The True Costs of An FSBO Listing for Long Island Investors

Some people try to sell a Long Island house with their own listing or through their own marketing efforts. While selling without an agent can save you money, trying to market and sell on your own house in Long Island can be a lengthy and costly process. In our latest post, learn more about the costs of an FSBO listing before you try to do it all on your own.

I hate to sound like a old man here, but there is a different generation of homebuyer here in Long Island. Times have changed and many buyers are simply not interested in buying houses that need work. There is no desire to roll up the sleeves and put in some sweat equity on a fixer upper. With low interest rates on mortgages the new norm, at least for the next few years, Homeowners would simply rather pay more for a house in great condition or freshly rehabbed and roll a few hundred more dollars into their monthly mortgage payment. Houses that are mint sell very quickly, trust me I know, the houses I sell are mint 🙂 Houses that need work linger on the market for a long time. Some things to consider when listing and trying to sell on your own:

Preparation

Before putting your house out there for potential buyers to see, you’ll want to make sure it is being presented in the best light. In order to get your home in the best shape possible, you’ll likely have to roll up your sleeves and get dirty or bring in the help of a few professionals.

Cleaning

The house should be cleaned from top to bottom. Floors, cabinets, mirrors, walls, and everything in between. You may enlist the help of a professional when it comes to the carpets or maybe power washing your patio. Carpets must be steam cleaned or removed is they are in very bad condition. All clutter and trash should be disposed of and the outside cleaned as well. No abandoned cars or old swing sets decaying in the back yard.

Staging

Many people will choose to stage the home in order to appeal to the most buyers possible. You can choose to add a few pieces yourself or hire a pro to come in and set things up. Some people will focus on only a few areas instead of trying to stage the whole house which is sometimes all that is needed. If your house is already stuffed with furniture, get rid of whatever excess furniture is not needed. excess furniture can make a house seem small and cramped.

Storage

If you are going to stage your home with new or borrowed items, you’ll need a place for your stuff. Do clear out some of the clutter. You might consider renting a storage until to house all of your unnecessary items while your house is on the market. It will be well worth the money. Try and throw out or give away what you realistically don’t need.

Repairs

Before listing the property, you’ll want to make any necessary repairs. Seeing even one or two things broken can leave a bad impression with your potential buyers. They might wonder what else is wrong with the house. You may face more repair costs once the home inspection has been done in order to satisfy the buyer and their lender. Any obvious safety and code violations will have to be corrected. Many buyers attempt to use a home inspection report as leverage to try and have the price lowered after a price has been agreed upon.

Marketing

There are all kinds of things that go into successfully marketing your Long island home for sale. You’ll need to take a look at the many marketing avenues available to you, then choose which methods will be the most cost effective for you. You don’t want to find that you spend so much on marketing, that you completely negate your savings of avoiding a realtors commission.

Signage

To get the attention of people driving by and to let potential buyers know they have found the right house, you’ll need to add some signage out front. You’ll want to choose something eye-catching, yet not obnoxious. Keep in mind that you should check with town hall for whatever jurisdiction you live in as some towns and villages have ordinances that prohibit the use of For Sale signs in front lawns. Valley Stream is one such jurisdiction.

Printed Materials

You’ll use printed materials during open houses, for people who come to see the home and to be left out front so people passing by can quickly access the property’s information. You can also choose to leave some flyers with local businesses or to put up on school or community billboards. This kind of advertising still works!

Photography

We’ve all seen those listing where the photos were taken with a cell phone, maybe out of a car window. These aren’t going to cut it if you want your home to stand out. The use of a professional photographer can help you sell your house faster! This is not expensive and usually runs about $200 for a quality set of digital folders. This is well worth the money.

Open House Supplies

Throwing an open house is like throwing a party for your house. You’ll want to have some snacks and some beverages available for your guests. You’ll also have to deal with the clean-up after, although your average open house is a bit tamer than those parties you remember from college. Keeps a vacuum cleaner,, mop and some cleaning supplies handy to prepare the house for the next showing.

Online Advertisements & Premium Listings

There are a number of sites out there you will want to list your home on. Many of the sites require a fee to place your ad. Some are free, however, your listing will drop to the bottom of the list as others are added. To keep your property at the top of the list, you’ll need to shell out for those premium listings.

Your Time

Your time has incredible value. When selling your home on your own, you’ll be spending a good amount of time preparing the property, advertising the property, answering questions about the property and neighborhood, showing the house when people want to see it, and managing the offers as they come in. You will need to have an understanding of how to qualify buyers and get supporting documents of their financial condition to ensure you are accepting the best offer. Often this will not be the highest offer. The best offer is the combination of a good price, with a buyer that is likely to be able to qualify for a mortgage and close on the property.

Holding Costs

In addition to the costs of your time mentioned above, you’ll have even more costs that are dependent on how long the process ends up taking. Utility costs, homeowners insurance, property tax liability, a mortgage, landscaping, and other regular maintenance will all add up faster than you may think. If the property takes several months to sell, you could be looking at thousands of dollars in costs related to the property you are trying to sell. If the buyer cannot get approved for a mortgage and gets out of the contract, you may have to start over again.

The Risks

When selling your property on your own, there are some risks to be aware of. Not having things done legally, not selling for what the home is worth, and not having any guarantees can be huge risks when you take matters into your own hands. If you are not a pro at sales and negotiations, you could be leaving some money on the table. Over the last 30 years statistics have shown that FSBO houses sell at a discount to what they would have sold for if marketed by a professional. By the nature of the listing, buyers are likely to offer less for a home when they know that the seller is trying to avoid paying a commission to a realtor.

Your Options

Aside from selling on your own, you could choose to hire an agent to help. However, just like with an FSBO listing, there are no guarantees with an agent either. Your other option is to avoid all the hassles, waiting and costs altogether and sell your property to a direct home buyer in Long Island like CoMax Properties! We always pay fair prices, while handling all of the details! Learn more about how we can help! Give us a call or click the link below to contact us online. Lets chat and see if we can help.