| For Sale by Owner (FSBO)
-- Do you want to sell your Kingston home without a real estate
broker? Doing so can save you a commission but requires that
you devote time and energy not only to marketing and showing
the house but also to learning and following the legal rules
controlling sales of real estate in your area.
FSBO Rationale
In most cases, the seller attempts to sell their property
on their own to avoid paying the real estate agent commission.
This commission is generally six percent of the selling price
of the home. Three percent goes to the agent that lists (sells)
the home and three percent goes to the agent that represents
the buyer.
While this rationale makes a lot of sense to the average
person, it can often be difficult to sell one's own Kingston
home. At first glance the statistics below make it seem that
one is likely to lose money by not using an agent. However
an informed and determined seller can make a fair return by
selling their own home.
History of FSBO
Long before the Internet, companies existed that assisted
property sellers in selling their homes "by owner".
These companies provided free computer matched listings and
monthly magazines full of "by owner" listings. Their
goal was to use aggressive advertising techniques to attract
buyers and provide them with lists of "by owner"
properties for sale.
As the Internet market grew, some of these "brick and
mortar" companies expanded to the Internet, while other
companies took advantage of the Internet by creating Internet
Only services.
According to Google, there are over 75 million matches on
the phrase "by owner".
Statistics
From the 2004 National Association of Realtors Profile of
Homebuyers and Sellers:
The basics:
- 30% of homeowners attempt to sell without an agent, two-thirds
are successful
- 24% of FSBOs stated that "getting the price right"
was the most difficult part of selling their home
- The typical FSBO homes sold for about 13% less than an
agent-assisted home sale. NOTE: This statement is misleading
due to the fact that FSBO sales are more common in markets
where homes are priced slightly below the national average.
Other statistics of note from the NAR:
- One third of all FSBO sales go to a prior acquaintance
- One in four FSBOs end up going back to an agent or broker.
Some statistics show that the number is more like 80% of
all FSBOs that end up getting an agent... usually after
6-8 weeks. This means FSBOs can be easily discouraged. NAR
stats show that the average home sale takes 3-4 months even
with an agent.
- If you go FSBO plan on many agents contacting you trying
to get your business. They will present you with much of
this same information.
Ideas for a Successful Kingston FSBO
- Determine the fair market value of your Kingston
home. Spend some money if you need to getting a
list of comparable sales in your area. A kind real estate
agent might provide a list for free. (They do it for buyers
and friends routinely.) Listing your property too high will
cause you to waste valuable time and get discouraged. Listing
it too low might get it sold, but you'll leave money on
the table.
- Make sure to tell everyone you know (your
sphere of influence) that you are selling your house. One
third of FSBO sales go to a prior acquaintance of the seller.
Do this AFTER determining the fair market value of your
home. At the very least you might try this approach for
a month or so prior to listing with an Agent, especially
if you are undecided.
- Advertise your home. Any good Kingston
real estate agent will spend money to sell your home in
newspapers, publications, websites, on the MLS/IDX etc.
An agent takes 6%. If you're saving that money, spend some
on advertising. Don't rely on just a yard sign.
- Be prepared to negotiate with a buyer's agent.
Possibly plan on offering them some commission. Make sure
you know the value of your home and plan on possibly tense
negotiation.
- Know the details:
- Details about your home (sq footage / lot sizes / restrictive
covenants)
- Understand contracts, offers, acceptance etc. Possibly
consult an attorney.
- Get all offers and counter offers in writing
- Make your prospective buyer get pre-qualified within
a week so that you don't lose valuable time finding out
they can't finance the deal.
- KingstonLiving.ca
KingstonLiving.ca is not a For Sale by Owner site. It's a
real state portal for Kingston and offers property advertising
to realtors, new home builders, FSBOs and more. Find out
why Realtors advertise on the site. You can get a sign package
through KingstonLiving.ca and exposure through KingstonKiosk.com
(over 150,000 Kingston visitors a month).
Kingston Living is Kingston's premier online
resource for everything about your home. We provide comprehensive
Kingston real estate and rental listings, for home buyers, home
owners, and renters. We also have a comprehensive home services
directory for your home shopping and renovation needs. Our
Kingston home directory consists of the following categories:
apartment
rentals, financing,
home
& garden, home
renovation, home
services, insurance,
lawyers,
moving
& relocation, and real
estate services.
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