With home prices on the rise and a lack of inventory in zip codes 22901 and 22911, homeowners may consider listing their home For Sale by Owner (FSBO).
Here are the top 5 reasons why that might not be the best idea:
1. Exposure to Prospective Buyers
Recent studies have shown that 95% of buyers search online for a home. That is in comparison to only 17% looking at print newspaper ads. I have an Internet strategy to promote the sale of your home. Do you?
2. Results Come from the Internet
Where did buyers find the home they actually purchased?
49% on the internet
31% from a Real Estate Agent
7% from a yard sign
1% from newspapers
The days of selling your house by simply putting up a sign and placing a classified ad in the newspaper are long gone. Having a strong Internet strategy is crucial.
3. Negotiations and Knowledge
If you list For Sale by Owner, you should be prepared to negotiate.....
.....with the Purchaser and the Purchaser's Agent - regarding: price, earnest money, closing date, closing costs, contingencies, deadlines and repairs
.....with the Appraiser - if the appraised value is lower than the agreed upon sales price, the Purchaser might not be able to get the mortgage they need to buy the home. Do you know what options are available if this happens?
4. Selling FSBO 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 selling by FSBO has dropped from 19% to 8% over the last 20+ years. The 8% share represents the lowest recorded figure since NAR began collecting data in 1981. Even the founder of ForSalebyOwner.com hired a Realtor when his condo didn't sell after 6 months on the market as a FSBO. "The condo soon attracted multiple offers and ended up closing recently for $150,000 more than the original asking price."
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.
A study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases, may be costing themselves more, by not listing with an agent. One of the main reasons for the price difference at the time of sale is:
“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”
If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.
Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?
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.
If you're thinking of selling a home in zip codes 22901 or 22911, please call 434-282-7936. Let's talk.
All information deemed reliable but not guaranteed