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For Sale By Owner (Unrepresented Sellers) - Did You Know?

By
Real Estate Agent with Munguia Group (Keller Williams Dallas Metro North)

#dfw #texasrealestate #fsbo 

Have you thought about selling your home by yourself - as a "for sale by owner" or FSBO (or an "unrepresented seller")? It's interesting to look at the statistics compiled by the National Association of REALTORS®.

 

The reasons people decide to try to sell their home on their own usually comes down to thinking they will save money on commissions (and thus get more money in their pockets), and/or their distrust/dislike of real estate agents.

 

The "for sale by owner" trend seems to be going down, though. This year, only 8% of recent home sales were "for sale by owner", compared to 9% last year. In fact, it's the lowest share of FSBO's recorded in the 34 years that this data has been collected.

 

The data also shows that homes that actually were sold by sellers who were not represented by a real 

agent went for a lower median sales price. The median sales price of all FSBO's that sold was $210,000, compared to $245,000 for all homes. Real estate commissions would have to be over 14% of the sales price for the FSBO to get "even" on the $35,000 difference! Probably a very good reason why fewer home sellers are choosing this route.

 

Another issue is market reach. There are many websites FSBO's can use to market their home. Believe me, I know! I've been going through them to look for homes for my buyers. It is quite frustrating for a buyer to go through those sites, and then find that many of them are no longer on the market, as the status isn't regularly updated as it would be on the MLS (Multiple Listing Service that real estate agents use). When it comes down to it, the MLS has the greatest reach, as most buyers want to have someone representing their interests (and even if not, the MLS data is easily obtained from many sources by the general public).

 

Other things "unrepresented sellers" need to consider include:

  • Knowing how many different ways a buyer can terminate a contract (and get their earnest money back). In Texas, there are several "outs" for a buyer on the standard contract forms, and it can vary depending on how the form is filled out. 
  • Negotiation of the contract and of the repairs amendment, if necessary.
  • Preparing for the appraisal. What can you say, or provide, to the Appraiser, and what is not allowed? How to handle appraisals that come in low.
  • Following up with the title company, the buyer, and the buyer's lender to ensure that everyone remains on the same page regarding closing on time.

 

So, if you still choose to sell your home without representation, that is certainly your right. It just may not be in your best interests. If you happen to be in the Dallas/Fort Worth Metroplex, I'd be glad to consult with you regarding the services we provide. I am a licensed REALTOR® in Texas, and a Certified Home Selling Advisor, out of the Keller Williams Dallas Metro North office. 

 

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