PEGGY ALLEN, ABR, CRS, GRI 

Integrity, Innovation, Loyalty 

   YOUR REAL ESTATE CONSULTANT

 LICENSED IN IOWA AND ILLINOIS 

RE/MAX BI-STATE - 901 E KIMBERLY ROAD - OLD TOWN MALL  -  DAVENPORT, IOWA 

1-563-359-3898   Home        -       1-563-349-0100   Cell       -       1-563-388-0008   Office       -       1-563-388-0008   Fax 

                    Responding to "FOR SALE BY OWNER" Problems

         Problem  #1: I’m sure I’ll get a buyer in no time. I’ve only had the house on the market one week, and I’ve already had three people come and see it.

How many of those people have come back a second time? One of the problems with showing a house is that you get a lot of browsers who just like to see other people’s homes.                                                                                                                                                                                                                                                          Did you have anyone who made an offer? Often prospective buyers find that they can’t really afford the houses they find appealing in the ads. As a real estate professional, I always try to prequalify buyers first so that I’m not wasting an owner’s time showing buyers houses they can’t afford.

Problem #2: I need every cent I can get from the sale to put toward my new house. I can’t afford to pay a real estate commission.

I know that it’s important to have the biggest downpayment possible. But a NAR survey (2000 Profile of Home Buyers and Sellers) found that people who sell their homes through a real estate professional sell their homes for almost 15 percent more than people who sell their homes themselves. So even if I charge a 6-percent commission, you will probably come out ahead.

Often the buyer who wants the house most will be willing to pay the highest price. Because our company advertises so many (include number) of homes every week, we probably get a call from just about every buyer in the market. If more than one buyer gets interested in your home, you might be able to get a better price.

You know, buyers understand about real estate commissions, too. Any buyers who purchase from an owner will automatically assume that they can discount the price by the amount of the commission. The only person who gains if you sell your house directly is the buyer.

Problem #3: What do I need you for? I can put up a sign in my yard just like you would.

It’s true that your sign will attract buyers, but many of them won’t be able to afford your home. When I get a call from a house sign, I can pre-qualify the buyer before showing the house and steer them to a house that fits their financial abilities.

When you advertise your own home, you have an inventory of one. We currently have many listings. So every call I receive from a buyer gives me a prospect of several homes. That means that if you get ten calls from your yard sign, you might have five prospects. But if I get ten calls from the houses I’ve listed, I might have 30 prospects for your home.

         Problem #4: If I list my property, it will be with my friend in real estate.

It’s great to be loyal to your friends. But you know that your home is probably your single biggest asset. Do you really think your friend is the person who could get you the best price for your home?

I’ve always found that the biggest problem with working with friends is that it’s so hard to fire them if they don’t perform. You take such a risk of losing their friendship and wasting a lot of time not selling your house.

Can you afford to list your property with a friend for 60 or 90 days, and take the chance that it won’t sell? If you’re planning on buying another home, that’s a big gamble.

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