By John Voket, RISMedia Consumer Confidant
Should I FSBO? The practice of a homeowner with no previous experience selling one’s own property is not uncommon. But whether to do it or not is a subject of intense debate.
Florida real estate expert, Riley Smith, recently blogged that you could not pick a worse time to list on your own. While inventory is low and well-priced homes are seeing multiple offer situations, Smith has never seen a more difficult time to get to the closing table than right now.
He says pitfalls from new insurance requirements as well as appraisal values and lending guidelines have real potential to blow up a FSBO deal.
He went so far as to highlight the fact that the Wall Street Journal discovered Colby Sambrotto, founder of ForSaleByOwner.com, hired a realtor to sell his New York apartment because he was unable to get the job done on his own.
In Texas, real estate professional Loreena Yeo, makes the point that FSBOs residing in non-disclosure states may be stymied by a lack of accurate information to accurately value their property.
Yeo also blogged that some FSBOs may be more successful than others simply because of location. If a home is located on a busy street where many people constantly drive by, they are more inclined to see and talk about a house that is for sale.
She also stresses the Miranda warning: ‘You have the right to remain silent. Anything you say can and will be used against you in the court of law.’
Yeo warns that a regular home seller without much experience, more often times, you will volunteer information even without realizing it. So watch what you say – and to whom – or you might talk your way into some legal entanglements that will cost a lot more to untangle.
Or, you might talk your way out of thousands of dollars in ‘commissions’ – to yourself! In the next segment, we’ll look at some ideas that could help FSBOs be more successful.