Monday, September 10, 2012

Direct Owners

For Sale by Owner

Direct owners

Why people choose this way?

Everyone has a different reason to sell...

Primarily we have to understand as real estate consultants why sale by direct owners became a direct owners and they choose this way. Why do people sell or lease or rent their real estates themselves? What are the goals in this one? What thoughts or reasons pushing them to sale by direct owner (DO or FSBO).

1)  Thought of "I can sell by myself better"
2)  Have lot of time

3)  No trust
4)  Do not want to give commission
5) Thinks He/she will not get proper service
6) Have wide social environment, well-connected
7) Thinking they can sell for better price
8) Experiences from past
9) They have been always follow this way before

It can be added more reasons there. Generally DOs what makes them like this  "DO" is their thoughts. That is why they mostly will not want to use any consultants or agents.

When DOs are trying to liquidate their real estates they may experience some problems. If we briefly take a look at those;

1. Mistakes in marketing

They may have problems in marketing. For example, each property has a target audiences. If this target can not be identified correctly you can not reach right customer.

2. Problems to reach recipients

To reach the buyers they uses methods like newspaper advertisements, internet advertisements and some times it is only a " for sale " sign on their property. Sometimes also contacting to real estate agents close by. So is it that easy to sell a real estate? It is not like a chewing gum on shop.


 3. Difficulties to attract the prospect buyers

DOs can be contacted by phone or e-mails maybe even 40-50 times a day after they gave ads and those contacts mostly also real estate agents. They eagerly answer phones early days. But after a while they can get bored from that and their reaction to calls will be like " key is there or in my maid , take it and see it yourself"

4. Problems in evaluating the real buyers

Each prospective buyer can be different. While it was a balcony to delight to some buyers, at same time in same property the other one choose closed parking and the other one pick garden size and construction to buy it. The only way of knowing it to make a correct buyer analysis.  


5.Price negotiating mistakes

When they have a dept to pay next morning to pay how healthy can be a negotiation? 

6.Price determination

Their criteria mostly setting price of their property usually the house which they will buy new or their dept to pay or projects or future plans budgets, receivables and liabilities. So importance of region, m2 or any unit price around area and price fixing will not effect their price. 

7.Emotional barriers

Woulnt it be heartbreaking  when someone says "this kitchen i will demolish it and renew it. It is made tasteless" which you designed and took care carefully to build. What will be DOs reactions to buyers if they face with this?

8.Time loss

Isnt it a wasting time to struggle to sell your property by yourself while you can use that time with your family and other important things? 

9. Lack of consultancy

Issues like how to overcome bureaucratic obstacles on sale of real estate. What to do if there is mortgage problems, foreclosures, disputes on property. How many of DOs know the solutions of those?

10. Personal security reasons

This one i will write soon deeply. 



On this topic
Finally, How many of DOs knows how to cope with stress likely to live during the sale of real estate ...

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