FSBO is the process where a homeowner sells his property without the aide of a real estate broker in Chicago. The purpose of selling FSBO is of course to gain additional net proceeds (i.e., profit), since you won’t pay any broker commission. Although most would agree that more money in your pocket is a good thing, others argue that selling FSBO is not an easy task. In fact, many have said that there are multiple challenges selling FSBO.
In order to sell FSBO, you’ll need to overcome challenges in order to sell your property. These challenges will truly define your success. How you solve these challenges will be the true test when determining whether you are bound for success, that is, will you be able to sell your property?
If you are about to start selling your property as a FSBO, it’s best to first do your research. Indeed, there are common challenges that FSBO’s face. This way, you’ll have a better idea as to the potential challenges that lie ahead.
Common FSBO challenges and How to Solve Them With Flat Fee MLS:
Problem: Limited Access to MLS Sites – As a FSBO you do not have access to the MLS. You’ll only be able to access website that pull (i.e., syndicate) information from the MLS. Again, you will have any access on the backend where you can add your property to the MLS for sale. Only licensed real estate brokers that are members of the MLS have the ability to add property listings to the MLS.
Solution: Flat Fee MLS Service – One of the main advantages of using a Flat Fee MLS broker is ability of that broker to help a FSBO put their property into the MLS for a flat fee. So if you’re interested in overcoming a major FSBO challenge – being ineffective marketing — you need to have your property placed into hundreds real estate related websites that syndicate their content from the MLS. A Flat Fee MLS broker can help you do just that.
Problem: Lack of Negotiation Skills – When selling FSBO, you’ll likely deal with potential buyers that are looking for the best deal possible. Lack of negotiation skills can put you at a serious disadvantage.
Solution: Experienced Flat Fee MLS Providers – Well established and experienced Flat Fee MLS providers go beyond just listing your property into the MLS. In fact, some go the extra mile and will genuinely help FSBOs sell their property by providing them with significant additional services, such as high-end buyer negotiation services. You really need to research in order to find the right Flat Fee MLS provider. Make sure that they’ll assist you with negotiations before entering into any listing agreement.
Problem: Challenge in Preparing Required Documents – As a seller, there are many documents that are required to sell your home. These documents are 100% mandatory for the transaction and completely necessary to close the deal. As a FSBO, if you don’t have the knowledge to prepare these documents, you’ll be at a serious disadvantage and could have significant post-closing legal issues, if you do not produce these documents.
Solution: Flat Fee MLS Providing Document Templates – Only the best Flat Fee MLS providers understand these challenges faced by FSBOs. This is why reputable Flat Fee MLS providers will provide necessary documents, and make them accessible to their clients. You should be given the ability to download necessary templates.
Problem: Marketing and Advertising Challenge – FSBOs sell their own property. It’s not something they do every day. This also means that FSBOs most likely do not have a set marketing strategy or advertising plan in place. The inability to market and advertise their property could a major reason why most FSBOs fail to sell their property.
Solution: Flat Fee MLS Provides both Online and Offline presence – Flat Fee MLS brokers understand the marketing and advertising challenges faced by home sellers and FSBOs alike in Chicago. When engaging a Flat Fee MLS Broker, FSBOs can channel the brokers experience to effectively market and advertise both online and offline. One way that effective Flat Fee MLS brokers increase your online presence is by sharing the property for sale via social media. Simply sharing your property to your friends on social media will certainly increase your online presence. But that’s not all your Broker should be doing. In fact, Flat Fee MLS Brokers should also consider offline marketing. For example, the best providers also include a For Sale Yard sign in their listing package that can be placed in the front yard of the property. This will capture the attention of potential buyers who might be passing by the property. The online and offline marketing strategies given by Flat Fee MLS providers are essential to have your property properly advertised.
Problem: Disclosures and Contracts Are Mandatory – Some FSBOs claim it’s difficult to sell because of the contracts and disclosures requirements. They assert that this paperwork consumes a lot of their time and the work involved is too much to handle. Frankly, they just don’t have time to devote to the sale because of family considerations and work obligations.
Solution: Flat Fee MLS Broker Access to Contracts and Disclosures – Flat Fee MLS Brokers should provide access to these important documents. These brokers should allow FSBOs to use them at their disposal.
According to research, potential buyers first go online when searching for a property. Additionally, about 48% of sales are actually initiated from online channels. This means that FSBOs must have an online presence when selling a property. And if a FSBO lists their property in the MLS, they will gain an important online presence. Most buyers search websites that syndicate their listings from the MLS. This means that these websites post properties for sale that are first listed in the MLS. As such, listing your property in the MLS as a FSBO unquestionably gives you the best online marketing presence and selling strategy. And as we mentioned above, only real estate brokers can list properties for sale into the MLS. This means that if you want to increase your net proceeds at closing, Flat Fee MLS broker is essential to completing that strategy.