The time has come for you to sell your home. Will you decide to list as FSBO, or will you hire a real estate agent? Regardless of the choice you make, working with a real estate attorney can help ensure you have everything under control.
Did you know that in 2018, 8% of home sales were listed as “for sale by owner?” If that is the route you choose to take, there are a couple things you can do to ensure a successful sale of your home. We’ve compiled a list of five tips to keep in mind when listing your home as FSBO.
Here are 5 tips to listing your home as a FSBO:
- List a Competitive Price
- Hire a Real Estate Photographer
- List Your Home on the MLS
- Competitive Buyer's Agent Commission
- Connect With Buyers and Sellers Via Zillow
List a Competitive Price
Are you looking to sell your home fast or pull in multiple offers? When listing as “for sale by owner,” there’s a proper way to make the most out of your sale. As a seller, you may tend to think your listing price and sale price will equate to the same cost. However, oftentimes this is not the case.
When listing your home online or in the press, try listing a price about 4-5% lower than what you would hope it to sell for. Say your home has been appraised for $500,000, the price you hope to make on the sale, try listing your home at about $475,000 to beat out the competition. As the purpose of the listing price is to drive traffic to your home, this does not mean the sale price will not be higher. However, if you attempt to sell by listing your home at the appraised value, you may not receive as much of a payout from your home transaction.
Hire a Real Estate Photographer
It’s important to think about the old cliche “a picture is worth a thousand words” when listing your home as FSBO. As someone who is not a real estate professional, you’ll want to showcase your home in the best possible light to attract multiple offers.
In today’s digital age, the visual appeal of your home is imperative to it’s sellability. Taking high-quality photos that follow the guidelines of platforms such as Zillow.com, Realtor.com, or Redfin.com, can be challenging. When you outsource and hire a professional real estate photographer, this tricky stepping stone to selling your home is taken off your plate.
Pro Tip: A good professional will know how to bring out the features in your home and hide the downsides, bringing more online traffic to your listing and more foot traffic to your property.
List your home as a FSBO and get a free consultation with Rochford Real Estate Law Title.
List Your Home on the MLS
Remember to list your FSBO home on a local MLS channel. An MLS or multiple listing service, is a private offer of cooperation and compensation by listing brokers to other real estate brokers. When you list your home on a local MLS, your property information can be shared with brokers who want to cooperate in the sale of your home. Sellers can benefit by increased exposure to their property, while buyers can obtain information about all listed properties through brokers.
Benefits to a MLS for a home listed as FSBO:
- Get on the list of agents who set up auto notification emails for their buyers when new homes show up on the MLS.
- Most local MLS channels distribute to Zillow, Trulia, Redfin, and several other home buy/sell platforms.
- A MLS allows you to offer the buyer’s agent a commission, setting you apart from other FSBO sellers.
Competitive Buyer's Agent Commission
As you list your home as a FSBO, it’s important for you to understand that most inquiries about your property will be from buyers represented by agents. Similar to listing on your local MLS, buyers agents may reach out to you to facilitate a sale. If you don’t offer a fair commission to the buyer’s agent, the agent may decide to skip out on showing your property. This is simply due to the fact that they might be compensated adequately elsewhere.
If you’re unsure of where to begin in terms of offering an agent commission, there are many tools to help you pick the right rate based on your geographic location and state guidelines. Even as a FSBO seller, any agents incorporated into your home transaction should be adequately compensated.
Connect with Buyers and Sellers via Zillow
When it comes to listing your property as “for sale by owner,” an important tool to utilize is the online platform called Zillow. If you’re unfamiliar with Zillow, it is an easy to use platform designed to connect buyers and sellers digitally. Provide buyers with high-quality images and prime information about your property to increase your offers.
To avoid missing out on offer opportunities on Zillow, be sure to include your contact information at the bottom of your property details description. While in the past, FSBO listings could include contact information through the platform alone, there have been issues connecting buyers to these singular sellers. However, don’t let this little snag get in the way of you listing your home! At the end of your property description, add this statement: Can’t wait to go check out this home? Call or text (615) xxx-xxxx or email firstname.lastname@example.org.
If you’re in need of a real estate law attorney, contact Rochford Real Estate Law Title today!