When people make the decision to sell their home without using a conventional real estate agent (FSBO) they generally do so in order to save the 6% commission while knowing that they will give up whatever assistance the realtor would have provided. What of course comes to mind is the help that the realtor would provide in selling the home and the advertising that the realtor’s brokerage firm might run in local publications. Knowledgeable FSBO sellers prepare for that and typically do a good job of marketing and selling their own home.
What few sellers focus on is the knowledge of the local mortgage community that realtors bring to the table. In today’s tough market the number one reason for a house sale not closing is the inability of the buyer to secure a mortgage. Nevertheless, few FSBO sellers are equipped to help potential buyers secure a mortgage.
What would a seller do if the “prequalification letter” that a buyer had with him when he made an offer didn’t turn into an approval when it came time to close? A knowledgeable, and more importantly, a successful FSBO seller must be able to do everything that the realtor would be able to do. That includes assisting the buyer in securing the mortgage needed to close. In almost every case no mortgage equals no sale.
Before putting a house up for sale, FSBO sellers should familiarize themselves with various mortgage companies and try to make sure that their sale won’t fall through for lack of financing. Even more important the right mortgage bank can tell you within hours if your buyer is going to qualify for the mortgage they need to close. Nothing is worse than giving your buyer 60 days to obtain financing, taking your home off the market and at the end seeing the sale fall through because the buyer couldn’t get a mortgage.
It’s easy to go online and see what various mortgage bankers and brokers have to offer. If you do take the time to go online, take the extra time to call and interview each firm that you think looks interesting. As many online mortgage bankers are only interested in working with those that want a mortgage when they call, make sure to explain your situation right up front so you don’t waste your time talking to someone that will ultimately not be interested in doing business with you as you are not ready to commit.
Please contact me directly with your comments or questions. Readers ideas for blog postings are always appreciated.jbritz@yahoo.com.
