Considering FSBO? Learn the Value of Using a REALTOR^®

Your home is one of the biggest investments you'll make in your lifetime. When it comes time to sell, some homeowners will take it upon themselves to sell their own home. This is known as "FSBO" or "for sale by owner." Over half of FSBO sellers (63%) choose to sell their own homes to avoid paying a commission.

Today, with Facebook marketplace, social media, and services like Zillow, many homeowners are under the mistaken idea that it's easy to sell a home. Just check the price trend on Zillow, and create a social media post, and your home is "sure" to sell. However, the fact is that unless you have experience selling homes, a FSBO listing is almost always a bad idea.It just might end up costing you in the long run.

To properly and legally sell your home is not an easy task. There are nearly 200 typical actions taken when selling a home. They includeresearch steps, processes, and review stages in a successful residential real estate transaction normally provided by a full-service real estate brokerage in return for their commission. Some may take minutes, hours, or even days to complete depending on the transaction, while some steps may not be needed.

More importantly, these actions reflect the level of skill, knowledge, and attention to detail required in today's real estate transaction. This underscoresthe importance of having help and guidance from someone who completely understands the process – a REALTOR®.

In this post, we're going to take a general look at the key elements of a transaction that your real estate professional will address when selling your home. In future posts, we'll break down the steps in more depth.

Pre-Listing Activities

Your REALTOR will begin working on your sale, even before you've home is listed on the MLS. Before listing your home, a fair amount of research must be done. This includes researching comparable homes in your area, sales records for the previous 18 months, and "average days on the market" for properties similar to your home's style and location.

• Your Realtor will also look into your home's public record information, including land use coding and zoning, and verify legal ownership.
• They then prepare a listing presentation for you using this and additional information, including an exterior "curb appeal assessment" on your property.
• They also take all of the information they have compiled and create a listing appointment presentation to sit with you and present their plans for listing and selling your home.
• The agent explains their role in taking calls to screen qualified buyers, present strategic marketing plans, explain different agency relationships, and determine your preferences.

Once Your Home is Under a Listing Agreement

Once you've signed a listing agreement contract with your REALTOR®, they will begin working in earnest to prepare your home's MLS listing.

• They will review your current title, measure the overall and heated square footage, confirm the lot size, and note any unpaid and unrecorded property lines, agreements, and easements.
• Next, they will verify all utilities, including city water/sewer or septic system, electric availability, and natural gas. They will calculate all utility usage for the past 12 months. If there is a rental component, they will verify any rents, deposits, and leases and assist the seller with completing the seller disclosure form 74.
• Finally, in preparation for listing in the Multiple Listing Service database, they will conduct a Curb Appeal Assessment and Interior Decor Assessment. Upon reviewing the results, they will suggest changes to improve salability and shorten time on the market.

Entering Your Property on the MLS and Marketing Your Listing

As soon as your REALTOR® verifies all of your information, they will prepare your home's MLS listing and implement their marketing strategy to sell your home.

• They start by preparing an MLS profile sheet. Your agent is responsible for "quality control" and the accuracy of the listing data.
• They will then enter your property data from the MLS Profile Sheet in the MLS database and check it for accuracy, including ensuring it is properly placed into the mapping function.
• Once this process is complete, your agent will provide you with signed copies of the listing agreement and MLS Profile Sheet Data within 48 hours.

When your home's MLS listing has been verified, your REALTOR® will begin implementing their marketing strategy for your home.

• They will create print and internet ads with your input. Post your listing on their website, social medial account, and prepare mailing and contact lists and prepare mailing pieces and flyers.
• Your agent will regularly review comparable MLS listing to ensure that your property remains competitive in price, terms, conditions, and availability throughout the entire process.
• They will call you weekly to update you and discuss marketing and pricing.

When the Offers Come

This is where the experience of your REALTOR® shines. In today's market, you will likely receive multiple offers. When the offers come in, your agent will receive and review all Offer to Purchase contracts submitted by buyers or buyer's agents.

• They will evaluate the offer(s) and prepare a "net sheet" for you for comparison purposes. They will counsel you on all offers, explaining the merits and weaknesses of each component of each offer.
• Next, they will confirm that the buyer is pre-qualified and negotiate on your behalf, setting the time limit for loan approval and the closing date. They will also prepare and convey any counteroffers, acceptance, or amendments to the buyer's agent.
• When the Offer to Purchase is accepted, your agent will record and deposit the buyer's earnest money into an escrow account and begin to track the loan process as they work with the buyer and the buyer's agent to coordinate the home inspection process and schedule the appraisal.

Selling a Home:The Closing

If everything is approved and the home passes inspection, a contract is prepared and signed by all parties. Your agent will coordinate the closing process with the buyer's agent and lender to ensure everyone has all of the necessary documentation needed and schedule a time and place for the closing occurrence.

• They will then confirm the date and work with the buyer's agent to schedule and conduct the final walkthrough before closing.
• Before the actual closing date, your agent will prepare all of the final figures, including tax, HOA, and other prorations, review all of the closing figures and provide the earnest money deposit check from the escrow account closing agent.
• Upon the closing, they will close out the listing.

Post-Closing Follow-Up

Even after your home is sold, your REALTOR® is working to ensure that the buyer is satisfied. They remain available to answer any questions they might have about filing Home Owner Warranty claims. They also remain available to clarify and resolve any conflicts about repairs if the buyer is not satisfied and respond to any follow-up calls for additional information your buyer might request.

Selling your home is an important milestone. Engaging a REALTOR® to handle all of the details is a smart decision. It's a fact that working with a real estate professional can help you get the best price for your home and make sure that all of the details and legal necessities are taken care of properly.

Your real estate professional possesses the level of skill, knowledge, and attention to detail that's required when selling a home. They are there to guide you and protect your interests in an often complicated and sometimes complex transaction. And it's important to remember that your REALTOR® has pledged to uphold the stringent, enforceable tenets of the REALTOR Code of Ethics in all of their professional dealings with the public. Not every real estate licensee holds REALTOR® membership. Make sure yours does!