Now that you have decided to take the necessary steps to sell your home you need a fsbo-strategy to market your home
Factors to consider when doing a fsbo.
Is your property in the country or a major metropolitan area
If in a metro area is the suburb location an A, or B or C or D class suburb
[The determination of A – D ranking will pretty closely align with land values]
In your suburb is the location an A, B, C, or D position
[ The determination of A to D ranking will closely follow position in relation to transport, services and amenities]
What is the age of your property?
What is the condition of your property?. Does it need alot of maintenance to bring it up to scratch?
What is the external appearance of your property [poor fair good excellent?]
Passing Traffic are you on a busy highway or located at the end of a cu de sac.
What is the property market doing right now? Rising/falling/going sideways?
Your Property buyer Profile
Will they be a first home buyer or a second home buyer
Will they be a white or blue collar worker?
Is the buyer likely to have a big cash deposit?
Is the buyer likely to be an owner occupier or investor?
How do we find “Mr. Buyer” or how does “Mr. Buyer” find my property?
Well “Mr Buyer” is out there somewhere....he may live in the same street as you, he may live 500 miles away, or he may drive pass your property every day.
Mr “Lazy Real Estate Agent” relies on the fact mostly that “Mr Buyer” regularly drives past your place, this is why his “for sale” signs bring him 70% of his sales. Now if your property is in a cul de sac Mr Agent shouldn’t be relying on his 900 x900mm corflute sign to do the business for him. Sometimes he’ll even run some property pictures of your home in the local rag to see if he can find “Mr Buyer” in the next suburb. And in the last few years he’s even thrown up some pictures on the web in an effort to catch some out of Towner’s & computer phoebes as buyers. As you can see “Mr Agent” has been having quite a bit of trouble catching “Mr Buyer” for quite a long time and then his most favoured closing technique you already know about is ‘reduce the asking price’, and then there is all those other tricks you have heard which he plays which I’m sure you know about otherwise you wouldn’t be reading this right? If you need to fresh your memory go to www.no-agent.com.au
OK Mr. For Sale By Owner! .... you have decided to catch “Mr. Buyer”. How are you going to do that? May I suggest that you need to attract him ! .........and what bait might I use?
Getting the right Bait
As any fisherman knows, fish can be fickle feeder’s, sometimes they are in your neck of the woods and sometimes they are way down the coast. Sometimes we can go down to our local stream and hook Mr Buyer and some seasons we have to go far away to find Mr Buyer. Depending on the season [market rising or falling] we need different bait to hook to hook a totally different variety of Buyer. Sometimes there are just too many fishermen in the one spot and not enough fish to go around so that only the lucky ones hook a Buyer. So if you want to be a lucky fisherman have a look at the facts and stack the odds in your favour.
There are always some variety of buyer’s in season just like there are fish in the sea...it’s just the numbers any variety that differ. As life inevitably goes along people die, people are born, people marry and people divorce. So Mr Mum’s & Dad’s” varieties are always there and their numbers don’t differ much.
As seasons change, [the booms & busts], the numbers and variety of buyer’s change. When the boom is on Mr. “Speculative investor” appears out of no-where in overwhelming numbers and any fisherman with virtually any property bait can catch Mr Buyer. When the bust is on this variety magically disappears till another boom season. [ I have heard some people say they have seen him feeding at the local stock market in these off seasons. Some also say they have seen Mr “Professional Investor”, Mr “Make a Quid” and Mr. “Desperate” feeding there also on occasions]
Enough of the fishing analogy. Take a look at your property and decide your buyer varieties and how you are going to snare him.
Will a corflute street sign do it for you? What volume of passing traffic? Should the sign be professional looking or ugly so that buyers think they might be able to take advantage of you? Have you seen the ugly hand written “We-buy-houses” signs. Are they deliberately ugly for a reason? [Is there a hidden hook in that there bait?]
Do we need a local newspaper advert to let the local towns folk know of the opportunity you are offering? Or do we need a daily as my property is such a special opportunity that the wealthy folks of the town should know?
Do we need to go out of town to find Mr Buyer a national magazine as our property is so unique or just a web spread. Does it deserve just a mention on a big site that is expensive, a feature ad, or a more targeted web site with specific types of buyers. If I go with that big web site will my listing be lost in all that advertising noise, and competing properties of others?
Should I spend some money on making my property more attractive?
Should I offer some unique high quality attractant such as making my home more affordable by offering it on terms or leaving some money in the deal to later so that my property is much more affordable than any competition? Check here for Vendor Finance Options
Should I actually get someone to help market my property professionally? How much will that cost? Should I be spending my money on that or on the landscaper or painter to dress up the place a bit? Should I be doing a joint venture with an investor to save stress?
These are questions you need to ask of yourself?