We have a soft spot for FSBOs (For Sale By Owner). In this market, when every penny matters, it’s understandable that you would want to test the market on your own before giving a broker exclusivity on your home. Below is a phased approach to reaping the rewards of your and a broker’s efforts. Remember to have automatic “trigger” mechanisms driven by tracking metrics that either keep you in each phase or force you to go to the next.
- Phase 1 (2-3 weeks): List it by yourself to see the kind of market feedback you get. Do not ignore or down-play offers at this time. The first 3-4 weeks of a listing are the most critical and telling of the apartment’s competitiveness. Goal: attract buyers with no broker representation (approximately 20% of the market).
- Phase 2 (2-3 weeks): Since most owners are happy to pay the 3% fee to brokers who bring them buyers, get free advertizing by “open listing” on broker’s websites. This does not mean you are exclusively listing your property. Rather that you are targeting a larger mass, getting the additional exposure of the broker’s site and only paying if your buyer comes through a broker. At this stage, you are having a conversation with the broker around general pricing guidance, along with tips on maximizing the showcasing of the apartment. Goal: get the brokerage community involved and expand your reach.
- Phase 3 (2-3 months): If the apartment hasn’t yet sold, now is time to list, get representation, and take your efforts to the next level. This enables you to get the full array of sell-side services: pricing strategies, marketing campaigns, the full reach of the brokerage community, etc. If you’ve done a good time of tracking activity to date, this information will be invaluable to your broker as you collectively work to adapt to market feedback. Goal: sell as efficiently as possible.