What For Sale By Owners May Not Know Can Hurt Them.
Some homeowners consider trying to sell their homes on their own. To those in the industry this is known as a FSBO. Realtors and real estate agents know going this route isn't a particularly good idea for a vast majority of sellers. Here's why.
Too many moving parts/people to negotiate with: Here is just a few of the people involved in a real estate transaction which you will negotiate with, communicate with, need something from etc...
The buyers who will want the best possible deal, the buyers agent who solely represents the best interest of the buyer.
The buyers attorney or title company, the home inspector who works for the buyer, the appraiser, the lender or bank doing the financing, your bank in case of a short sale.
Exposure to the market and getting the word out there:
So you've decided to sell your house yourself. How are you marketing it? A lawn sign and a printed advertisement in the newspaper doesn't cut it anymore. Word of mouth? Open houses? Are you going to pre-screen those walking through your home?
According to National Association of Realtor's recent studies show that 92% of buyers (I think it may be higher now) search for their homes on the internet. Most real estate agents have a internet strategy and marketing techniques specifically designed to attract buyers and promote the sale of your home. Do you have this?
Google, Bing & Yahoo...oh my!:
Where do buyers find the home they actually purchased? 43% on the internet, 9% from yard signs and 1% from printed newspaper ads. The days of putting up a sign and putting it in the paper are long gone. It's crucial to have a strong internet strategy.
Realtor's and real estate agents have the best and newest technologies at their fingertips. We know where the buyers are, and we know that buyers are working with us to help them find their new homes.
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 FSBO's have dropped drastically over the last few years.
I can net you more money and get you where you want to be quicker:
Many homeowners believe they will save the commission by selling on their own. Realize the main reason buyers look at FSBO's is to also "save money" and "get the best deal" by paying less for the home. The seller and the buyer can't both win.
Studies have shown that the typical house sold by the homeowner sells for $184,000 while the typical house sold by a agent sells for $230,000. This doesn't mean that an agent can get $46,000 more for your home, it means that people are more likely to FSBO in markets with lower price points.
Before you decide to take on the challenges of selling your home on your own. Do yourself a favor, sit down with a real estate professional in your marketplace and see what they have to offer. It doesn't cost you a penny to listen and learn.