They may be getting rarer, but you still see some Midlothian “For Sale by Owner” signs from time to time. Sometimes they signify an owner who, truth be told, simply doesn’t mind letting it be known that he or she isn’t in much of a hurry to sell the place. This can be true if it’s an extraordinary example of its architectural style, or beautifully landscaped and maintained, or in other ways, from curb to chimney-top, obviously a prime piece of local property. This is a For Sale by Owner anomaly though; you don’t see many of them.
A far greater number of them (‘FSBOs,’ for short) are average, run-of-the-mill homes—or even clearly neglected ones (in the latter case, the For Sale by Owner designation invites passersby to assume the sign really means “Fire Sale!!!”).
But for the everyday-looking Midlothian For Sale by Owner properties, that sign out front has to make you wonder. Currently, 88% of homes are sold through a real estate agent or broker—a percentage that’s been steadily rising for more than a decade. What would impel the owner to take a route that the vast majority of sellers avoid?
There’s often a history behind the sign: a major experience that prompted the go-it-alone venture. That story usually falls into one of two general categories—and they’re polar opposites!
This camp had a pleasure cruise the last time they sold their home. Their agent put together a listing, and BANG! That was it! Showings by the end of the week, and SOLD in days! For the full asking price! A dream closing with no unexpected details, gifts to and from the excited buyers, and nice notes still exchanged at the holidays…
The Happy Story takeaway: selling a house is so simple, why in the world would you gift a commission to a third party? It’s so easy, why not save thousands of dollars? Up goes the ‘For Sale by Owner’ sign…
These folks found themselves all but victimized by a previous home sale. Everything went haywire from the get-go. They may have started on the wrong foot, assuming that every licensed agent is equally qualified and offers the same level of service. From there, it was all downhill. Bad communication, missed appointments, showings to loud-mouthed prospects who made it clear they were not about to pay anything like that asking price. Maybe a change of agents, but the eventual sale, after those lengthy missteps (and perhaps a technical hitch or two at closing) resulted in a disappointing sale price.
The Unhappy Story takeaway: I bet I can do this better, myself! Up goes the Midlothian For Sale by Owner sign…
The current national statistics seem to indicate that the FSBO sign itself is a lot more likely to engender an Unhappy Story result. A typical For Sale by Owner home, if it sold at all, yielded just 80% of what agent-assisted sales brought. Not to mention the hassle of foregoing all the technical and marketing help a good agent brings. The first key to your own Happy Story is to find the right agent—one with a history of Happy Story endings.
This takeaway: call me!