From $15,000 to $50
There is an odd psychological quirk that affects a majority of home sellers when they finally decide to sell privately. While they were contentedly prepared to offer 6% commission to a realtor without even blinking ($15,000 dollars on a $250,000 home) They become consummate tightwads when considering spending one thin dime on a decent marketing plan of their own.
Even a mere $32 investment on a decent "for sale" sign becomes “too much money” and they opt to scrawl in crayon (a $2.00 felt tip marker is not in the budget) on the reverse side of a cardboard box a hasty “for sale” and the telephone number. Then when they surprisingly get zero response they tell their spouse; “see….I told you private selling doesn't work” and promptly call their realtor who in turn extracts $15,000 from the deal.
Why does this happen? What bizarre mental aberration exists that makes people so unbelievably tight when it comes down to selling their home privately??
One theory I have is these people don’t actually believe it can be done. So armed with zero confidence they put forth zero effort and obtain zero results. It’s a self fulfilling prophesy really, they create the very situation they expected to occur.
Another theory is the “Now” money vs “future” money. Meaning that spending $500 NOW hurts a lot more than taking $15,000 from money you won’t have until sometime in the FUTURE. It's almost hypothetical money. But falling into this mind set will cost you thousands, so don’t do it!! The equity in your house is REAL money, and the thousands you save will eventually be in YOUR pocket.
No need to spend a fortune, and FAR LESS than $15,000, but in all likelihood more than $50.
That having been said there ARE circumstances where you might not have to spend a dime and your timing is perfect and the house sells for your full asking price. If you are in a “hot” market the chances are obviously more realistic of this happening than in a cooler buyers market. In our free fsbo guide we list several web sites that list you for free and can bring potentially decent results. Also if your home is priced very low for the area, you likely will have an easier time of finding buyers. BUT THIS IS THE EXCEPTION NOT THE NORM. So please be prepared to invest some time and money into marketing your property.
You should establish a predetermined amount of time, and a reasonable budget prior to starting your marketing. $200-$500 is decent for an average home and will create upwards of 10,000 views of your property which should in turn find a buyer if you are priced right.
