FSBOs sell homes all the time.  It works sometimes, and sometimes it does not.
Detroit Real Estate, Michigan Homes for sale, Michigan Real estate


So let's look at why FSBOS sell their homes themselves

For Sale by owner should you or shouldn't you

 Here are some reasons to rethink selling your home by yourself.  In this Metro Detroit real estate market it is extremely important to grab every buyer lead that is out there.  It is important to have priced your home right.  And most importantly to have the knowledge to negotiate the deal to close and hold the deal together when there are issues.   These are the top reasons FSBO's sell themselves and why I think they shouldn't.

1.  For Sale by Owners do not want to pay commission or Pay a commission they think is high:  80%.  They want to save money, but most FSBOs sell for less than comparable homes according to market research.  Why?  Here are 3 reason why FSBOS sell for less:

• Because they didn't have all the Local Metro Detroit real estate market data available to find out what there house was worth.  A Realtor or real estate agent has access to the MLS and public records at his fingertips.  A homeowner doesn't.  They can go to Zillow or CyberHomes to get an estimate, but they For Sale by Owner doesn't have the up to date knowledge that Real Estate agents do!
•  The Michigan home buyer thinks they should be getting 6% off the Metro Detroit home price because the person is saving 6% on realtor commissions.  
• The seller is not used to negotiating a real estate sale.  Those are some of the reason why FSBOS sell for less than a home listed by a real estate agent.  Many times FSBO's take longer to sell

2.  Don´t want to deal with a real estate agent:  6%  At some point in time the FSBO had a bad experience with a realtor.  This is a dumb reason- you don't want to deal with an experienced person in the field of knowledge?  Think about this....You don't want to deal with somebody licensed in the field?  You don't want somebody that has to take 6 hours of continuing education a year?  You don't want to use somebody that has many other realtors to ask questions to, a large reference support team that has years of experience for those odd situations?  You don't want somebody that is being exposed to the local market conditions and real estate 8 hours a day, 5 days a week?  You would rather use a novice?  You don't want a person that is licensed in the field and could lose that licence if they do something wrong?   All agents are not alike.  There are many great Michigan real estate agents out there.

3.  Selling to neighbor, friend, relative, someone you know:  9% This is the one time I think you should be a FSBO.  If you have the deal all set up, you and the buyer know what your house is worth and you have the ability to get the legal paperwork right.  But please consult with a local title company, and an attorney to make sure the paperwork is right.

4.  An agent was unable to sell your home:  2%  So one Michigan Realtor or real estate agent could not sell your Michigan home.  You might want to try a different agent with a different marketing plan.  The MLS and the internet sells homes.  You need more than a sign out front usually to sell a home.  You need to answer the phone calls immediately when somebody call on the house.  This is one area that I think For Sale by Owners lack in.  I usually get a call back when I call on a FSBO 2 days - 7 days later.  By then my buyers have moved on.  Real estate agents have office staff to set up showings, floor agents or themselves to answer questions about the property usually within a few hours.

5.  Buyers contact you directly: 2%  Sure! You get somebody that wants to buy your house.  What is it worth?  Either you are going to sell it too low, or you might get lucky and sell it high.  Think about it.  If you were going to offer to buy a home that wasn't listed wouldn't you offer low and try to get it at a bargain.   Either the buyer or the seller is going to lose here.  Again most of my experiences with For Sale by Owners is that they had the price wrong.  They did not have a Michigan realtor or Michigan real estate bringing them the latest market comparables that sold in their neighborhood and city

For sale by owners ( FSBOS) do not have the internet  exposure needed in this Michigan Buyers market to sell there home.  You have to react quick to the few buyers out there.  You have to have your home priced right with the falling Metro Detroit real estate market or else your home will sit even longer and you will be chasing the market down longer.

If you are trying to sell by owner in the Metro Detroit area and can't give me a call on my cell at 313-310-9855 or email me at info@RussRavary.com to see if I can help you sell your home. 

So let's look at all the facts

1.  Do you make more money by selling your home yourself?

No.  In 2004, the median price of FSBO-sold homes was 15.4% lower, when compared to the price of agent-sold homes.  Thus, people who want to save money by not having an agent are actually losing money, not saving it.   So if  the median FSBO price was 15.4% lower - 6% realtors commission.  FSBO got 9.4% lower. 

That is not even including the costs of the signs, flyers, and ads.  An ad costs $80  - $100 in a newspaper, magagzine ads are over $200 a month. And to put them on the internet on FSBO sites cost money.  Title companies charge a FSBO owner $50-$100 more to do the paperwork. 

2.  Do you really know all that you are going to have to do and what may happen to you? 

a.  Buyers are more inclined to sue sellers if something was not disclosed beforehand.  Something that you may think is nothing, may be the law.  A real estate agent is experienced in these things and has a broker and other real estate agents to answer questions and confirm course of direction. 

c.  It requires a tremendous amount of time to sell a home yourself; you are almost always on call.  I love this one....Almost every FSBO marketing companies lists this as a selling point to prospective FSBOs.... you no longer have to have your house ready to sell or be at the call of a real estate agent.
You might as well put in big letters to "BUYER I'M BUSY, SO YOU HAVE TO WAIT"... DUMB SELLER.   "I will get back to you sometime"  You have to be ready to show a house when somebody wants to look at it.  The buyer that gets turned down to see your house because you are busy is on a schedule.  In my experience most of those homes do not get seen becuase of time constraints or because they already made a decision.  You should be ready to show your home at anytime if you are serious in selling.  I had one agent the called me from in front of one of my listings.  He had clients in the car and they wanted to see the house.  I called the seller.  He was mad that he didn't have time to make the bed and mad at me for giving him such hort notice.  But he wasn't so mad the next day when they bought the house!!!!   

d.  Great property risk is involved.  People who are skilled at theft during home showings and open houses may steal your goods from your home.   It is different with real estate people.   When somebody comes to us, we set up a search in their parameters.  We have their email, their phone number, we get to know them.  Theives target FSBOS.  A group, or couple will come in.  One person will distract you while the other one is stealing them.  Sure they signed in with a fake name, or said they didn't want to be bother.

e.  Great personal bodily risk is involved.  You will be routinely letting strangers come in contact with you and your family members, out of sight of the street, and capable of locking you inside your own home and taking over.  Is that really worth it?  Even with real estate agents we have agents robbed, mugged, and attempted to be raped inside homes.  And we are taking pre cautions all the time.  Women agents  park on the street not to be blocked in,  they follow the customer around so as not to be blocked in a room.  They have people that check on them.  

How do you know who the person is that is coming into your home?  Are they a child predator, a thief, a rapist?