Real Estate News & Views

For sale by owner: Is it the right solution for you?

by Jackie Scheller, Real Estate Broker

You may have noticed more “for sale by owner” signs popping up in your neighborhood than ever before. I can tell you why and if it is a good idea.

Research indicates that available home inventory is at an all-time low. Home prices continue to be pegged at the top. Interest rates remain stable but higher than we are accustomed to. With buyers struggling to find homes, sellers seem to think that they can get an easy catch for a buyer and save the fees associated with marketing and closing through a licensed Realtor.

Truth be told, selling by owner if you are an attorney or Realtor can make sense, though even then there are frauds and scams vying for the seller’s attention at every turn. Less experienced individuals can find themselves in trouble and even in legal hot water.

Sellers have legal responsibilities set forth by the state for marketing their homes. There are documents that must be completed and shared with any and all interested buyers. If a seller is offering financing (land contract), this, too, requires a specific set of documents, timing and legal handling of private financial information. One of the greatest concerns, though, should be that you have no idea who you are granting access to your home. Safety first!

Licensed Realtors can help you sell your home at a fair price, so the cost of such services makes sense. Realtors do much more than bring buyers and sellers together. A Realtor will follow the transaction through the inspection process and closing. Realtors also pre-screen all potential buyers. At your request, a Realtor can require proof of funds or a lender pre-approval prior to showing your home.

One other thing: Buyers often avoid seeing “for sale by owner” posted homes because they are uncomfortable with the seller tagging along and don’t want to offend the seller with a lower offer.

If you have a place to go, now is a very good time to sell. Buyers are waiting.

Sales are up in May and June with average home “sold” prices at or slightly above last year. The number of days on the market is about 25% longer than last year. Inventory is slowly inching up, and this will follow the basic economic equation of supply and demand over time. The crazy days of paying 20% over asking price seem to be over, yet the market is getting sellers’ top prices, even with interest rates where they are. I also am seeing a lot of cash buyers.

We are fortunate to have local Realtors in our community who you can count on. You don’t need to go it alone. Schedule a no-obligation appointment to discuss your situation.

Jackie Scheller

Jackie Scheller is a licensed Realtor/real estate broker, local business owner, entrepreneur, and retired business teacher. She holds a master’s degree in education from Wayne State and a bachelor of arts from Eastern Michigan University.