The Top Ten Challenges Faced by For Sale By Owners
- Virtually every buyer buys by comparison. Having only one house to show prevents you from helping the buyer do comparison shopping; be able to substantiate the price.
- It is difficult to determine the tastes and requirements of a buyer if you have not had the opportunity to fully qualify him/her beforehand.
- Do you have the legal expertise to personally prepare a valid and fully enforceable contract? If not, be sure to have an attorney review all documents.
- Buyers are reluctant to discuss their finances with the other principals. Most sellers fail to ask for a credit report, source of down payment, as well as other information critical to determining the buyers’ credit worthiness.
- If you have to call the buyer back yourself, you are weakening your bargaining position and may give the buyer the impression that you are desperate to sell. A seller who seems anxious usually receives less money for their home.
- Buyers normally will not discuss disadvantages or shortcomings they feel are present in your property. Thus, because you do not know what their objections are, it is virtually impossible to overcome them.
- By showing your property to whoever calls on your ad or your signs, you will often waste valuable time doing showings for unqualified prospects.
- Buyers, who know you are selling For Sale by Owner, almost always deduct the six percent off your asking price. You are essentially viewed as a “wholesaler” and thus, buyers expect to pay a wholesale price, rather than a retail price.
- Obtaining the name and phone number of everyone who calls is often difficult. Buyers are often reluctant to provide strangers with accurate information about who they are and what they can afford. A call capture system can help eliminate this problem.
- For most sellers, their home is their most valuable possession. Are you willing to risk having your most valuable possession sold by someone other than a well-trained, seasoned professional? A knowledgeable mortgage loan specialist can be an asset in helping the process go smoothly.
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