My husband and I recently built a tiny cottage that we are wanting to sell. Rather than listing it with a real estate company, we opted to list it instead with a local Property by Owner franchise. Self listing our property would save us nearly $18,000 in real estate commissions.
Realtors call do it yourself listings FizBos, short for For Sale by Owner. FSBOs puts all the work of selling a home on the shoulders of the owner.
For home owners wanting to market their own properties, there’s one of two options available.
The first option is a complete do-it-yourself strategy in which the owner does all the work of selling his home himself. Self marketing a home means that you as an owner must purchase signs and sign holders, develop and print sales flyers, place ads, hold open houses, field calls, and answer questions. Self marketing also means drawing up your own sales contract and working with a real estate attorney to handle the legalities of selling a property.
What kind of costs can you expect with self marketing? To start with, professional looking “for sale” signs can cost around $100, directional signs are $25, and flyer holders are an additional $75. As far as running ads in the local newspaper, these can also get pretty pricey. Our local paper has several FSBO advertising options which range anywhere in price from $50 for an online ad to $350 for a 30 day package. This advertising is crucial to your marketing plan since it’s an attractive, well written ad that will bring a potential buyer to your home. The final major cost that a seller should anticipate is legal fees. Preparing a contract without having it checked by an attorney first is a dangerous practice. A real estate attorney charges on average, about $1000 to draw up a real estate contract. You may also consider seeking help from Surveys Hartlepool to find the best deals in the market. Surely, with all of the necessary and reliable information that they have, you can find the best deals with advantages of listing your home with a FSBO Service.
Using a FSBO or Property by Owner marketing service
The second option for a do it yourself marketing strategy is to list your home with a Property by Owner or another type of FSBO service. Listing with a FSBO service still puts the responsibility of selling the home on the owner, but comes with an incredible marketing package that vastly increases your exposure. FSBO companies have a huge assortment of signs and riders that can be borrowed, and will include your property listing in a monthly publication with a county wide distribution. Other services FSBO companies provide include free forms, professional photographs, writing your ad copy, free web listings with half a dozen color photographs of your home, and providing a 24 hour message service. Best of all, FSBO companies usually have special arrangements with local real estate attorneys who can draw up the sales contract for your home at a significantly reduced price.
FSBO companies have a wide range of price points with the basic listing beginning at $250 and capping out at $1800 for a super deluxe package. Most sellers find that a $1000 package will provide them with pretty much all they need to successfully market their homes.
Is one better than the other?
There is absolutely no arguing that a Property by Owner or other FBBO service can provide you with far more advertising and exposure than trying to do it all by yourself.
For people who have never sold a home before, some FSBO companies also have the advantage of providing it’s clientele with free real estate workshops. They can show you how to market your home to its best advantage, and provide you with referrals to local loan companies and appraisers. Having a real estate attorney at the home owner’s disposal is also a fabulous benefit.
The hidden costs of self marketing a property without using a FSBO service are the signs and the advertising, both which are critical to a successful marketing campaign. For a home owner looking to sell his own property without listing it with a real estate company, using a self service company is definitely the better alternative.