FSBO homes are often a good deal for both buyers and sellers. By eliminating the middleman, sellers can attract greater attention to their property, and retain greater control over the sales process. The following tips can help "close the deal" when selling your home FSBO.
1. Don't forget the closing costs
Many FSBO deals fall apart at the last minute because the buyer has failed to calculate the closing costs on the home. Luckily, this is a problem that can be easily corrected. By providing your potential buyers with an outline of all closing costs, you can reduce the shock of these extra fees, and ensure that your buyer will not "bail" on you at the last minute.
Any mortgage broker can provide you with a list of estimated settlement and closing costs to show your buyers. Don't be afraid that you will scare off buyers by making them aware of the closing costs upfront. It is far better to let them know the terms of the sale now, then to spend weeks or months preparing a sale that falls through.
2. Don't negotiate on price -- negotiate on terms
The most common mistake to make when selling a home FSBO is to make the negotiation all about price. Instead of negotiating on dollar amounts, consider negotiating on the terms of the sale, such as offering to pay a percentage of the closing costs for the buyer.
Many times, when buyers have only a limited amount of cash available, they will choose to pay a higher overall price for the home if the seller will absorb some or all of the closing costs. As a seller, this can save you a great deal of money in the long-term.
3. Have your home professionally appraised
Another mistake that FSBO home sellers often make is to initially price their home too high, expecting that they can gradually lower the price if it does not generate significant interest. The problem with this strategy is twofold:
First, a new home on the market will always receive the most attention. With this in mind, it is important to "strike while the iron is hot," and ensure that your property is correctly priced to begin with. Second, FSBO homebuyers tend to check out properties only once. It is very unlikely that an interested buyer who thinks your price is a bit too high will take the time to revisit your home later on.
By having your home professionally appraised, you can ensure that it is correctly priced and that you make the best possible first impression on the market. Remember, the longer it sets unsold, in general, the less attractive your FSBO home will be to potential buyers.
Read more - Buying FSBO Home - Quick FSBO Tips - How to Deal with Low-Ball Offers - How to Get a Higher Appraisal
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