market value of your home
- get access to comparables of sold property in your area
- price the house right - not too high, not too low
-
advertise, Internet, local publications etc.
buy an internet domain name for your house, set up a website, and advertise it on your sign buy pre-made signs or have them made to your specifications (signs must look professional)
have your attorney get all forms you will need
have attorney review your marketing plan for legal issues such as fair federal housing law violations
be available to answer the door at unusual hours to the public/strangers
answer your telephone for all incoming queries
contact mortgage brokers/lenders/ banks to assist potential buyer
be sure to only show your home only to qualified potential buyers by asking for their letter of pre approval for financing if needed (be aware that some buyers will need to sell their property before they can 'close')
take many pictures of your property
conduct an Open House for Agents
conduct an Open House for the public, providing refreshments
schedule an open house every weekend. Try not to get too discouraged when you don’t get many people coming through. You’ll probably find that most people attending open houses are nosy neighbors or curious folks just driving by
be available every weekend from 9:00 AM -7:00 PM
buy and use a lock box - very important
sellers should not walk around with buyers - let them explore your home and imagine it is theirs
do not discuss red flag issues that might sink the deal yet disclose all material issues as required by law
put away valuables
check sign ordinances - put out lots of signs, directional signs, open house etc.
Put out a brochure box and prepare to make tons of copies
send flyers, post cards, other print material to real estate companies
send post cards to your neighbors, friends, acquaintances
leave flyers at grocery stores, etc.
make telephone calls to the number of interested buyers that you have dealt with in the past
have your real estate attorney 'draw up' all of the required documents for the offer/acceptance/counter offers, and final contract.
ensure you liability insurance is up to date
provide a seller’s disclosure as required by SC state law
be aware of everything that you will need to do once you do get an accepted contract - things move fast