For Sale by Owner Strategy

It seems like the price of everything is on the increase. In such days of thrift the real estate market sees some interesting personality changes. Among such change comes a pervasive sensation that selling real estate is easy business, as if moving were not hard enough.

Time and again, I have experienced individual sellers who lament the fact they have proceeded with a sale themselves saying “If I knew it was going to be this hard, I would have called you first thing.” This column is dedicated to the hard working few in denial that real estate professionals don’t earn their keep. It is a tip list and a go to point for any one who hangs their sign For Sale By Owner.

As I drafted this article it started looking a lot like a twelve step program until I realized that if every transaction where only broken down into twelve easy steps, we wouldn’t need REALTORS, or attorneys, or title agents, or surveyors….you get the point. So here they are. Twelve steps to selling your property on your own.

• Create a spec. sheet listing everything about your property including all vital statistics and then advertise in every medium possible (Peninsula Pulse; Door County Advocate; Door Reminder; Door County Real Estate Guide and Door County Homes books; Green Bay Press Gazette; Peninsula Pulse; Local Radio; etc.). Be sure to have your phone number (a local number forwarded works well) available on everything you distribute.
• Be available at a moment’s notice and make sure your home is inviting. This means seven days a week, whenever the opportunity strikes a buyer. Don’t leave the gate or curtains closed and keep the lights on inside and out to pique curiosity.
• Have your tests and inspections ready to go. Know what a floodplain, shoreland zoning district or wetland is and whether or not you’re in one.
• Keep your condominium and/or home owners association documents on-hand and prepare to distribute a copy to a prospect should you actually get an offer
• Contact your banker and an attorney and be sure they’re ready to move when you are. You will need an attorney to draft an offer to purchase and assist your negotiations
• Call a title agency and establish a contact there to be sure you have someone ready to help with your title work when the time comes. Attorneys charge way too much to coordinate this simple point.
• Send mailings to your neighbors or fellow unit owners. Often times people within your development are the best suited to recommend a new buyer.
• Run open houses concurrent to REALTOR open houses in your neighborhood. It doesn’t hurt to piggyback wherever possible. Additional cooperation might include offering a smaller commission split to brokerages for bringing in buyers under their buyer agency agreements. For this you will need to fax all of your local brokerages information on your property and your proposed agreement. There are 48 offices in Door County .
• Consider advertising with a FSBO website such as doorbyowner.com. They have an established pattern of activity already going in your direction
• Have an appraisal performed on the property. This will assure you that you haven’t overpriced the property and it will save time and be a valuable tool for any buyer and your REALTOR when you eventually list.
• Examine your competition. There will be other FSBO’s competing against you, not to mention the entire REALTOR MLS system. Go talk to them. You might be surprised in what they have to say about the experience they’re having.
• Finally (I can’t stress this enough), keep your price realistic. You’re already saving a small amount of commission to a brokerage, if you sell. Getting greedy about the extra work you’re taking-on is no way to entice buyers.

Keep in mind that you are limiting yourselves to people who trust in and prefer to work with individual owners on real estate transactions. There are a vast number of people in the majority who would rather work with the professional standards trained REALTORS have to offer. There is no telling how you might alienate those people during the course of your self-sales tactics and they seldom return to the scene when you do indeed list with an agent.

Be aware of your zoning laws and sign ordinances. Be sure that everything you are telling people is accurate and true to fact. Your liability insurance isn’t the same as a REALTOR’S or an attorney’s because you probably don’t have any.

Time on market is a huge factor. You can get an accurate idea about this by calling a real estate agent and asking them how long similarly priced properties took to sell. This point is so often missed. The patience of most sellers turns to frustration and anger very quickly as more and more money goes out the window to advertise.

REALTORS have a special tool they use to help entice you to list. It is called a market analysis. This research is typically done free of charge with the idea you will call them when you have established that a degree of professionalism and polish exists. This research is time consuming and very extensive. Calling a REALTOR to request a free analysis and not listing at all is typically a sure way to drive-off any potential for future cooperation. Don’t do it.

If in addition to what may be your out-of-town status, your family, your work and your spare time you actually have time to delve into the world of Door County real estate sales then good luck. It is hard work and I hope this helps. This tip sheet doesn’t even get into the dynamics required to qualify buyers and help them feel at ease in your presence. There are a lot of good books available to help you with that time consuming practice.

If getting the job done becomes more important than saving some of the extra dollars you will make by hiring a professional then just pick-up the phone. We’re here to help. We’re REALTORS. Real estate is our life.

Kevin Nordahl is a life-long resident of Door County, a REALTORŪ and a member of the Door County MLS. He is a Past President of the Door County Board of REALTORS® and a Senior Sales Consultant at Coldwell Banker Door County Horizons in Fish Creek. He may be reached online at knordahl@doorcountyrealestate.com or by phone at (920) 493-4004.

Archived Newsletters