Before buyers get to see your house and get a first impression, their impression will come from your marketing and it will tell them quite a bit. Home made signs or those cheap black and red hardware store signs that say "For Sale By Owner" on them are known around here as "Five Thousand Dollar" yard signs. That's because a cheap sign tells the buyer two important things that could end up costing you sometimes five thousand or more dollars in a lower offer:
1. You need money - It may or may not be true, but a low end or homemade sign makes you appear short on cash or motivated. Either impression makes you vulnerable to a lower offer.
2. You are doing it on your own. Savvy investors and agents know that for sale by owners don't know the ropes as well as they do, and without expert advisors, you are vulnerable.
In addition to the professional appearance of your sign, there are two words you never want to have on your yard sign. They send an unconscious message to buyers that you are desperate, motivated and alone. These two words often result in lower offers. The sad truth is that many home sellers and by owner companies nationwide start off with these words on their yard signs, (unless they have a strong background in marketing). These two dangerous words are "By Owner".
People may think that because you aren’t paying an agent’s commission that you are priced lower. How you market your property is irrelevant to its value. There is no advantage to you in broadcasting that you are marketing by owner. In fact, it will increase the number of calls you receive from agents that don’t have buyers but are looking for a listing. Over time, fending off these calls wears on you and many people will end up listing with an agent just to make it all stop.
By posturing yourself at the beginning of your marketing to give a professional impression to buyers, you reduce the chances of having to deal with distractions and lowball offers.
Jill