FSBO is a term that refers to selling a property without engaging the services of a real estate agent. The purpose is to avoid paying fee and commission to a real estate agent. For the sellers, this trend has been quite successful, making it the preferred option. FSBO is growing in Australia too, as the sellers are turning to this way more and more.
Except hiring a real estate agent, FSBO needs certain professionals and services to engage for making a proper sale. A helpful service in this regard is BuyMyPlace. This is a platform where FSBO sellers can register to enlist their properties, which are syndicated on numerous MLS platform.
To make the most of a sale made through FSBO, you must learn how it works. To help you understand how FSBO works in real time, let’s see this case study shared upon request.
Blacktown, Greater Western Sydney, NSW
- 2 bedrooms
- Open plan living and dining
- Floating timber floors
- Parking and garage space
The sellers were relocating to a bigger place and had mortgage on house too, so they didn’t want to lose any opportunity to make the most their sale. They were also concerned due to last year’s price fluctuations in Australian real estate market. Thus, they chose FSBO.
House Preparation for Sale
The first step they took was to get the house ready for sale. The house was already in a decent condition, so it didn’t cost them much to give the appealing look. The first focus was the kitchen and bathroom, which just needed cleaning. Two of the doors were painted.
Pertaining to kerb appeal, they painted the front gate, mowed the lawn, and added a few lights on the doorway.
To avoid the clutter and make the place look spacious, they boxed unnecessary stuff and put in the garage. The house was ready to put on the market.
Marketing the House
Firstly, they started spreading the word about selling their house among friends and family, but it didn’t bring much luck. As the next marketing step, they listed the house on buymyplace.com.au, which lists its members’ properties on a number of MLS platforms. They also placed a sign post in the front yard. On the second day, they got seven calls. They scheduled the visits with a gap of three days.
The first visits were not so hopeful. Two of the buyers made close offers, but they could not afford to lower the price. In fact, they set the asking price after very careful calculations. The best offer was $30,000 short of the asking price.
They felt a bit disappointing too. But FSBO is all about patience, so they entertained the new calls. The number of calls grew to 20. But they restricted the visits to five.
To cut the long story short, the visits were merely visits. Things didn’t work out.
Amendments in Listing
They decided to reconsider the ad for listing. They enhanced it with more details and photos. They got more calls and scheduled the visits, but this time only three.
This time they spent more time with all potential buyers. It allowed them to explain their place with vivid details. They also had developed the idea of communicating with the potential buyers, which worked. One offer was of $417,000 and the other buyer finally agreed with their asking price. The rest of the process involves usual and legal processes. It took them 26 days to find a buyer through FSBO, but it was worth it.
It boils down to the fact that successful FSBO depends on your detailed homework and patience.