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For Sale By Owners Attack!

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By : Larry Knowles    99 or more times read
The real estate market is troubled to say the least. Property values have declined considerably.

In many areas, the property values have declined by 6% and more. This decline has created a buyer’s market. If you are a property owner and would like to sell, there are still ways to keep more of your equity. A seller can’t change the general real estate market. A seller can control how much the transaction costs. Usually the seller hires a realtor and signs an agreement to have their property listed with the agent for a specific time. Realtor compensations range, but the usual commission is 6%. The seller can also choose the services desired to help with the transaction.

When a seller decides to sell their property without using a realtor, the seller can list their property for 3% less than the property’s market value. With the average realtor commission at 6%, the seller actually ends up with 3% more than had they used a realtor, while the buyer spent 3% less. This win-win situation is the way to successfully fight the declining market.

Naturally, when a seller offers their property for 3% less, more buyers become interested. And after an accepted offer, the seller retains more of their hard earned equity, while the buyer has acquired less of a financial burden.

With the existence of the internet, it is much easier to market your house yourself. Many have created blogs and use internet listing services.

A seller should also use the MLS. The MLS is the local listing service used by realtors and buyers. There are many ways to get on the MLS without using a realtor. Many websites offer the seller to list on the MLS for a flat fee. There are also sites that will post your listing on the MLS for free.

When a seller posts their home on the MLS, they must understand that the MLS is mostly used by realtors. It is unlikely to have a buying agent consider your home for their client if you do not offer a commission. The seller should offer a 2% -3% commission to attract buying agents. If the seller uses the right online listing service, the commission will not be paid if the home is sold outside of the MLS (by owner or on the listing site). This way you can get the best of both worlds.

The seller should also pick the professionals needed for the close of the transaction. When a realtor is used, many times the realtor will take care of picking these companies. If the seller does not check, the companies picked might not give the seller the biggest bang for their buck. Once again, with the use of the internet, comparing companies has gotten easier.

The bottom line – You can sell in this market, it just requires a little effort which can save you thousands of dollars.

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