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5 Reasons You Shouldn’t For Sale By Owner

By
Real Estate Agent with Long & Foster Real Estate, Inc.

For Sale By OwnerSome 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

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.

Regards, Gretchen

Posted by

Gretchen Conley, Realtor®  "Your Transition Specialist" 

Keller Williams Realty Centre   *   Cell 443-676-1625

Questions about the neighborhood, the community, the market?  I'm always happy to help - Give me a call!

About the Author...This article  was provided by Gretchen Conley, a Nationally recognized Realtor, Certified Residential Specialist, and Certified Short Sale & Distressed Property Specialist.  Gretchen can be reached via e-mail at Gretchen@GretchenConley.com by cell phone or text message at 443-676-1625. Gretchen has helped many people buy and sell their home.  For Maryland real estate and homes see www.GretchenConley.com.   If you need to Short Sale your Maryland home please contact me for more information.

John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Good Wednesday morning Gretchen Conley -

You have certainly presented excellent reasons not to list one's home for sale by owner.  Bad Ju Ju.  Hiring an experienced and knowledgeable Realtor is always best! 

Apr 22, 2015 02:18 AM
Chris Webb
Nova Home Loans - Tucson, AZ
Tucson's Social Media Expert

Great post, we work with FSBO's on Marketing and it does little to help them sell their home. I still cannot figure out why people insist on bypassing a professional who specializes in servicing a need. In my business, it is funny because Agents act the same way when it comes to online marketing. They assume they know Facebook and other social networks, yet fail to see the other aspect of the job. 

Apr 22, 2015 02:21 AM
Rob Marken
Bend River Realty - Bend, OR
25+ years experience in Bend

Great points on why to not be a FSBO. Using an experienced agent can really be helpful in the long run and more cost effective. Thanks for sharing. 

Apr 22, 2015 03:53 AM
Mike Warren
Real Estate - Colorado Springs, CO

Great post Gretchen. Thanks for sharing.

Apr 22, 2015 04:10 AM
Michelle Grunberg
eXp Realty - Ijamsville, MD
When Honesty, Integrity and Loyalty Matters!

Great post Gretchen. We miss you at KWRC!!!

Apr 23, 2015 11:08 PM