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Pitfalls of DIY or FSBO selling...
Definitions...
- DIY (Do-It-Yourself)
- FSBO (For-Sale-By-Owner)
The fixing of a price should never be the subject of trial and error, which is sometimes how property owners establish value. The object of the exercise is for you to have a quick sale, achieve a satisfactory return and have a smooth exit from the property.
Real estate salespersons, through market knowledge reinforced by up-to-date statistical information, can accurately assess the current value of a property. Some are qualified as valuers (appraisers) or have valuation professionals in their offices. Assessing market value is an essential service offered by real estate salespersons to vendors, who should use it to place their properties on the market.
Many vendors are inclined to be over-optimistic but there is still a small group who are induced to sell at hundreds, even thousands of dollars below the true value of the property when they don't have the appropriate advice.
Case Studies
The Real Property Planet learned of one instance of an elderly man, recently widowed, who was facing the future with much uncertainty. He had been approached by a person who entered into a discussion about a price he would accept for his home.
The widower, who knew nothing about real estate prices, was taken unawares. He looked back at the price he paid for the house six years before, in what was then a developing suburb, added small margin to that and named a figure, which the would-be purchaser accepted with alacrity.
Obviously the widower did not know that his property had increased in value a good deal more than he had assessed. The true selling price would have been many thousands of dollars higher, and a real estate salesperson could have told him this, had he sought advice.
In this case the sale had already proceeded, but in another which we came across a salesperson was able to save another very elderly man from being exploited. The man, living alone in one of the older suburbs of a city, received an offer from a stranger who knocked on his door one night. The offer appeared to the old man to be in line with the current market value.
The man had been considering a move to a home unit to escape the effort of keeping his own large property in order. However, he was doubtful about the offered price, and sought the advice of a nearby real estate salesperson. The salesperson discovered that the property had changed from a residential to commercial zoning and was therefore worth almost double the amount of the would-be purchaser’s offer!
