You are probably wondering what “Fizz-Bo” means. Today, one of the hottest topics is the ‘real estate market’. The economy is evolving and people are trying to keep up with the changing trends. As families expand and people take a step further in making their career, the one thing that defines how they are moving forward is buying a new house.
The internet is full of articles and blogs on Fizz-Bos – FSBO or more accurately known as “For Sale by Owner”. These are the people trying to sell a property on their own without involving a real estate agent. For the past few years, the percentage of houses sold by owners has been pretty steady. Since people are not fully educated on the process, they mostly set their sights on a real estate agent. However, it is predicted that it will take just a single disruptor to overturn the property industry and the whole dynamic will change, with the owners taking complete charge.
Here’s How Fizz-Bo’s Can Make It Big in the Market
There are dozens of websites for private listings such as buymyplace.com.au that help you to put your house up for sale. To make sure that the house being sold does not call out any negative or racial comments, it must be compliant to The Australian Competition and Consumer Commission (ACCC) codes.
While you sure can tackle all the requirements on your own, you will need a real estate attorney to draw up the contract for the title transfer or any other liability issues. As for a home inspection and an appraisal, hiring someone you trust will help you get accurate details of the house.
Situations You Should Be Prepared For
Credit score requirements are becoming tougher day by day. Sellers are always on the lookout for buyers, who can not only prove their buying capabilities at the time of the down payment but also when they are being vetted in the process on income, monthly payments and personality.
“Are you pre-qualified?” is something every seller asks and you should too. However, there’s a big difference between getting pre-qualified, a commitment and a pre-approval. The former is just an assumption based on the buyer’s credit check regarding the loan application and income documents, a commitment means that the verification has been complete and a pre-approval means that although the loan application is submitted, a credit check hasn’t yet been provided by the buyer.
Along with a commitment, ask for 1% of the earnest money, so that even if the buyer cancels the deal, you are compensated for the lost clients.
Know Your Price
Last but not the least, make sure you price it right. This is something that you can do easily with a little research. Ask around if a house was sold in your neighbourhood. Get all the details from the owner regarding what was included in the sale price such as renovations, repairs or any appliances which they left behind. You can calculate your house value in the same manner and compare it with the market value. It’s important that you neither price it above or too below the market value.
Putting in marketing efforts such as advertising on social media, providing cinematic pictures or a 3D video will go a long way in attracting buyers. The first time is always the hardest but once you make it on your own, the second time it will be easier.