5 Reasons You Shouldn't For Sale By Owner

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Real Estate Agent with Realty Executives Boston West 113011

5 Reasons You Shouldn’t For Sale By Owner

5 Reasons You Shouldn't For Sale By Owner | Simplifying The Market

Some homeowners consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.

Here are five 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 For Sale By Owner:

  • 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
  • keeping the sale in tact for the time between the accepted of and managing the phone calls to all parties is consuming 

2. Exposure to Prospective Purchasers

Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet

Where do buyers find the home they actually purchased?

  • 43% on the internet
  • 9% from a yard sign
  • 1% from newspaper

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 estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $208,000 while the typical house sold by an agent sells for $235,000. This doesn’t mean that an agent can get $27,000 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.

 
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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Lise Howe 03/05/2015 12:08 PM
Topic:
Home Selling
Location:
Massachusetts Norfolk County Needham Needham Heights
Groups:
Posts to Localism
Local Expert
Luxury Home Agents

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Rainmaker
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Michael Mahoney
Century 21 - Boston, MA
Boston Realtor with Century 21

Pat Laracy Baker GREAT post. Thanks for sharing. 

Feb 03, 2015 06:41 AM #1
Rainmaker
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Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Pat. These reasons are accurate but frankly just scratch the surface. Good job.

Mar 05, 2015 09:19 PM #2
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Pat Laracy Baker

Pat Baker Dream Home Maker
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