For Sale By Owner – don’t let someone else’s success story trick you into thinking the process is a piece of cake. While it’s worked for some, FSBO might not be a good idea for the vast majority of sellers.
The top 5 reasons are listed below:
1. Online Strategy Reaches Prospective Purchasers
Recent studies have shown that 95% of home buyers start by searching online. In comparison, only 13% hunt through print-newspaper ads. Most real estate agents use the internet for their strategy to promote the sale of your home – do you?
2. Results Derive from the Internet
Where did buyers find the home they actually purchased?
- 50% on the Internet
- 28% from a Real Estate Agent
- 7% from a yard sign
- 1% from newspapers
The days of selling your house by putting up a sign and tossing a note about it in the paper are long gone. You need a strong Internet strategy – it’s crucial.
3. Too Many People to Negotiate With
Here is a list of some of the people you’ll negotiate with if you decide to For Sale By Owner:
*While you read the list, ask yourself, “Do I have the resources and outlets to negotiate confidently with said person?”
The buyer – wants the best deal possible
The buyer’s agent – solely represents the best interest of the buyer
The buyer’s attorney (in some cases)
The home inspection companies – which work for the buyer and will almost always find some problems with the house
The appraiser – if there is a question of value
4. FSBO is Increasingly More Difficult
The paperwork involved in the process has increased dramatically as industry disclosures/regulations have become mandatory. This is one of the reasons that the percentage of FSBO has dropped from 19% to 7% over the last 20+ years.
5. You Net More $ When Using an Agent – Seriously.
Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. However, the seller and buyer can’t both save the commission.
A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, they may actually cost themselves more. One of the main reasons for the price difference at the time of sale is:
“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”
The more buyers that view a home, the greater the chance of a bidding war for the property. The study found the difference in price between comparable homes of size and location is currently at an average of 6%.
Listing on your own leaves you to manage the entire transaction yourself. Why do that when you can hire an agent without additional cost?
Before you decide to take on the challenge of selling your house on your own, reach out to us to discuss your needs.
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