In today’s real estate market, with homes selling fast, listing prices rising and multiple offer situations, some homeowners might think about selling their home on their own, better known as a For Sale by Owner (FSBO).
Here are 5 reasons this may not be a good idea for most sellers:
1. Lot’s of People to Negotiate With/Deal With/ Respond To
Here is a list of some of the people you must be prepared to deal with if you decide to For Sale By Owner:
The buyer who wants the best deal possible for the least amount of money
The buyer’s agent who represents the best interests of the buyer
The buyer’s lender
The home inspector, who works for the buyer and will almost always find issues with the house
The appraiser if there is a question of value
The title company
2. Marketing to Prospective Buyers
Recent studies have shown that 89% of buyers search online for a home compared to only 20% 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 newspaper
The days of selling your house by putting up a yard sign and advertising in the newspaper are long gone. Having a strong internet presence and marketing strategy is crucial.
4. FSBOing has Become More Difficult
The paperwork involved in selling and buying a home has increased dramatically as regulatory agencies and industry disclosures have expanded and tightened. Your legal liability can be greater. Perhaps this is why the percentage of people FSBOing has dropped from 19% to 8% over the last 20-some years.
The 8% FSBO share represents the lowest recorded figure since NAR began collecting data in 1981.
5. You May Net More Money with an Agent
Many sellers believe they will save the real estate commission by selling on their own. Realize the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission and therefore pay less. The seller and buyer can’t both save the commission!
Before you decide to take on the risks and challenges of selling your house on your own, let’s discuss the many benefits of using a local real estate expert.