There are several homeowners out there who consider trying to sell their home on their own, known in the housing industry as For Sale By Owner, or FSBO. For a vast majority of sellers out there, we believe this is an awful idea.
Here are five reasons why we believe you shouldn’t try FSBO.
1. You Probably Aren’t Prepared To Negotiate With Several Different Parties
Some people think selling FSBO will only have them speaking with the buying party. However, this isn’t the case. Here is a list of some of the people you’ll need to be prepared to negotiate with 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 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 home.
- The appraiser if there is a question of value.
- Your bank in the case of a short sale.
2. You May Not Be Exposing Your Property Correctly To Prospective Purchasers
Its been proven that 92% of buyers do their home searching online. Recent studies have shown that only 28% of buyers look at print newspaper ads. Most real estate agents have devised an online marketing strategy to help get your home sold. Do you have an online marketing strategy?
3. Results Really Do Come From The Internet
Where do buyers find the home they actually purchased?
- 90% on the internet.
- 9% from a yard sign.
- 1% from the newspaper.
4. FSBOing Has Becoming Increasingly More Difficult
Industry disclosures and regulations have become mandatory, making the paperwork involved in selling a home a more lengthy and time consuming process. This is one of the bigger reasons why the percentage of FSBOs has dropped from 19% to 9% over the last 20+ years.
5. You Can Net More Money When Using An Agent
Many people who want to FSBO believe that they’ll net more money because they will skip out on paying the real estate agent’s commission fees. Do realize, many buyers also look at buying from a FSBO because they also believe that they can save on commission. The seller and the buyer can’t both save on the commission.
The average homeowner may be able to sell their home $184,000, as recent studies have shown, however a real estate agent may be able to sell the same home for $230,000. This doesn’t mean that an agent can get $46,000 more for your home as research has shown people are more likely to FSBO in markets with lower price points. However, this does show that selling on your own may not make sense.
Before you decide to take the challenges of selling your house on your own, sit down with a real estate professional in your marketplace and see what they have to offer you.