I couldn't help but notice this morning (along my regular route to and from school and daycare) the increasing number of homes for sale by owner. The sellers have employed a variety of signage ranging from pre-printed generic signs from the hardware store, to hand-written ones with an illegible phone number, to those of a popular fee-based FSBO website. So I wonder... What exactly is the motivation to sell by owner? And why are there more every day?
More and more sellers are choosing to go it alone. Logic tells me that in a market as complex, and challenging as the one we are currently experiencing, that now more than ever would be the time to rely on a professional. But when finances are stretched and times are tough most sellers focus solely on saving a commission. Unfortunately, in their desperation they are often missing the big picture.
The reality is that even with paying a Realtor's commission sellers typically come out in much better standing than selling by owner. When you have so much at stake, why risk losing it all just for the illusion of saving a little money? Hiring a professional should be seen as an investment in your peace of mind, as well as the protection of your interests and equity.
The economic climate and barrage of negative news on housing markets from national media outlets has jaded buyers. Buyers often make the mistake of misunderstanding the difference between local markets and the national market. Our local market in the Cedar Rapids area has remained steady. Home values have been maintained, and foreclosures and short sales do not make up the majority of our MLS. But because buyers have been convinced that all sellers are desperate and have over-priced homes, sellers are more vulnerable than ever to unscrupulous buyers looking for a deal.
The best way to sell your home and prevent an infinite number of complications is to hire a trusted professional. We understand that times are tough for many people. And we want to HELP you! Greed has no place in today's economy. Any good Realtor will work with a seller who has financial restrictions to come to an agreement that will satisfy everyone. It is in our best interest to facilitate home sales and prevent short sales and foreclosures, as this is OUR community, too.
Is it fair to say that for sale by owners are hurting the housing market? Quite possibly. There are a number of variables involved in a real estate transaction, and when too many mistakes are made, it can begin to affect the local market. Certainly there are successful home sales by owners who have the time necessary to market a home and the knowledge or resources to take care of all of the legalities. The hardest part of an unsuccessful for sale by owner may be knowing when to turn it over to a professional. Waiting too long can put home owners is desperate situations which can lead to less than desirable results.
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