For Sale by Owner

Think you have what it takes?

In recent months, we’ve seen an increase in the number of FSBO (For Sale By Owner) home sales being conducted by individual sellers and buyers in the Kenai & Soldotna area on the Kenai Peninsula. This may be a result of increased knowledge brought about by information on the Internet. It may, even, be that there are more sellers who have bought and sold their own homes before and are saying, “I know what I’m doing", or it may simply be a result of the low inventory level of available homes on the market.

Whatever the reason, the seller will be thinking, “I’ll just sell it myself and save the commission.” They think that all they have to do is put up a sign, buy one or two ads in the newspaper, and they’ll save a “bunch of money”. Sometimes buyers also will utilize this approach and attempt to find a way to buy the home direct.

On the surface, it may appear to be a good plan. However, both buyers and sellers, beware. Often, it’s a plan filled with pitfalls. Following is a list of some of the pitfalls you could encounter if you don’t use a Real Estate Professional.

• Do you know how to get the maximum price and still sell your home in the desired or required time frame?
• Do you know the true “market value” of your home?
• Do you want to open your home to “lookers” or to qualified buyers? The real estate professional will have already screened them for you.
• Will the buyer be open and honest with you about their financial status or will you waste a great deal of time with an unqualified buyer?
• Will you be able to get away from your job to show your home at the potential buyer’s convenience?
• You may accept an insincere offer and then spend months, perhaps in litigation, to free your property in order to put it on the market once more.
• The agent can ensure that you are legally protected in the transaction.
• You may find that you and the buyer have a personality conflict, which prevents both of you from getting what you want.

1. A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.
2. Real estate has a language of its own. If you don’t know a CMA from a HUD, then know why it's important to work with someone who does.
3. REALTORS^Ò have done it before! Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. Even if you’ve done it before, laws and regulations change. That’s why having an expert on your side is critical.
4. REALTORS^Ò provide objectivity. Since a home often symbolizes family, rest, and security, selling or buying is often a very emotional undertaking. For most people a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.
5. REALTORS^Ò are members of the NATIONAL ASSOCIATION OF REALTORS^Ò, a trade organization of more than 1 million members nationwide. REALTORS^Ò subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity.

According to the 2006 National Association of Realtors Profile of Home Buyers & Sellers, the typical FSBO home sold for $187,200, compared to $247,000 for a licensee-assisted home, 32 percent less! This means that if FSBO’s pay a 6% commission, they will only realize $198,500!  You could be missing out on almost $50,000 dollars that could of gone in your pocket!