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“For Sale by Owner”: A Case Study

“For Sale by Owner”: A Case Study

When it comes to selling a home, many homeowners in Southeast Michigan consider the option of doing so as “For Sale by Owner” to save on commission fees. While it may seem like a good idea to save the Realtor’s commission, the reality is that selling a home is a complex process that requires expertise and experience to get the maximum value for your home. 

Read through the case study below on how Janiga Estates helped our client not only save money in the long run, but also achieve significantly better results.

The Financial Impact

an infographic of a scale showing $10,500 lowered on the left with the words For Sale by Owner Added Profits and $149,550 raised up on the right side with the words Added Profit with Janiga Estates

Our story begins with a homeowner in Southeast Michigan who decided to list their property as For Sale By Owner (FSBO). To start, the seller listed his home for $350,000 aiming to save the  commission fee. Janiga Estates earns a 3% commission, so hypothetically he would have saved  $10,500 if it sold for the list price. On paper, this seemed like a smart financial move. However, the seller quickly realized that the process was more challenging than anticipated.

By hiring Janiga Estates instead of continuing to go the For Sale by owner route, the homeowner sold the property for $515,000—an astonishing $165,000 more than the original FSBO asking price.

Even after paying the 3% commission fee, the homeowner’s net gain was significantly higher than if he had sold the property on his own. Here’s the breakdown:

  • Original FSBO Asking Price: $350,000
  • Savings by Selling FSBO: $10,500

  • Listing Price with Stephanie Janiga: $450,000
  • Final Sales Price with Stephanie Janiga: $515,000

By hiring a professional real estate agent, the homeowner not only avoided the pitfalls of the FSBO process but also gained an additional $149,550 after commission.

The Challenges of Choosing For Sale by Owner

Selling a home involves much more than just putting up a sign in the yard. Here are some of the hurdles the homeowner faced:

  • Pricing the Home Correctly: Have you ever heard of “penny-wise and pound-foolish”? A lot of For Sale By Owners leave thousands of dollars on the table just tro try to save a few commission dollars.
  • Marketing the Property: Effective marketing strategies are crucial to attract potential buyers. FSBO sellers often lack access to professional marketing tools and networks. Zillow and the MLS (Multiple Listing Service) is not enough! 
  • Negotiating Offers: Negotiating with buyers and their agents requires skill and experience to ensure the best possible deal. Many For Sale By Owners don’t know how to go about getting multiple offers and driving the price up.
  • Managing Paperwork: The paperwork involved in a real estate transaction is extensive and can be overwhelming without professional guidance.

Hiring Janiga Estates Creates Remarkable Results

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Britner Court Property
Bingham Farms Village, MI

1,900+ square foot home with 3 bedrooms, 2.5 baths, with some hardwood floors, large basement, and gorgeous windows to enjoy the backyard year round.

Stephanie Janiga, a seasoned real estate agent with years of experience in the Southeast Michigan market, has helped many home sellers get similar increased sale prices. This is her specialty and what she does every day!

By leveraging Janiga Estates expertise, the homeowner’s experience took a dramatic turn for the better:

  • Accurate Pricing: With a comprehensive market analysis, the home was re-evaluated and priced more accurately to reflect its true market value. We listed the Bingham Farms Village property at $450,000 based on the area, size of the home, and quality of the home. This is already $100,000 more than the seller was hoping for doing a For Sale by Owner.
  • Professional Marketing: High-quality photos, virtual tours, and targeted online marketing campaigns were launched to showcase the property to a wider audience. Janiga Estates has a long list of contacts for people looking to purchase homes to get the property in front of potential buyers faster. 
  • Expert Negotiation: With strong negotiation skills, Janiga Estate was able to secure offers that far exceeded the original asking price. After finding multiple interested parties, we were able to secure a final sale price of $515,000! 
  • Quick Sale: The home was under contract with a buyer in just 8 days. Time is money and finding a buyer quickly can be difficult when doing a For Sale by Owner listing.

Conclusion: The Value of Professional Expertise

While saving on commission fees might seem appealing, the expertise, marketing capabilities, and negotiation skills of a seasoned agent can lead to significantly better financial outcomes.

If you’re considering selling your home in Southeast Michigan, don’t let the fear of commission fees hold you back. The right real estate agent can help you achieve the best possible results, ensuring that you maximize your property’s value and enjoy a smooth, stress-free selling experience.

Contact Janiga Estates today to learn how we can help you sell your home quickly for top dollar, and help you save more than the For Sale by Owner process.

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