5 Tips How To For Sale By Owner Real Estate FSBO In Lexington Kentucky

5 Tips How To For Sale By Owner Real Estate FSBO In Lexington Kentucky

So you want to sell your house by yourself and you have a ton of questions? Let’s look at 5 things you have to get right to sell your home for the most money!

1. Price it correctly!

This is the number one mistake I see FSBO’s make.  They do little or no research and they price it extremely high!

So how do you determine what your home is worth?  Your Z-estimate is not where you start!  (Here is some research I did on the Z-Estimate in Lexington Kentucky  Spoiler: It is frequently wrong and off by as much as +-$21,000.)

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So how do I properly price my property?  You need to do a comparative market analysis.  Here is a step by step:

Find comparable sales

– Go to Fayettepva.com

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  • Type in your address

  • Click on the card for your property

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  • Then click Show parcel map

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  • Look for properties that are green as they represent recent sales

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  • Make a list of at least 5 properties with similar bedrooms, bathrooms, square footage and finishes.

  • Want to investigate finishes?  Google the address and look to Trulia or Zillow for images

  • Then take the sale price and divide it by the square footage of each home.

  • Then take the average price per square foot of the five homes

  • Multiply the average by the number of square feet in your home and you will arrive at a good estimate of  your homes value

  • Lastly, make adjustments for features of your home.  (A deck v no deck is not worth $10,000)

— Ask me!  Just click this link —->  Get A Free Home Value Analysis or give me a ring or email.  morgan@lexhomehub.com (859) 576-0801

– Another option which will cost between $3-500 is to have a professional appraisal done.  This will help avoid surprises when your buyer’s appraisal comes in for less than the selling price.  Shoot me an email at morgan@lexhomehub.com for a recommendation for a great appraiser

– Remember that the true value of your home is what someone is willing to pay.  Just because an appraisal, a comparable analysis or z-estimate state a value, that is not the end all be all.  Be prepared for this especially as mortgage rates begin to rise.

2. Professional Photo/Video

To market your property you need to have an immersive multimedia presence online as    

           89% of all home shoppers start online (Realtor.com)  

  • Professional Photos – Don’t even think about using your cell phone or anything below a DSLR.  Some folks can put together some decent photos but it’s best to hire a professional.  In Lexington you can get this done for under $100 for the average home.  Email me at morgan@lexhomehub.com for photographer recommendations.

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  • Video – A video tour is becoming more and more popular.  I don’t mean a slideshow of images but let potential buyers tour your home with a video.  You can produce decent results with an Iphone 6s or better thanks to image stabilization but I strongly recommend hiring a professional.  You can accomplish this for under $200.  Here is an example of one of mine:

3. Market Your Property

  • Post all of the great professional content from step 2 to Zillow and Trulia for free!  Create a free account on both and post your property for sale there.

  • Also, syndicate your property to numerous websites using postlets

  • Share your Zillow or Trulia listing via your social media accounts.

  • I wouldn’t waste money on a FSBO site like owners.com or forsalebyowner.com.  All they do is syndicate to Zillow/Trulia/etc which you can do for free.

  • Thinking about MLS?  Make sure that if you choose to list with a discount or flat fee MLS provider that your listing is going to be part of LBAR.  There are hundreds of independent multiple listing services (MLS) in the US.  If you are not gaining access to LBAR then you have likely wasted your money.

  • Color Flyers – Print up some fliers with the best 2-4 pictures of the home, price and contact information.  This is extremely important for drive by’s.  I recommend FedEx/Kinko’s

  • Sign – Bigger is better!  Don’t just get a small sign from Lowe’s.  Spend $40 and order a large one with a frame online.

  • Call buyer’s agents and educate them about your property.  Expect them to try and get you to list with them.  However, as of December 2015 inventory is very low in Lexington and buyer’s agents are eager to find the perfect home for their buyers.  One of the biggest benefits you get with when you list with an agent is their network.  I speak with numerous agents every week to learn about new listings, price changes and other changes in the market.  As a FSBO you can’t replicate this but making contacts and phone calls will certainly help!

  • PICK UP YOUR PHONE! – List your cell phone number in the marketing materials and answer it no matter what.  Also, change your voicemail to let callers know they have the right number and that you will return their call asap in the rare event you can’t answer.

  • Ninja Tip – DO NOT let anyone view your home until they send you a pre-approval letter to ensure that they can actually buy your home.  It’s tempting to take every single showing you get but without this you are wasting your time.  If you need a recommendation for a great loan officer email me at morgan@lexhomehub.com

4. Cooperate with Buyer’s agents

  • This is another big mistake FSBO’s make because they want to save that extra commission.  However, 87% of all homebuyers utilize a buyer’s agent when making one of the biggest financial decisions of their life. (Realtor.com)  When that buyer’s agent brings a buyer they will ask you to sign a one time showing agreement before they show the home to ensure that you don’t negotiate directly with their client.  Often times they will ask for 3%.  This is negotiable but if you are difficult to deal with the buyer’s agent will likely take their client elsewhere.

  • Remain objective – Don’t take it personally if you get a really low offer.  The buyer and their agent are negotiating in their best interest.  Don’t let your emotions get in the way of getting to SOLD

5. Get your paperwork together

  • Before you decide to sell your house FSBO you need to get your paperwork and contracts in order.  I recommend that you contact a real estate attorney to prepare a contract where you can fill in information such as names/price etc when you do find a buyer.  This should cost a few hundred bucks.  There are options online for free but you get what you pay for.

6. Bonus!

Stay up to date with the Lexington real estate market and get my monthly market update for free.  Just tell me where to send it by clicking HERE.  It’s packed with great statistics and analysis of the current market.

Check out a Lexington Real Estate Quick Market Update

Bottom Line – What does FSBO save

  • Assuming that a listing agent would require a 6% commission (which is also negotiable) you will still need to pay:

  • Buyer is represented by an agent

  • 3% to a buyer’s agent

  • $400 for an appraisal if you choose to have one

  • $100 for photos

  • $200 for video

  • $200 for signs/flyers

  • $200 for legal documents

  • Your time to show the house and manage phone calls.  Expect it to take 40 hours total

  • An additional mortgage payment as FSBO’s sit on the market longer

    • Expected savings about $1,500 assuming you can get the same price an agent could get.

  • Buyer is representing themselves

    • If your buyer is part of the 13% that don’t use a buyers agent expect them to automatically discount the price of your home by the commission price.  You can’t both save the commission!

    • Assume the expenses above and may the best negotiator win.

Bottom line – by selling your home FSBO you could save a few grand for the median $172,500 home in Lexington if you got the same price as an agent.  However, expect it to take longer than if listed by an agent and you are also likely to accept a lower price.  

Have any questions about how to FSBO or anything real estate related?  Give me a ring or email (859) 576-0801 or morgan@lexhomehub.com.

Happy Selling!

P.S. Send me an email at morgan@lexhomehub.com and I will send you contacts for photo, video and appraisers.

Morgan Franklin Headshot
Phone: 859-576-0801
Dated: April 4th 2017
Views: 13
About Morgan: Hi, I’m Morgan Franklin and I am a Realtor in Lexington Kentucky. I have lived here for over 25 ...

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