The Most Common Mistakes When Selling Your Home FSBO
As a Realtor who is comfortable working with FSBO clients, I am on the front lines to see the most common mistakes that our FSBO friends make when trying to sell their homes.
These days home values are low and there are plenty of homes for sale. Many Clearwater sellers feel that by saving the commission they’d have to pay to a realtor and selling their homes as “for sale by owner” is the way to go. It is an option, but it’s not as easy as you would think. Sellers make very common mistakes.
One of the most common mistakes that sellers make when they sell their property themselves is in how they price their home. Many sellers look at asking prices of homes that they think are comparable to theirs, or homes that they know or think are less valuable than theirs and set their price based on that asking price. This is a huge mistake. What someone ASKS for a property isn’t necessarily what they will GET for it. They would be better off looking at what actual sales prices were for comparable properties and set the price at a similar level.
Another common mistake is basing your price on what you purchased it for, and adding in any improvements. In other words, you bought the home for $150,000 and made improvements of $75,000 so you ask for $225,000. However, for every dollar you spend on improvements, it only adds 25 cents of value. So that price you set of $225,000 should actually only be $168,750, quite a bit lower! Your best bet is to look at comparable sales prices and not rely on the “value” of improvements. At the same time, be sure you check your home’s curb appeal. Spruce up the yard and de-clutter the inside.
Another common mistake is showing your home to anyone, which means that you are working with unqualified buyers. A Realtor would screen people interested in looking at your property to make sure they are only working with qualified buyers. They ask for a mortgage pre-approval and also ask if they would have a home to sell which would make your sale contingent on theirs. In today’s market, that could take months or longer.
If you have a home in Clearwater or Tampa that you are considering selling FSBO (For Sale By Owner), please feel free to give me a call for an unbiased opinion on how to get your house from selling to SOLD!