Why selling your home on your own generally doesn’t succeed – reason #1
I am a Realtor. I sell real estate. I can certainly understand a home seller’s reasons for wanting to save a commission expense. We all like to save money especially in these challenging economic times.
While commission rates are negotiable, in NW Wisconsin you are likely to pay 6-7% commission on the sale of your property. On a $200,000 home a 6% commission is $12,000. That’s a chunk of change.
Selling a for sale by owner (FSBO) is not a simple task and that is why most home owners hire a Realtor to get the job done. Nationally the success rate of a FSBO is very low. More than 80% of all FSBOs end up hiring a Realtor after unsuccessfully trying to sell on their own.
There are many reasons why selling For Sale by Owner (FSBO) is a difficult task to pull off.
#1 – The wrong listing price
Whether selling FSBO or with a Realtor, pricing is the first and most critical factor. If your home is not priced correctly you are not likely to sell in a challenging real estate market. More than 75% of marketing a home is about the price. Overpricing a home makes it almost impossible to sell.
Choosing the right price involves thorough research of similar properties that have recently sold in the local area and using the data to correctly set the selling price. The data may not be easy to find in more rural geographic areas.
Sometimes owners may have made recent improvements to their home, and therefore feel justified in setting a higher price. Unfortunately, most home improvement projects do not have a high return. Even improvements like replacing a roof or a septic system will not have much of a payback on the investment.
If you are thinking of selling your home, I would be happy to provide a free, no obligation comparative market analysis for your local area. Jean Hedren, Edina Realty, NW Wisconsin.