The phone rings at 6:00 PM while you and the family are enjoying dinner. You hurry to the phone because you are selling your home For Sale By Owner (“FSBO” for short) and you don’t want miss a possible buyer."Hello, my name is JOHN S. AJERK with RUDE REALTY and I saw you were selling your home yourself. What are you, nuts? You’re not smart enough to sell your home without a real estate agent, so you might as well list with me and stop wasting your time because you're going fail anyway!”
Okay, well they don’t really say that, but it sure does come off like that, doesn’t it? Unfortunately, countless real estate agents sound like this, all without knowing anything about you or caring, for that matter. It’s as if they feel you need their permission to sell your own home.
Wrong!
Let’s face it, some people have the necessary patience, temperament, and ability to sell a home. If you can sell your home yourself, why wouldn’t you do so and save the thousands you would pay in real estate brokerage fees? And if you discover the job is not something you want to add to your already hectic daily life, you can always call in a professional real estate agent—one who hasn’t insulted you at dinnertime—to handle the job for you.
Just remember, selling a home FSBO is not the right decision for everyone. In fact, it can be frustrating if you don’t prepare yourself for the arduous task ahead. Statistically, over 95% of all real estate sales involve a real estate agent. Now, I’m not joining the chorus of all of those Joe Schmoes out there. But being prepared will increase your chances of being in the Fortunate 5%, as I’d like to call it.
For example, in the areas I service, here are just a few important issues you would need to be aware of:
• What local, state, and federal laws and regulations are you required to follow?
• Are you subject to a real estate withholding tax? For example: California may withhold 3 1/3% at the closing under certain circumstances. Your tax consultant is the only one qualified to advise you in this matter.
• What other tax consequences are important to plan for in the sale of your property?
• What contracts and other documents are required to best protect you and ensure you are in compliance with the law?
• What disclosures are you required to provide, under what circumstances, and when?
• What new real estate laws have been passed and how will they affect you?
• How will you know if the buyer is really qualified to buy your property?
• What’s the best way to market your home for the highest possible price?
• How do you determine what costs you are required to pay and what costs are unnecessary?
These are just a few important issues you must be aware of. In truth, there could be at least 200 items you need to be knowledgeable about if you are going to be a member of that Fortunate 5%.
Selling your home yourself can obviously add significantly to your bottom line. But it can also be your biggest nightmare if you aren’t adequately prepared. Don’t take this job lightly, no matter what anyone tells you.
