In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.Here are the top five reasons:1. Exposure to Prospective BuyersRecent studies have shown that 94% of buyers search online for a home. That is in comparison to only 17% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?2. Results Come from the InternetWhere did buyers find the home they actually purchased?51% on the internet34% from a Real Estate Agent9% from a yard sign1% from newspapersThe 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.3. There Are Too Many People to Negotiate WithHere is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:The buyer who wants the best deal possibleThe buyer’s agent who solely represents the best interest of the buyerThe buyer’s attorney (in some parts of the country)The home inspection companies, which work for the buyer and will almost always find some problems with the houseThe appraiser if there is a question of value4. FSBOing Has Become More And More DifficultThe paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing 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 AgentMany 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. The seller and buyer can’t both save the commission.Studies have shown that the typical house sold by the homeowner sells for $185,000, while the typical house sold by an agent sells for $245,000. This doesn’t mean that an agent can get $60,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.Bottom LineBefore you decide to take on the challenges of selling your house on your own, let’s get together and discuss the options available in your market today.
Top 5 Reasons You Should Not For Sale By Owner
By Pam Treece|2016-12-26T11:00:06-07:00December 26th, 2016|Categories: For Sellers, FSBO's, Real Estate|