Seller's Dilemma: OTM, FSBO or List Again?

 

When a ‘listing for sale agreement’ on a house is about to expire, home sellers must decide to either take their house off the market (OTM), For Sale by Owner (FSBO), list it again with the same agent, or list it again with a different agent.

Let’s assume you or someone you know is in this situation and take a closer look at each possibility:

 

Taking Your Home off the Market

In all probability, after putting your house on the market and seeing it not sell, you’re going to be upset. You may be thinking that no one in the marketplace thought the house was worthy of the sales price.

Because you are upset, you may start to rationalize that selling wasn’t that important after all and say,

“Well, we didn’t really want to sell the house anyway. This idea of making a move right now probably doesn’t make sense.”

Don’t rationalize your dreams away. Instead, consider the reasons you decided to sell in the first place. Ask your family this simple question:

“What made us originally put our home up for sale?”

If that reason made sense a few months ago when you originally listed the house, chances are it still makes sense now. Don’t give up on what your family hoped to accomplish or on goals your family hoped to attain.

Just because the house didn’t sell during the last listing contract doesn’t mean the house will never sell or that it shouldn’t be sold.

 

Re-Listing with your Existing Agent

For whatever reason, your house did not sell. Perhaps you now realize how difficult selling a house may be or that the listing price was too high, or perhaps you’re now acknowledging that you didn’t exactly listen to your agent’s advice.

If your listing agent's marketing and advice was exemplary, you may want to give your existing agent a second chance. That’s a perfectly okay thing to do.

However, if your agent didn’t perform to the standard they promised when they listed your home or you believe a different marketing style or additional services can lead to a sale, you may want to FSBO or try a different agent.

 

For Sale by Owner

You may now believe that listing your house with an agent is useless because your original agent didn’t accomplish the goal of selling the house. Trying to sell the house on your own this time may be alluring. You may think you will be in control and save on the commission.

But, is that true? Will you be able to negotiate each of the elements that make up a real estate transaction? Are you capable of putting together a comprehensive marketing plan? Do people who FSBO actually ‘net’ more money? 

If you are thinking about FSBOing, take the time to learn about testing and inspection contingencies, what financing products are suitable for purchasing your home and what are not, the average timeline in your current marketplace from application to financial commitment, the difference between a standard appraisal and an appraisal for U.S.D.A, VA, FHA, or WHEDA financing, state mandated disclosures, municipal regulations, current market value, the minimum acceptable down payment for various financing products, compliance with Fair Housing Laws as reflected in both your marketing and with whom you agree to schedule showing appointments and negotiate a sale, and where to find credible contractors for speedy evaluations and cures (asbestos, electric, fireplace, foundation, HVAC, LBP abatement, mason, pest control, radon, roofer, septic, surveyor, water, well, etc).

 

List with a New Agent

After failing to sell your home, you may no longer trust your agent or what they say. However, don’t paint all real estate professionals with that same brush. Have you ever gotten a bad haircut before? Of course! Did you stop getting your hair cut or did you simply change hair stylists?

There is good and bad in every profession—good and bad hair stylists, agents, teachers, lawyers, doctors, police officers, etc. And just because there are good and bad in every line of work doesn’t mean you don’t call on others for the products and services you need. You still get your hair cut, see a doctor, talk to a lawyer, send your kids to school, etc.

 

Bottom Line

You initially believed that using an agent made sense. It probably still does. Let's get together and discuss the possibilities.  It's a pleasure to help!

Home Staging:  To Do or Not to Do?

 

Do This…

• Hang a mirror on the wall opposite the front door - or in a location close to the front door - so that prospective buyers can ‘see themselves’ in your home.
  
• De-personalize and add breathing room by removing family photos, trophies, souvenirs and children’s artwork. Clean out drawers so they’re no more than 30-percent full.
• Place only a few pieces of furniture in each room and pull them away from the walls to make the room look bigger.
• While neutrals are the de facto palette when selling your home, add a couple of pops of color to an accent wall or cabinets to bring depth and personality to your home.
• Highlight tech and green features. Today’s homebuyers are keeping an eye out for smart-home features and green-friendly elements, such as smartphone-controlled thermostats and energy-saving appliances.

Not This!

• Don’t crowd a room with too-large furniture. If you crammed a king-size bed into your not-so-king-size bedroom, replace it with a queen.
• Don’t try to mask unpleasant odors with perfumed candles or baked goods in the oven. Have a professional cleaner get to the root of pet smells and musty scents.
• Don’t use colors randomly. Use a variety of neutral colors that flow nicely from one room to the next.
• Don’t confuse a room’s purpose. Make sure every room’s primary function is obvious, i.e., a bedroom should look like a bedroom, not a home office.
• Don’t neglect your home’s exterior. Even if you’re listing your home in the middle of a dreary winter, make sure porches and patios are neat and tastefully accented with outdoor furniture and planters.