A generation ago, the real estate model looked very different, where most people were dependent on real estate agents to sell or rent their property. But with the availability of online resources, things are changing quickly.
If you’re still trying to decide if For Sale By Owner (FSBO) or For Rent By Owner (FRBO) is right for you, you’ve probably read a lot of “facts” and myths about the industry. Some myths may be true, while others are meant to discourage you completely. Read on to discover the most common myths and why they don’t hold any power over you.
Myth #1: “I don’t have time to sell my home!”
Thanks to new technologies, the FSBO or FRBO process doesn’t have to take up too much of your personal time. Since the beginning of the housing recovery in 2012, the time it takes to sell a house on the market has shortened considerably. According to the National Association of Realtors, the median amount of days a property spent on the market in September 2015 was only 49. And that’s national, so if you check the same statistic by city, you may find that some numbers are lower. For instance, In Washington DC, the median time on the market was 14 days!
Yes, selling does take time and effort. But let’s not forget, if you sign on with a realtor, you’re not their only client. The average real estate agent juggles many clients, schedules, showings, and listings as well as yours. Instead of waiting for them to complete tasks for you, do them on your terms. FSBO or FRBO means you ultimately have more control to get things done. Fit selling and renting into your schedule, not the other way around.
Myth #2: “Real estate agents can get you more money.”
Actually, recent studies have proven the opposite. Independent research from Stanford University and Northwestern University both concluded homes sold FSBO went for an average of 4-11% more than if there were an agent involved!
Worried you won’t be able to price your home correctly? Set your own FSBO price by searching the prices of similar homes online (after all, that’s exactly what a realtor does!) A local appraiser will also give you a great estimate if you prefer to get an expert’s opinion. As for negotiation, there’s plenty of tactics you can use to speak directly with a buyer or their agent to make sure you get the most out of your house.
Beycome’s properties have a Sale-to-List Ratio of 96.5%, which is the ratio of a property’s closing price to its listing price. To get this number, simply divide what the buyer or renter paid for the home with what the homeowner initially asked for. If the percentage is above 100%, the property sold for more than the ask. If the sale-to-list percentage is less than 100%, the property sold for less than asking.
For example, a 98.5% sale-to-list ratio on a $100,000 home means that the home closed for $98,500!
Myth #3: “I need special skills to sell my home.”
You’re more empowered than you realize. Everything you need to know about FSBO or FRBO can be learned online or delegated to a knowledgeable party. Here are a few examples:
- Legal contracts and disclosures: A trusted lawyer can navigate this for you (and for less than the cost of a realtor). Many agents will outsource this work to an attorney anyway. When you list through beycome, we provide this for free!
- Finding the right “connections”: Nine out of 10 home buyers use the internet to search for their new home. As long as you use a professional FSBO or FRBO listing service, the right buyers should be able to find you, no problem.
- Marketing: A realtor won’t necessarily go above and beyond to sell your home. For instance, will a realtor make custom print graphics and banners for you? Beycome offers a ton of marketing resources and tools, so you can make them yourself in no time!
Myth #4: “I need a realtor to schedule showings!”
Actually, scheduling becomes more difficult with a realtor involved. With them in the mix, you now need to accommodate three parties for a single showing. Instead, buyers and sellers ought to welcome the chance to communicate directly with each other. Buyers are likely to ask questions that only you are able to answer anyway. Without a middleman, they get answers faster.
Beycome offers an open house scheduler and calendar so you can set up appointments without any problems.
Myth #5: “I need someone to advertise for me.”
If you’re unfamiliar with the MLS listing process, it’s actually pretty easy to set up. An FSBO or FRBO site will list your home without requiring a large commission of the sale (at beycome, Florida MLS listings start at just $9!). What are the components of a good listing?
- An eye-catching heading (ex: “Townhouse With Great Curb Appeal”)
- Photos of the property (ex: exterior and interior)
- Home features (ex: “furnished basement”)
- About the location (ex: “ten minutes away from the downtown area”)
- Other details (ex: square footage, number of bedrooms and bathrooms)
- The listing price (ex: $250,000)
Don’t think a realtor has any special writing skills, either. You know how to make your house, condo, or apartment sound unique and desirable. Just talk about the best your property has to offer and buyers are sure to be interested.
Myth #6: “Only real estate agents can screen potential buyers.”
You may think that realtors have some secret process for filtering through buyers, but that’s not the case. Before inviting someone into your home for an FSBO or FRBO showing, ask them their name, phone number, address, and a copy of their driver’s license. You can also require that any potential buyer must give you a pre-approval letter from their lender or financial institution. This letter is key because it means they have already gone through the loan application process and they’re serious about buying.
Keep a detailed log of everyone you speak with in case you need to track them down again and make your showings appointment-only to keep yourself and your personal property safe. And if you don’t feel comfortable screening potential buyers on your own, enlist the help of a friend or family member who can attend showings with you.
beycome’s $9 full package offers (3) applicant screening reports for potential buyers and sellers.