Below is a list of mistakes made on a regular basis by For Sale By Owners (FSBOs). These are things to be conscious of or seek professional assistance with.
Not understanding contingencies. How quickly must the buyers get their loan approved? What about building inspections? All of these issues can play a major role in determining whether your real estate will close in a timely fashion, or not all.
Falling to provide the potential buyer with a seller’s disclosure. Failing to disclose certain defects in the property can become a major liability in the future after the sale.
Pricing your property incorrectly. Even though most FSBOs want to sell their property because they can save the marketing fee that a real estate brokerage charges, studies have indicated that most FSBOs end up selling their property for less money than it is actually worth in the market place. It is always good to have a few appraisers and a few realtors offer you their opinion on the price before setting yours.
Drafting the real estate contract on your own. Although you may be tackling the challenge of handling the marketing, showings, and negotiating details on your own, trying to do the legal side of the real estate transaction is something most FSBOs should avoid. It is always good practice to hire an attorney to help with your contact and to be involved in the transaction.
Neglecting to register all potential buyers who preview your property. For security reasons, for the safety of you and the future owners of the home, you should record everyone who comes to view the home incase of any incidents down the road.
Providing too much information. Many sellers know how much money they have invested in their property and believe it’s a good selling feature, sometimes giving away too much information can make you appear desperate or that something is wrong with the real estate.
Lacking the negotiation skills. Most FSBOs are not used to negotiating price and other items during the real estate transaction. Understanding important issues such as earnest money, possession, load commitment and inspection dates can all play a major role in negotiating a sales contract.
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Tags: Ask the Realtor, Ottawa Condo Market, Ottawa Realtor John King, The John King Team Ottawa
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This post was written by John King