5 Reasons You Shouldn’t FSBO
In today’s real estate market, with home prices rising and a lack of inventory, some homeowners may think it will be easy to sell their home on their own. In the industry, this is known as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for most sellers.
1. There Are Many People to Negotiate With
Here is a short list of some of the people you must be prepared to negotiate if you decide to FSBO:
- The buyer who wants the best deal possible
- The buyer’s agent who solely represents the best interest of the buyer
- The home inspector, who works for the buyer and will almost always find problems with a house
- The appraiser if there is a question of value
2. Exposure to Prospective Purchasers
Recent studies have shown 88% of buyers search online for a home. This is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?
3. Results Come from the Internet
Where do buyers find the home they actually purchased?
- 44% on the internet
- 33% from a Real Estate Agent
- 9% from a yard sign
- 1% from newspapers
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.
4. FSBO’ing Has Become Very Difficult
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures, documents and regulations have become mandatory. This is likely why the percentage of FSBO’s has dropped from 19% to 8% over the last 20+ years.
The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
5. You Net More Money When Using an Agent
Many homeowners think they will save the real estate commission by selling on their own. The main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.
Studies have shown a typical house sold by the homeowner sells for $210,000, while a similar typical house sold by an agent sells for $249,000. Even with real estate commissions, a seller would net more by using an agent.
Real Estate Bottom Line
Before you decide to take on the challenges of selling your house on your own, let’s get together and discuss your needs.