If you’re thinking about selling your home yourself instead of hiring a real estate agent, I understand the appeal.
The thought usually goes something like this:
“Why should I pay someone to sell my house when I can do it myself?”
That’s a fair question.
Your home may be one of your largest financial assets, and wanting to keep as much of your equity as possible makes perfect sense.
And yes, homeowners absolutely can sell their own homes.
But before deciding to go For Sale By Owner or FSBO I think it’s important to understand what you’re actually taking on.
Selling a home involves much more than putting a sign in the yard, taking some pictures and finding someone willing to buy it.
The real question isn’t:
“Can I sell my house myself?”
It’s:
“What am I giving up and what am I taking responsibility for if I do sell it myself?”
Let’s talk about it.
It Starts With Pricing
One of the hardest things about selling your own home is determining what it’s actually worth.
Most homeowners know what they paid for their house.
They know how much money they’ve spent improving it.
They may know what a neighbor’s house sold for.
And they can certainly look at online home-value estimates.
But none of those things, by themselves, establish current market value.
When I’m evaluating a property, I’m looking at much more than an estimated price per square foot.
I’m looking at:
What’s recently sold.
What’s currently for sale.
What’s under contract.
What didn’t sell.
How long comparable homes have been on the market.
The condition of those homes compared with yours.
Features that make your property different.
And importantly:
What buyers are choosing right now.
Pricing too high can cause a property to sit on the market.
Pricing too low can potentially leave money on the table.
Getting the price right from the beginning matters.
Your House Is Personal to You. To a Buyer, It’s a Purchase.
This can be one of the hardest parts of selling your own home.
You remember bringing your children home from the hospital.
You remember every holiday.
You remember the kitchen renovation that nearly drove you crazy.
You remember every improvement you’ve made and every dollar you’ve spent.
A buyer doesn’t have those memories.
They’re comparing your home to every other property they could purchase.
That’s one of the benefits of having a real estate professional involved.
I can look at your home through the eyes of the market rather than through the eyes of the person who has lived there.
Sometimes I’ll tell a seller something they love adds value.
Sometimes I’ll tell them something they spent a lot of money on probably won’t return dollar-for-dollar when they sell.
And sometimes I’ll tell them not to spend money at all.
That’s why I always tell sellers:
Please let me see your house before you start making expensive improvements.
Marketing Is More Than Putting Your Home Online
A common assumption is that selling a home today is easy because buyers search online.
They do.
But simply appearing online isn’t the same thing as effectively marketing a property.
How a home is presented matters.
That can include:
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Pricing strategy
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Property preparation
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Photography
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Listing descriptions
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Online presentation
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Showing coordination
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Signage and other marketing
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Communicating property features accurately
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Responding to inquiries
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Following up after showings
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Evaluating market response
Good marketing isn’t simply about getting people to see your house.
It’s about presenting the property clearly and effectively so prospective buyers understand its features and value.
Are You Comfortable Letting Strangers Into Your Home?
This is something FSBO sellers don’t always think about in the beginning.
When someone contacts you and says:
“I’d like to see your house.”
Who are they?
Are they actually in a position to purchase?
Are they working with a real estate agent?
Have they spoken with a lender?
Are they simply curious?
And how will you handle the showing?
As a homeowner selling your own property, you’ll be responsible for coordinating inquiries, appointments and access to your home.
You’ll also be the person standing there while potential buyers evaluate your house.
That isn’t always ideal.
Buyers may be less comfortable discussing what they like, dislike or would change when the owner is standing nearby.
And as the seller, hearing those comments about your home isn’t always easy either.
An Interested Buyer Isn’t Necessarily a Qualified Buyer
Getting an offer is exciting.
But before celebrating, you need to understand the buyer’s ability to complete the purchase.
If they’re financing the property:
Have they been preapproved?
What type of financing are they using?
Is the property likely to meet the requirements of that loan program?
How much are they financing?
Are there contingencies?
Do they need to sell another property first?
The highest offer isn’t always the strongest offer.
Price matters.
But so do financing, contingencies, timing, requested concessions and the likelihood that the transaction will actually close.
An offer is a package of terms, not just a number.
Negotiating Your Own Home Can Get Emotional
Imagine a buyer offers considerably less than your asking price.
Then they ask you to pay some of their closing costs.
Then the inspection happens and they ask you to make repairs.
How are you going to feel?
Probably not thrilled.
That’s completely understandable.
But successful negotiation requires separating emotion from the business decision.
My job is to help you evaluate the offer based on the numbers and terms.
What is the buyer actually offering?
What are they asking you to pay?
What are the risks?
What are your estimated proceeds?
What alternatives do we have?
Where might there be room to negotiate?
Sometimes the answer is to counter.
Sometimes it may make sense to accept.
And sometimes the right response may be:
No.
Having someone between you and the buyer can make those conversations much easier.
The Contract Is Where Things Get Serious
Finding a buyer is only the beginning.
Once you agree on terms, you have a transaction to manage.
Real estate contracts involve deadlines, obligations and contingencies.
Depending on the transaction, there may be issues involving financing, inspections, appraisals, title, insurance, disclosures, repairs, deposits and closing requirements.
Missing a deadline or misunderstanding a contractual obligation can create problems.
A real estate agent isn’t a substitute for an attorney and doesn’t provide legal advice.
But an experienced agent understands the real estate transaction process and helps keep the many moving pieces organized from contract to closing.
Louisiana Sellers Have Disclosure Obligations
Selling your own home doesn’t eliminate your legal responsibilities as a seller.
Louisiana law has requirements concerning residential property disclosures in applicable transactions.
There can also be federal disclosure requirements in certain situations.
The exact requirements depend on the property and circumstances.
FSBO doesn’t mean “no paperwork.”
If anything, selling without professional representation means you need to be particularly careful about understanding what documents and disclosures may be required.
Then Comes the Home Inspection
The inspection is often where a transaction becomes more complicated.
The buyer may discover issues with the roof.
HVAC.
Plumbing.
Electrical systems.
Moisture.
Appliances.
Windows.
Drainage.
Or something neither you nor the buyer knew existed.
Now what?
The buyer may request repairs, a price adjustment, another concession or some other resolution depending on the contract.
That’s another negotiation.
And it happens after you’ve already mentally started planning your move.
An experienced real estate agent has been through these conversations before.
For you, this may be your home. For me, it’s also a transaction that needs to keep moving toward closing.
What Happens If the Appraisal Comes in Low?
If your buyer is financing the purchase, the lender may require an appraisal.
What happens if the appraisal comes in below the agreed upon purchase price?
That can create another decision point.
Depending on the contract and circumstances, the parties will need to determine how to proceed.
This is exactly why I tell sellers:
Getting an offer isn’t the finish line.
Getting to closing is.
What About Title Problems?
Sometimes issues don’t surface until you’re already under contract.
There could be an old lien.
An ownership issue.
A succession that wasn’t completed.
A prior mortgage that wasn’t properly released.
A boundary or survey issue.
Or another title problem.
Not every transaction has complications.
But when something does arise, knowing who needs to become involved and keeping the transaction moving matters.
That’s part of what you’re hiring an experienced professional to help coordinate.
But Doesn’t Selling FSBO Save Me Money?
It can reduce or eliminate certain brokerage compensation that you might otherwise agree to pay.
That’s one of the primary reasons homeowners consider selling on their own.
And I don’t think it’s fair to pretend otherwise.
But saving a fee isn’t the only number that matters.
You also need to consider:
What price will the property ultimately sell for?
What concessions will you agree to?
What repairs will you pay for?
How much time will you spend marketing and showing the property?
How will you evaluate offers and negotiate terms?
What professional services will you need to arrange separately?
What happens if the first contract doesn’t close?
The goal shouldn’t simply be to avoid an expense.
The goal should be to look at your overall outcome.
What Are You Actually Hiring an Agent to Do?
You’re not hiring me to put a sign in your yard.
You’re hiring me to help you:
Determine a market supported asking price.
Advise on steps to prepare the property for the market.
Decide which improvements may actually be worth making.
Market the home.
Manage inquiries and showings.
Evaluate offers.
Review the financial terms of those offers.
Negotiate.
Coordinate inspections.
Navigate repair requests.
Communicate with the buyer’s agent, lender, appraiser, inspectors, title professionals and other parties involved in the transaction.
Track deadlines.
Troubleshoot problems.
And help move the transaction from “For Sale” to “Sold.”
That’s considerably more than putting a listing online.
I’ve Been Doing This Since 2001
I’ve been licensed in real estate since 2001.
Over the years, I’ve worked with buyers and sellers, handled foreclosures and REO properties, contracted with banks to value properties, and dealt with transactions that went smoothly and transactions where unexpected problems appeared along the way.
Experience doesn’t mean every transaction will be perfect.
Real estate doesn’t work that way.
But experience does mean I’ve seen a lot.
And when something unexpected happens, I’m usually not seeing it for the first time.
That’s valuable when it’s your house and your money on the line.
Thinking About Selling FSBO? Talk to Me Before You Decide.
If you’re considering selling your Lafayette or Acadiana home yourself, I’m not going to tell you that you can’t.
You can.
But before you make the decision, let’s look at your property and the numbers.
I’ll give you my opinion of what the home may be worth in the current market.
We can talk about what I would recommend doing before listing and what I wouldn’t spend money on.
I’ll explain what I do for my sellers and what you’d be responsible for handling yourself if you choose the FSBO route.
Then you can make an informed decision.
There’s no obligation to list your home with me simply because we have the conversation.
You may still decide to sell it yourself.
But at least you’ll understand what you’re taking on before you put the sign in the yard.
And if you decide you’d rather have an experienced professional handle the process?
I’d be happy to go to work for you.
Melanie Nash, Broker/Owner
National Realty of Acadiana LLC
Lafayette, Louisiana
nationalrealtyacadiana.com
Local Expertise. Personal Service. Proven Results.
National Realty of Acadiana LLC provides equal professional service without regard to race, color, religion, sex, disability, familial status, national origin or any other characteristic protected by applicable law.
This article is for general informational purposes and is not legal, tax or financial advice. Real estate brokerage compensation and services are negotiable and may vary by brokerage, agent, transaction and agreement. Property disclosure requirements and contractual obligations depend on the property and circumstances. Consult an appropriate attorney, tax professional or other qualified professional regarding questions outside the scope of real estate brokerage services.