For Sale By Owner Quiz

Let's Play...

Who wants to be a For Sale By Owner!

For $100.00, which of the following is the best reason to try selling it yourself?

A. It's fun having strangers in your house
B. You enjoy buying ads
C. You like to dicker price with people
D. You like to bet on who's a "looker" and who's a real buyer
E. It's fun guessing whether buyers can afford your house
F. It's even more fun guessing whether buyers are actually qualified for loans
G. You can burn lots of calories by chewing fingernails and pacing back & forth, while worrying if the deal will actually go through
H. It's all worth it to save on commission

Final Answer?

Need to call a lifeline? I'm here to help. Let's talk.

FSBO Statistics

What Every For Sale By Owner Should Know

I know you are selling your home by yourself in order to save on commission. Permit me to share with you some things that every For Sale By Owner should know.

You Should Know…

• Sellers have been hiring real estate agents for over 200 years

• Why? Would you agree that in our society, nothing lasts that long unless it has value?

You Should Know…

• 70% of For Sale By Owner eventually list with a real estate agent

• Why? Because it can be a pain in the neck to try to sell it yourself
• And… Real estate agents get a higher price in less time

Why is all this true?

• Serious buyers only shop For Sale By Owners to save the commission

• The smallest selection of available properties are offered by FSBO's

• Approximately 15% of properties are listed as For Sale By Owner, as opposed to the 85% that are listed through a professional real estate agent. If you were a buyer seriously shopping for a home, wouldn't it be true that the only reason you would pass up 85% of available properties and only call on the smallest selection, namely the 15% that are For Sale By Owners, would be to save a commission? Right?
• But there is a commission and the buyers want to save it, so who has to pay it? You see, sellers generally pay a commission one way or the other, either to the real estate agent or directly to the buyer through their low offer. The difference is that the real estate agent does all the work for you.

• The more buyers that agents have access to, the more valuable your house is, and the quicker it will sell. How many prospective buyers do you currently have?

• It's difficult to separate the "lookers" from the buyers.

• The buyer is someone who is ready, willing, and able to purchase your home. The National Association of REALTORS® found in a study that only 4% of lookers are eventually ready, willing, and able to buy a house. You see, you can't tell by looking, who is a "looker" or buyer, nor can you tell by how they express themselves.
• Just because someone likes your home doesn't mean that are able to buy it.
• Just because they say they liked it doesn't mean they are willing to buy it.
• And just because they'd like to buy it doesn't mean they are ready to buy it.
• The only people I bring through your home are people who are qualified buyers.

• The longer it takes to sell your home by yourself, the more money you lose. Why?

• Mortgage rates can increase at any time, which might prevent buyers from affording your home. The low rates today won't last forever.
• When mortgage rates increase, existing home values tend to stabilize or even decline
• You might end up making two mortgage payments if you've already purchased another home
• If you find a buyer and then they don't qualify for the loan, you will have wasted valuable time and money. Real estate agents make the necessary calls and contact to ensure the buyer's financing is going smoothly.

• Marketing services from a REALTOR® mean greater exposure plus more prospective buyers plus increased value of your property

• Please visit my How We Market Your Home section to see the many marketing services I offer.
• Would you agree that there is value in having me market your home in numerous ways? And with additional marketing, isn't it likely that it will attract more buyers? Doesn't it make sense then that if I attract more buyers for you, you'll have a better chance of dealing with qualified buyers, getting more money for your home, and having fewer headaches?

• Letting me negotiate the deal will save you money!

• I am a trained negotiator. It is in your best interest to get the most money for your home and it is in my best interest to negotiate a higher price because I get paid in relation to the sales price.
• As a 3rd party negotiator, I won't let a buyer walk away because of an emotional reaction.
• I know about market values. If an interested buyer asked you to prove your home was worth it, would you be able to provide the market knowledge and statistics?
• I understand the needs of all parties. Because of this, you end up with what you want, the buyer ends up with what he/she wants, and, of course, I end up with what I want…satisfied clients.

This is a lot of information, so let's summarize:

Three facts:

• Sellers have been employing real estate agents for over 200 years.

• 70% of For Sale by Owners eventually ends up listing with a real estate agent.

• Real estate agents get a higher price in less time, because:

• Serious buyers only shop For Sale By Owners to save money
• The Law of Supply and Demand says that because agents have more prospective buyers, we sell a home for more money
• I am trained to separate Lookers from Buyers
• The longer it takes to sell, the more money the For Sale By Owner loses
• Because I have many marketing services, I can command a higher price for your home
• I am an expert at 3rd party negotiating

If I could help you sell your house and help you clear as much money as possible, would you list your house with me today?

The Federal Tax Code allows married taxpayers to exclude from capital gains taxes up to $500,000 in profits from selling a home (singles can exclude $250,000). In order to qualify for this exemption, you must prove that that the home has been your principal residence for at least two out of the last five years. The establishment of the home as a principal residence depends on the facts of each homeowner's circumstance. Here are two cases to consider.

Homeowner A has lived at 25 Pine Drive for 12 years. Although he stays at his vacation cottage in another town for up to three months out of each year (sometimes more), 25 Pine Drive is his principal residence, where he lives most of the time. When he sells the home, Homeowner A (filing as a single individual) can keep up to $250,000 in tax-free profit.

Homeowner B buys 108 Maple Street, intending to live there. He rents it out while waiting to sell his current home, where he has lived for six years. His principal residence sells at the end of two years. Homeowner B moves into his new house, lives there for three months, and then decides to travel. After a six-month trip, he regrets buying 108 Maple Street and sells it. Even though he has owned the house on Maple Street for over two years, it won't qualify as "owner-occupied", because he only lived in it for a few months. Thus Homeowner B is not eligible to claim the tax exemption when he sells the house on Maple Street.

Consult your tax advisor for advice about your particular circumstance.

	See All Tips In The "First Time Buyers" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

See the nation's top rated reports for Schools in Fayetteville, Springdale and Rogers >