I'm a DIY (Do It Yourself) kind of guy! If I can do the work and save money doing it, I'll give it a shot. There is a certain satisfaction is doing things for yourself.
A few months ago I had the carpet replaced in my house. Now, I am not skilled enough to actually lay the carpet, stretch it, and tac it down. But, I did save about $400 by moving all of my furniture and then pulling out the carpet myself. It took me about 12 hours because I did it all by myself, but for me it was worth it (some of my friends and relatives disagree). So when I hear someone say they want to sell their house "For Sale By Owner (FSBO)," I get it! There is a definite temptation to save thousands of dollars in real estate commissions.
A popular website which will remain nameless that specializes in FSBOs laid out seven reasons you should attempt to sell your own home through their website. Here are their reasons and my honest rebuttal:
- "Less Hassle and Frustration" - doing a FSBO may save you money but it will not save you hassle and frustration. The very definition of DIY is hassle and frustration. You make a conscious decision to put up with it in order to save money in any DIY project.
- "You Can Sell Your Home Better than Anyone Else" - the name of the game in real estate is marketing. If you live in a small community (a few thousand people) then you can probably get away with putting an ad in the newspaper and selling the home in a reasonable amount of time. But, if you live in a large town or city, you are going to need to have an online presence. This is a huge part of what you get if you hire the right real estate agent. Contrary to the website's opinion, a well priced house will not sell itself.
- "Sell for a Price on Your Terms; You're in Control" - I'm a bit of a control freak so when someone says I'm in control, that appeals to me. Unfortunately, this is not really the case when pricing a home. Although a home owner may control how much they want for the property, the market should determine your price range. A good real estate agent will research the market, give you the hard truth, and help you adjust as the market adjusts.
- "More Money in Your Pocket" - this statement can be absolutely true. If you don't have to pay the commission and are lucky enough to get your house sold, you will probably have more money in your pocket. But, beware! A savvy buyer and/or buyer's agent who knows you don't have to pay a commission may offer you less money. Also, be prepared to pay 2%-4% commission to the buyer's agent. They won't bring their buyer to you if you don't. In the Charleston SC market, 92% of all homes sold are done so with the assistance of a real estate agent.
- "Sell Your Home Fast" - this is about as ludicrous as the above #1. You can save money as a FSBO, but speed in sale is not a good expectation. Why? Most likely the marketing will not be in place to get the word out about your home.
- "Less Uncertainty" - if I could use but one word to describe the current real estate market (or stock market for that matter) it would be uncertainty. There are a ton of buyers out there that think they are qualified but are not. There are also plenty of examples of banks pre-qualifying individuals and then on closing day refusing to fund the buyer's loan. Most real estate agents have systems in place to ensure the buyer is pre-approved and to quantify if the buyer's lender is reputable.
- "It's Easy..." - don't confuse easy and simple. Buying and selling real estate may not be complex (it doesn't take a brain surgeon or rocket scientist), but it is not easy. Managing the procedure and paperwork can be a bit overwhelming to the average seller.
In summary, if you are able to save money with a DIY project, then I say more power to ya! But you must consider, can I really do this? As I mentioned before, when I had my carpet replaced, I did what I could to save a little money. But, I still forked over a large sum of money to pay for the carpet and have someone install it. Why? I didn't want the hassle and frustration, I knew they could do it better than me, I wanted it done in a timely manner, and not having the skills I knew it was not going to be easy.
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