Some homeowners consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). We think there are several reasons this might not be a good idea for the vast majority of sellers.
Here are five of our reasons:
1. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom 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 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 house
- The appraiser if there is a question of value
- Your bank in the case of a short sale
2. Exposure to Prospective Purchasers
Recent studies have shown that 92% of buyers search online for a home.
That is in comparison to only 28% looking at print newspaper ads. Most
real estate agents have an extensive internet strategy to promote the
sale of your home. Do you?
3. Actual Results also come from the Internet
Where do buyers find the home they actually purchased?
- 43% on the internet
- 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. FSBOing has Become More and More Difficult
The 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 9% over the last 20+ years.
5. You Net More Money when Using an Agent
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 commission.
The seller and buyer can’t both save the same commission.
Studies have shown that the typical house sold by the homeowner sells
for $184,000 while the typical house sold by an agent sells for
$230,000. This doesn’t mean that an agent can get $46,000 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 Line
Before you decide to take on the challenges of selling your house on
your own, sit with a real estate professional in your marketplace and
see what they have to offer.
Need advice only a good real estate pro can give? Call/Text Julie Ternes, Realtor, REMAX Advantage at 719-629-6142 or visit www.JulieTernesHomes.com Today.
