Is a Jupiter FSBO a Good Idea?
Potential savings but also risk
When I decided to sell my first home I contacted the top two real estate firms in the area and asked them to come over and talk. This was in 1983 when the market wasn't that great and interest rates were very high. The "best" of the two told me it would probably take at least 6 months to get it sold and I would be lucky to get $55,000. I thanked them both for their time, went to the hardware store and bought a "For Sale by Owner" sign. I stuck it in the ground that afternoon and closed on the property three weeks later for $64,000.
My welcome to the world of real estate. I was certainly a bit lucky but I had also reached out for an "expert" opinion, did much better and saved myself paying any commission. Not a bad deal indeed. And that was when the market wasn't so good. What about today when there is a lack of good inventory and buyers are out there; does marketing your home as a Jupiter FSBO make any sense? Indeed it does if you know what you are doing and get a little lucky. And if you properly price your home and attract the right amount of attention by your marketing efforts.
The first thing most Jupiter FSBO sellers are thinking is they will save a commission and they might. Keep in mind there are a number of factors that will ensure you will be able to secure the best price for your home and those include properly pricing and marketing it. Without these tools, properly executed, achieving your goal will not be so easy.
Your target audience for a Jupiter FSBO is out there but 86% of them are shopping on-line. Sites like Realtor.com, Trulia.com, Zillow.com, younameit.com they are out their searching before contacting an agent. Will you be able to reach them? If your property is not showing up and properly marketed you are missing the largest potential market for your property. And to attract the most interest your on-line advertising had better include professional photos and a story to attract the most attention. The reality is most of these tools are not available to a Jupiter FSBO seller.
Pricing is also a very important decision and the reality is nobody can tell you what your property is worth. Pay for three different licensed appraisers to come to your property and the odds are high you will end up with three different numbers. The more unique your property the larger the spread you will usually find. There is no exact science to pricing but there are tools and these combined with the right marketing program will determine the success of any sale including a Jupiter FSBO.
We won't even touch the potential legal issues with disclosures, escrow, title issues, closing costs, inspections, etc. but you should have an understanding of what could happen. We live in a litigious society so be imformed and prepared.
Over the past few weeks we have sold properties for clients well above any historical pricing. In one case we exceeded the highest priced sale in the community over the past 7 years by almost 14%. There is a combination of factors that make that possible but I assure you without the photos and story we utilized to market the property it would have never happened. And we had to offer a co-broke commission. If we didn't my client would never have set a new pricing record with their sale.
As a Jupiter FSBO seller you could sell your property without offering a co-broke to a Realtor but you would be probably be making a costly mistake. The reality is if the stars align properly you can save a little money by selling your property as a Jupiter FSBO. But the odds really aren't that good. Most for sale by owners sell their home for a price lower than they could have with professional representation. Improper pricing strategy. Improper marketing program. Can you save yourself some money on commissions; perhaps. Are the odds in your favor; probably not.
However, if you are contemplating selling your property as a Jupiter FSBO do yourself a favor. Give Paradise Sharks Real Estate a call at 561.308.0175 and have us over for a complimentary consultation. It may turn out the best "free" thing you have ever done.
Paradise Sharks Real Estate