The Pitfalls of For Sale By Owner (FSBO) in Arizona

By
Real Estate Broker/Owner with Leagan Realty

FSBO properties have several advantages, but agents and Realtors know that the disadvantages outweigh the advantages. Figures in surveys suggest that only 6-7% of properties are sold through FSBO. If you can save thousands of dollars from FSBO, then why can’t you sell your house all by yourself?

The Pitfalls of For Sale By Owner (FSBO) in Arizona

Common Pitfalls Faced by For-Sale-By-Owners (FSBO) in Arizona:
• Seller cannot make themselves available for showings at convenient times to
buyers due to work, family, or other commitments

• Concerns over safety & security – allowing strangers in the house

• Newspaper ads alone don’t draw enough qualified buyers

• Seller over-prices home (fewer buyers, fewer offers)

• Seller under-prices home (lost potential profit)

• Seller does not have “feature sheet” or other home info for buyers to take

• Difficulty finding time to search for new home while marketing & showing
current property

Pitfalls of For Sale By Owner (FSBO) in Arizona

• Buyers are unqualified

• Buyer backs out after signing agreements

• Offers come in low since buyers know you aren’t paying a commission

• Seller doesn’t have or is unfamiliar with required forms, disclosures, and
contracts

• Negotiation of an offer and/or a counter-offer with buyer, buyer’s agent or
buyer’s lawyer

• Buyer “drags their feet” in providing documentation or signing forms, or
provides incorrect/outdated information

• Buyer does not obtain insurance in a timely manner

• Appraisal comes back too low

• No comparable sales are available for appraisal

• Buyers require extensive contingencies on price, financing, and/or property
condition

• Job change, illness, divorce or other major financial setback for buyer or seller

• Home inspection reveals something unexpected – i.e. termites, foundation
issues, radon, or other problems

• Conflict over change-of-possession date/time/conditions

• A disaster occurs (fire/flood/etc) during the process

 

If you have decided to sell your home, you have probably realized that there is more than one way to go about it. In recent years there has been much talk about the FSBO, or "for sale by owner" method of selling in Arizona. Unfortunately there are some definite disadvantages to selling your home without the aid of a trained professional. Many of these disadvantages are related to the actual "legwork" involved in the process that is normally handled by a Realtor. There are a number of aspects involved in the sale of a home with the FSBO method where owners can find themselves at a loss, literally.

One of the best assets that a Realtor or agent can offer is the surety of showing your home to qualified buyers. An agent knows that showing a home to unqualified buyers can be a waste of time for themselves and for the home seller. For this reason agents concern themselves primarily with buyers who have been pre-approved for financing. Many people who have sold their own homes have gotten the sale process tied up by a buyer who cannot secure proper financing. A contract should never be drawn up until the pre-qualification has been verified.

Another area where owners can find themselves overwhelmed is in the actual contract negotiation. Realtors and agents are trained in the execution of contracts and paperwork related to the sale of a home. This process can be amazingly complex and requires the services of attorneys, title or escrow agencies, and notaries. Contracts can be a time consuming and frustrating things to deal with properly. Are you confident enough in your ability to ensure that all aspects of the contract are correct to put your home on the line? This is not to say that it cannot be done, and done properly, simply that the process is streamlined and facilitated by a trained professional.

Remember, unless your home sells, the agent does not profit. It is in their best interests to ensure that your home sells quickly and for the best profit possible. And they can save the owner much time and heartache if things do not go as planned.

Contact Leagan Realty for a FREE evaluation and comparative Market Analysis to get the best price for your home.

Leagan Realty

Office: 480-656-7714

Cell: 480-766-2115 

info@LeaganRealty.com

SHOP THE MLS FREE AT: http://www.LeaganRealty.com

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pitfalls of for sale by owner fsbo in arizona

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