For Sale by Owner in Michigan-A Huge Growing Trend That Helps Motivated Home Sellers and Buyers

One of the biggest advantages when you list your home for sale by owner in Michigan is that you know you are going to make the profit, not a real estate agent. The real estate agent can charge up to 6% commission of the total price, which can severely cut into your bottom line.

Although it’s not bad to use a real estate agent, in this soft economy many people are trying to save the money they would have had to pay a real estate agent. And as buyer, why pay more for the property when working with a seller directly gives you more negotiating room to drop the price.

For sale by owner in SE Michigan (Southeast Michigan) is booming we’ve noticed lately, and a quick look at the papers and Internet ads across the entire state shows pretty much the same thing.

Michigan Houses for Sale By Owner

Michigan houses for sale by owner, bottomline, is the preferred way for many people to sell their home in this downward trending housing market.

Selling your own home offers a number of advantages over a traditional real estate listing through an agent. These are the most prominent:

Michigan Houses for Sale by Owner Pros

  • You are in complete control.
  • You set the price and negotiate the closing.
  • You decide when, where and how you will advertise.
  • You control the open houses, showing, etc.
  • As a buyer, you can find Michigan houses for sale by owner at cheaper prices because the middle man (and the fee) is out of the picture.
  • For Sale By Owner or FSBO is advantageous for both buyers and sellers in that it puts them in direct contact with each other.
  • Michigan houses for sale by owner usually means lengthy negotiations are reduced because there’s no more third party. The buyer and seller are in direct contact with each other. Offers are made and accepted or rejected much more quickly.
  • The game of phone tag with an agent waiting to see if an offer has been made or an offer has been accepted is gone.
  • Negotiations are more productive because sellers and potential buyers are motivated to come to agreements on terms.
  • Buyers can get questions answered directly about the property by the party that actually lived in it.

Quick tips for Buyers:

  • Read the local papers for FSBO listings For sale by owner SE Michigan ads are easy to find in major papers and on the Internet. Check mlive.com or subscribe to the Ann Arbor Observer.
  • Do your research about the property. FSBO sellers are required to offer full disclosure on information about the property but just like when dealing with a real estate agent this is not always the case.

    Or let us put you into a home. As investors we have unique programs to get you into a nice michigan home, even if you have poor or damaged credit…in the town you want to live in and at a monthly payment you can afford.

  • Consider a buyer agent or using a real estate investors like us if this is your first purchase to assist with negotiations and legal issues.

For sale by Owner in Michigan

Quick tips for Sellers

  • Do your research. Find out what the market is like for FSBO’s in your specific area. Look at the similar Michigan houses for sale by owner in your neighborhood and similar communities. Check comps on websites like http://www.zillow.com.

    In addition, real estate investors, like us here at Buy-Sell-Michigan-Real-Estate, can also help out home sellers by buying their houses with cash or on terms if they are truly motivated to sell.

  • If you consider for sale by owner in SE Michigan consider hiring a real estate appraiser. Appraisals can be cost effective and will give you professional advice on the market value of your home with a one-time, up front cost. Real estate investors like us are also connected with professionals that can do a good job at determining a property’s fair market value.
  • FSBO listings (in newspapers and on the internet) offer cheap and affordable advertising for your home in a number of venues. FSBO advertising also offers targeted advertising directly towards buyers looking for FSBO properties.
  • Pre-qualify home buyers. Require that potential buyers be pre-approved for loans in the amount required for purchase of your home. Or if you can’t find anyone who can get preapproved, talk to creative real estate investors like us who can get buyers financed for your home if you’re willing to work on terms.

FSBO Tips – Telling Potential Buyers There Are Other Offers

This practice is often done with different types of major purchases: automobiles, business deals, and yes (we know) homes!! Is this a good idea, especially when it comes to a For Sale by Owner home? Let us take a look at this concept.

There are occasions when an FSBO will receive multiple offers on their home. In that case they have a few ways available they can deal with this. One way is to let each potential buyer know that there ARE other offers being made to them. They can even “play a game” of telling the other prospects when a counter offer is made. An important thing this will do is jack up the selling price of your home. The logic being, whoever wants it badly enough will pay the highest price to you. This is almost like being at an auction. In this type of a scenario, telling prospective buyers about other offers is a good thing.

However, before utilizing this type of strategy you must understand any negative effects this could have on your sale. If one or more of your prospective buyers feels they have already proposed a fair price for your home; continuing to play this game could only aggravate them. You may well wind up with everyone getting disgusted with the process and NOBODY buying your house. Then YOU will be the loser, as the possible buyers will likely all go elsewhere instead.

Something else about an FSBO entertaining multiple offers for their home and telling the other buyers about them is this. Both the seller and the buyer run the risk of missing out on a great opportunity. This is an especially good point to make to the other potential buyers in a multiple-offer situation. Be sure to tell them all the great features of your home, yard and neighborhood. Do not leave out any important details. Let each prospect know what they will be missing if they drop out of the process. Remember – it is highly likely they already view your home as a “deal they cannot refuse.” Then they could wind up just as disappointed as you are if they miss out on the opportunity to purchase your home.

One thing you can do to make the most out of entertaining multiple offers for your home is to be prepared in the first place. BEFORE you begin as an FSBO do some research on this scenario. Go onto pertinent websites, talk to experts, find out how you should best deal with this concept; should it arise. Practice your negotiating techniques of this type beforehand, then you will be ready to deal with it. Another thing you can do is to get to know each potential buyer when they begin to make an offer. Learn about any limitations they may have financially or even mentally. Perhaps their personality type makes them adverse to this type of negotiating deal. You will want to know that before telling them about other offers. The best advice you can get on this subject is – to be prepared!