Everyone wants to save money and For Sale by Owners (FSBO) are no different. And most Do It Yourself (DIY) home sellers, a.k.a. FSBO, are confident they will be able to maximize their profits by selling without a Realtor. Many obstacles, market conditions or trends in the local market are often neglected by a FSBO due to a lack of knowledge within the industry. And the resources to adequately perform, prepare and process the contract negotiations and closings are limited versus the resources an industry expert Realtor will have at their disposal.
The ever-changing landscape of the Real Estate requirements have made selling a home privately, increasingly challenging. A record low 11% of homes are sound by owners, down 13% from 2008 – according to Hamptons.com Kathy Gurley. Of the 11%, only 42% of the sales occurring between family, friends or close acquaintances. Subtracting the homes that were not sold on the open market, only 6% were sold without professional help – the balance of the transactions were unrepresented sellers of a private transaction. One reason for this decrease is the additional workload by a private owner takes on during the day – this could potentially equate to having a second full-time job.
Most FSBOs find showing a home during the day is a large obstacle. Without an agent, the seller either plans the day around the showings and their daily work schedule. Fielding request for showings during the work day is often another distractor for any sellers. Or answering redundant questions – answers often found in the marketing material prepared by the seller originally. Without persistent follow-up, many opportunities to sell their home is often missed. Another disappointment is showing the home to buyers who are “just looking”. The stresses of managing the tasks are burdensome on a professional schedule as well as a family schedule.
Often buyers perceive a FSBO home to be much less than a home listed with an agent. An erroneous mindset by a buyer could lead to difficult conversations and potentially troublesome negotiations over price, terms and conditions. Whether you are a Do It Yourselfer – preparing taxes, representing yourself in court matters or repairing household items around your home – DIY often creates more work, cost more money and places increase liability on you.
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