For Sale by Owner in the Twin Cities?

Every year, many Minneapolis St. Paul metro area homeowners who decide to sell their current home start thinking about handling the process for themselves. In most cases, the reason for putting a home on the market on a For Sale by Owner (FSBO) basis is to avoid paying a commission to a real estate broker and agent. These owners believe that they can handle the sale themselves and keep all of the proceeds. Since they’re not professional licensed Realtors, though, the pitfalls soon become clear when the home doesn’t sell quickly and fails to get offers at or near the desired price.

All too often, a FSBO property just languishes in the Twin Cities busy and active housing market. Instead of getting the price these owners want for their property, they end up still owning that home months later. There are some situations where a FSBO home can sell quickly and for a good price, but they’re rare. Here are some of the reasons that For Sale by Owner homes cause problems for buyers and sellers alike:

• Inaccurate Home Valuation & Pricing – Setting an appropriate asking price for any home is a complicated process. Few homeowners have the experience and market research tools to accurately price a home, and often overvalue or undervalue their home, leading to unsold homes or realizing less than the home is worth.
• Neglected Home Preparation – It’s difficult for a homeowner to identify all of the ways to improve a home’s salability. In today’s market how a home presents itself is crucial, and uncorrected deficiencies, even minor ones, can cause any home to age on the market and be even harder to sell.
• Ineffective Marketing – Most For Sale by Owner homes in Minnesota are not marketed well, and proper marketing is the key to attracting potential buyers. Our sharply honed marketing strategies are designed to create maximum interest in homes listed with us.
• Unqualified “Lookers” – When a homeowner puts a home on the market and advertises it as For Sale by Owner, just about anyone can call to visit the home. It’s almost impossible for a homeowner to learn whether a potential buyer is serious and qualified to purchase a home. This can lead to wasted time showing a home to unqualified buyers and can even lead to risks of theft or worse. In addition, questionable home buying services are sure to make insulting, low-ball offers.
• Inexperienced Home Showings – When an owner shows his or her own home, a number of problems can arise. Prospective buyers are often uncomfortable discussing deficiencies with the owner, and may not be as thorough in looking at the home. Owners, who may be easily offended when prospective buyers point out issues, may not present the home in its best light. The result is often a lack of offers and even hard feelings.
• Problems with Negotiations – Every Minnesota home sale involves negotiations. These may be negotiations about price, repairs, inspections, and many other issues. These can be very difficult without an impartial, objective person acting as a go-between.
• Timing, Financing & Title Issues – Even after a price is agreed on and a purchase agreement is completed, there are many pitfalls that can cause a potential sale to fall apart. Homeowners are rarely capable of shepherding a transaction through issues with inspections, appraisals, financing, title issues, and getting to closing within a reasonable amount of time. The number of details that must be managed is difficult for the average person to comprehend.

Understand the Risks of FSBO Homes in Minneapolis St. Paul, MN

If you’re thinking about handling the sale of your Twin Cities metro area home as a For Sale by Owner project, think twice before proceeding. If you’ve already given it a try without success, call our top-ranked REMAX team to make a fresh start. At no cost or obligation to you, one of our experienced, talented agents will be glad to evaluate your home’s market value accurately and will show you how our proven marketing strategies can get your home sold quickly and at the best possible price.