Get to know your prospective buyers...

About FSBO Buyers

The potential buyers for a "by owner" house are easily identified. They will usually not be working with an Realtor and are early in the home hunting process. Most buyers go through a number of stages before the purchase. 1.) First they consider buying and start to browse the free home guide books and Realtor.com. 2.) Then they drive around on weekends to get a feel for neighborhoods and house styles. 3.) The next step is to enlist the help of a Realtor to find specific homes and show them properties. During this last stage is when they meet with a mortgage lender to determine their ability to buy a home and determine their time frame for the purchase.

The first and best potential buyer is the serious buyer that has not yet contracted with a Realtor. The "by owner" must catch their prospect at the looking stages before the buyer contracts with a Realtor (Buyer's Agent). After they secure an agent, there is little chance the Realtor will show "by owner" homes and the prospect will be in a buyer's agency contract obligating a 3.5% commission to that agent even if they buy direct "by owner"

The next best prospect is the one that will not use an agent at all. The problem here is that most serious buyers retain a Realtor to help them. (wouldn't you?) These "buyers" are usually bargain hunters looking for a deal and expect to buy below market and want the house price discounted additionally to reflect the value of the commission you are not paying (usually 7%). Remember that logic dictates that if a house identical to yours sell with an Realtor for $200,000 then your house without an Realtor should sell for $186,000 ($200,000 - $14,000) because you are not paying the 7% listing/selling commission. This is how many "by owner" buyers think, that is why they are not using a Realtor. If a house is FSBO and marketed at the SAME PRICE as a comparable listed property, most buyers figure why not have the services of the Realtor to show them comparable properties, negotiate and take on some of the liability since they are not saving anything.

Again, the best prospect is the one you can catch that is serious about buying at market price and has not yet secured a Realtor. I find this is a 2 week window on average. That is why you must have a lot of advertising and signage to catch their eye. When I look for properties as a buyer's agent, I look primarily in the MLS system. All homes listed with agents are in the MLS; looking in the paper or home guides is redundant for a Realtor.

As you can see, selling a house can be a complicated process. I would be glad to try to answer any questions you have about selling your home, just give me a call. Please utilize the resources on my website to help you in selling your house. If you do decide to consider a Realtor to help you sell your house I hope you will give me the chance to show you how I can sell your house quickly and put more cash in you pocket then if you sold it "by owner" even with commissions.

WARNING! Beware of the pitfalls of selling "by owner". See all my resources to help you do it by yourself BEFORE you decide to sell.

 

This information is courtesy of Tom Schroth RE/MAX Communities, Atlanta, GA