Farmington Hills Real Estate and Events talk Michigan

If you are thinking of selling your home yourself here are some thing to think about.  Selling a home takes time but I will admit it can be done.  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 5 reasons FSBO's are trying to sell right now in the metro Detroit real estate market.

1.  For Sale by Owners do not want to pay commission or Pay a commission they think is high:  80%.  For sale by owners want to save money.  In this market some of them are very close to what they owe.  They feel they have to sell themselves.  But according to research 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 the For Sale by Owner doesn't have the up to date knowledge that Real Estate agents do!  I have seen these estimates from Zillow and Cyberhomes off by $40,000 
•  The Metro Detroit home buyer thinks they should be getting 6% off the Metro Detroit home price when they are buying from a FSBO because they think the seller 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?    You don't want to use an agent that carries errors and omissions insurance.   All agents are not alike.  There are many very good Metro Detroit 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 Metro Detroit 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 Metro Detroit realtor or Michigan real estate agent 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 Metro Detroit market to sell there home.  You have to react quick to the 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.

The  bottom line is that the media has hyped that there are great deals out there.  That you can offer way below list price.  Well take it from a metro Detroit real estate agent if you price your home right many homes right now are selling close to list price.  The media is a little off on what is happening in the Metro Detroit real estate market.

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.