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FSBO FAQs - for the Home Seller


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FSBO FAQs - for the Home Seller

  1. 1. NJ-FSBO – New Jersey’s Home Owners Informational Resource Exchange FSBO FAQs Q? Why many people try selling their home on their own? A. The single most common reason many attempt to sell their home on their own is to attempt to save themselves fees connected to sales commissions. Some individuals are successful but most are not, and may find their property ultimately selling for less they they would like. Q? What is a FSBO? A. A FSBO (For Sale By Owner) is when a homeowners chooses to sell theirhome or property without the assistance of a licensed real estate sales person. FSBOs canemploy marketing or online listing companies or market their own property but will not pay acommission and end up representing themselves with the help of a lawyer throughout the sale.Q? What is involved with a FSBO?A. Actually, a FSBO is an entrepreneurial effort requiring many different functions, from marketanalysis, documentation, title, advertising, signage and many other aspects, all of whichcombined, translate into the sale of a home or property in New Jersey.Q? What are the advantages to a FSBO?A. The big motivator to a FSBO is saving on commissions, which can translate into tens ofthousands of dollars. But typically most homes require a great deal of spade work in order toachieve the price point that is acceptable for both the owner and the buyer. Real estatemarkets are always fluid, especially in New Jersey, and consequently, will often require theknowledge that only a licensed real estate sales person has.Q? What are the disadvantages of a FSBO?A. Often a FSBO will:+ Remain on the market longer+ Sell for less+ Risk wasting time with unqualified buyers+ Require some significant hard costs to market+ Involve a great deal of time & work+ But the first two points are the biggest drawbacks, and that is why many FSBOs end upretaining a real estate sales professional.Some estimates place the difference between a FSBO and a listed property to be as much as20%.However, there are individuals who have successfully prepped, assessed and priced and soldtheir property. Each person has to weigh the pros and cons of a FSBO.Q? What should be the first step for a FSBO?A. Educate yourself. This not only involves learning about the entire process, but also speakwith someone that has sold their own property. An ounce of prevention is worth a pound ofcure, as the expression goes.
  2. 2. Next: put together a plan, which involves getting a property assessment and an analysis ofyour local market.What you can do is review some of the checklists that we have provided on www.nj-fsbo.comand match what you know with some of the suggestions that we offer.We also have a recommended professional network of FSBOs pro’s who have worked withFSBOs before. Check out our professional network tab.Q? When are the best times for a FSBO?A. Each season is different. As you can imagine, Spring is usually the most active sellingperiod. Summer and fall are also fairly active, but economic factors ALWAYS play into a sale:ALWAYS!There are also certain seasons in New Jersey which are stronger than others: for the JerseyShore, February through June are considered high season. For Northern Jersey, the Fall is agood time, especially if you are putting your condo or co-op on the market, as they tend toreflect an economic ‘halo’ if they are located close to New York City.Q? What are the single most important elements of a FSBO?A. Here are what we suggest:+ Get an attorney that is familiar with real estate law from your community.+ Get your home professionally assessed.+ Get a title search performed on your property.+ Hire a professional web agency who can properly list your property.+ Finish all renovations on your home before its first open house.NJ-FSBO is an online resource and arsenal specifically designed for the New Jersey home owner that islooking to market, improve, enhance and increase the value of their property whether the property is forsale or not. NJ-FSBO also includes a network of home-value specialists that are able to advise, assist orcontribute to the home’s appearance or sale. NJ-FSBO includes:  Online tools  Information  Marketing tools  An compilation of online sources to aid property valuation  A listing resource for promoting FSBO propertiesFor information please call 732 or email us Follow us on Twitter @NJFSBO.