Selling Your Home? 8 Reasons Not To Be A For Sale By Owner

By
Real Estate Agent with Coldwell Banker Residential Brokerage

 

Don't Be Tempted To Be A FSBO (For Sale By Owner) Home Seller

 

It might be tempting to try to sell your home as a For Sale By Owner (FSBO) because you think you'll net more money from the sale. But is it really worth listing your home for sale without an agent? Here are 8 reasons NOT to be a For Sale By Owner (FSBO) and one of them is that you'll actually net more money by working with a real estate professional.

 

Today’s real estate market is highly competitive and highly complex. Selling a home is not something you want to do as a "do-it-yourself" project. Working with a real estate professional to guide you through the process is a simple (and cost-effective!) step that will give you a huge advantage!

 

Do Not FSBO!In today’s market, as home prices rise and a lack of inventory continues, some homeowners may consider trying to sell their homes on their own, known in the industry as a For Sale by Owner (FSBO). Selling your home on your own as a FSBO might seem like a good way to "save" money, but at the end of the day it might cost you more than using a professional to help you sell.  

 

8 Reasons Not To Be A For Sale By Owner Seller

 

1. Exposure to Prospective Buyers

With 95% of buyers searching online for their new homes it's critical to have an internet marketing strategy for a home. The right real estate agent will have an internet strategy to promote your home. Do/can you have a broad-based internet marketing strategy to expose your home to the widest possible audience? 

 

Internet Marketing Wins The Home Showing

 

Furthermore, do you have the resources and/or experience to stage your home, retain professional photographers, write marketing copy, publish marketing material, etc. to engage the interest of prospective buyers?  

 

2. Results Come from the Internet

Where did buyers find the homes they actually purchased?

  • 50% on the Internet
  • 28% from a real estate agent
  • 7% from a yard sign
  • 1% from newspapers

The days of selling your house by putting out a lawn sign or putting an ad in the paper are long gone. Having a strong internet marketing strategy is crucial to selling a home quickly and at top dollar.  

 

3. There Are Too Many People to Negotiate With

Lots of people to negotiate with when you FSBOSome of the many people with whom you must be prepared to negotiate if you decide to be a For Sale by Owner, include:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interests of the buyer (besides, if the buyer has representations, why shouldn't you?)
  • 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 termite company if there are challenges
  • The buyer’s lender if the structure of the mortgage requires the sellers’ participation
  • The appraiser if there is a question of value
  • The title company if there are challenges with certificates of occupancy (CO), encroachment issues or other permits
  • The town or municipality if you need to get the CO permits mentioned above

 

4. Being A FSBO Seller Has Become Complex

Seller Disclosures When You FSBOThe paperwork involved in selling a home has increased dramatically as industry disclosures and regulations have become mandatory. Potential liabilities for a home seller have increased hugely. This is one of the primary reasons that the percentage of home sellers who FSBO has dropped from 19% to 7% over the last 20+ years.

 

Do you even know all the disclosure and contract forms that are required and how to properly prepare them? There are over 230 possible steps that need to happen during the course of every successful real estate transaction.

 

Don’t you want someone who has been there before, someone who knows what these steps and actions are, someone who can guide you through all the steps to ensure you don't make a mis-step that can derail the sale of your home?  

 

 

5. You'll Net More Money When Using an Agent

Many homeowners believe that they can save on the real estate commission by selling on their own, but they don’t realize that the main reason buyers look at a FSBO home is because they also believe that they can save on the real estate agent’s commission. The seller and buyer can’t both save the commission. Reasons Not To Be A FSBO (For Sale By Owner)

 

study by Collateral Analytics revealed that FSBO's 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 that, “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.” 

 

The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.

 

And, while it may seem counter-intuitive, studies have shown that homes typically sell for more money when handled by a real estate professional. Research by the National Association of Realtors in their 2018 Profile of Home Buyers and Sellers revealed that, “the median selling price for all FSBO homes was $200,000 last year. However, homes that were sold with the assistance of an agent had a median selling price of $264,900 – nearly $65,000 more for the typical home sale.” Why choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?  

 

6. You Need A Skilled Negotiator

Having a skilled and experienced negotiator on your side could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.  

 

7. What Is The Home You're Selling Worth In Today's Market?

There's so much information on the news and on the internet about home sales, prices, and market demand. How do you know what’s going on specifically in your area? Real estate values and demand for homes are very much "local," if not "hyper-local."

 

An experienced real estate agent should be your primary resource to competitively and correctly price your home at the beginning of the selling process. Hiring an agent who has his or her finger on the pulse of the local market will enhance your selling experience and ensure a higher sale price. And, you need someone who is going to tell you the truth, not just what they think you want to hear.  

 

8. Security Issues When You FSBO

Have you considered how to keep your home and family safe when showing it to strangers? How would you vet prospective buyers when they call for an appointment. Keep in mind that when you agree to show your home as a FSBO, you are letting strangers into your home. How safe are you? Are those strangers "real" buyers or simply "casing" your home?

 

With an agent you have the comfort of knowing that buyers who come to see your home have been vetted not just for safety, but also for their financial ability to purchase a home.  

 

 

The Bottom Line About Being A For Sale By Owner Seller

Today’s real estate market is highly competitive and highly complex. Selling a home is not something you want to do as a "do-it-yourself" project. Working with a real estate professional to guide you through the process is a simple (and cost-effective!) - step that will give you a huge advantage!

 

 

Infographic: Is It Worth Listing Your Home Without An Agent?

 

Selling FSBO or With An Agent

 

 

Thinking About Selling Your Home? FREE Home Seller Guide

 

To receive your FREE copy of our Winter 2019 Home Seller Guide: "Things To Consider When Selling Your House," click here or on the image below. You may be wondering if prices are projected to rise or fall…or how much competition you may be facing in your market. Our FREE Seller Guide will answer many of your questions and probably also bring up a few things you haven’t even thought about yet.

 

 

Wondering What Your Charlotte Area Home Is Worth In Today's Market?

Wondering what your Charlotte area home is worth in today's market? Find out by clicking on the picture below.  

If you're thinking about selling your Southwest Charlotte area home, let's get together and discuss the supply conditions in your neighborhood and how we can assist you in gaining access to buyers who area ready, willing, and able to buy now.

  How Much Is My Charlotte Area Home Worth  

Contact us if you'd like to receive our Neighborhood Analyzer Report on a monthly basis so you can keep track of home sales activity in your neighborhood.

We're happy to provide this information with no obligation on your part.

 

 

 Nina Hollander and Carolinas Realty Partners with Coldwell Banker Residential Brokerage, are your Charlotte metro area residential real estate experts. We've been opening doors for home sellers in the Charlotte region for over 20 years.

 

If you're considering selling your Charlotte metro area home, I'd love an opportunity to earn your business, exceed your expectations, and to show you how:

 "The Right Broker Makes All The Difference."

  

 

Great Homes In Charlotte

 

 

First published at: https://greathomesincharlotte.com/selling/selling-your-home-8-reasons-not-to-fsbo /  

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SEARCH ALL CHARLOTTE METRO AREA HOMES HERE

 

 Nina Hollander, RE/MAX Broker, Realtor

 

 

 

 

 

 

Nina Hollander

Broker, Realtor, MBA, GRI, ABR, SRES, CDPE, SFR, SPS, CMRS
Carolinas Realty Partners with Coldwell Banker Residential Brokerage
Direct: 704-779-0813
Website: www.GreatHomesInCharlotte.com
Blog: News You Can Use From Charlotte/Ballantyne/Waxhaw/Fort Mill
Search For All Charlotte Area Homes: www.GreatHomesInCharlotte.com 

2007 - 2019 Charlotte Magazine 5-Star Customer Satisfaction Award Winner

 

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Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice.  For legal advice see an attorney.   For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.

 

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Rainmaker
3,098,519
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hannah Williams thanks, Hannah. Of course, there will always be those who think they can outsmart the professionals. Some figure it out and hire us and others just limp along.

Jan 26, 2019 03:25 PM #38
Rainmaker
3,098,519
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Debb Janes EcoBroker and Bernie Stea JD hi Debb... our younger daughter learned her lesson the hard way when they moved from Iowa to Colorado and she was a FSBO. When they sold their home earlier this year in Colorado, she asked me for a referral to a top agent! 

Jan 26, 2019 03:26 PM #39
Rainer
50,645
Ken Jones, Realtor
Realty ONE Group Central - Freehold, NJ
Adult Community Specialist

Nina Hollander When ever is see the acronym FSBO, I think: For Sale By Oblivious since most of them have absolutely no idea what they're doing.

Worse yet, is they have no idea of the complexity of what they're involved with.

Jan 27, 2019 06:42 AM #40
Rainmaker
3,098,519
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Ken Jones that's a good one, Ken. I never thought of it that way, but oblivious is perfect!

Jan 27, 2019 07:03 AM #41
Rainmaker
318,628
Ron Tissier
Chapman Hall Premier Realtors (404) 580-9069 - Atlanta, GA
Defining Homes. Defining Lifestyles.

As a professional Realtor with 20 years under my hat, I agree with you Nina.  However, these arguments don't hold much water with FSBO Sellers today in my market because many of them recently have been/are successful at selling on their own.

I've missed two opportunities days apart with FSBOs where I had appoinments set and before I could get face to face with them their homes were under contract.

With all the legit info online that a Seller could ever want, pit falls are minimized.  Nine times out of ten, a selling agent is the one that brings a Buyer and that agent is guiding all parties through the process to the closing table.  If not that agent, then the title companies or closing attorneys are doing it.  So are they really going it alone?  Sellers are saving money because they're only paying 3% to one Broker vs. the full 6 or 7%.

Perhaps as the shift to more balanced markets continues, the FSBOs success will diminish.

Cheers!   

 

Jan 27, 2019 07:34 AM #42
Rainmaker
482,047
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

Thanks for sharing these reasons for not selling as a For Sale By Owner, Nina Hollander. There certainly are many considerations to selling & buying a home and having someone experienced to guide the process is worth it to most. Great idea to look thru the booklet as well.
Bruce.

 

Jan 27, 2019 08:24 AM #43
Rainmaker
3,098,519
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Bruce Kunz thanks, Bruce, for stopping by and reading my post... wishing you a wonderful week to come.

Jan 27, 2019 10:15 AM #44
Rainmaker
3,098,519
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Ron Tissier hi Ron... I suppose it does depend on individual markets. I see very few FSBO signs in mine and when I do, usually within two weeks I see a Realtor's sign replacing it.

Jan 27, 2019 10:16 AM #45
Ambassador
3,991,929
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Nina

I'm not sure what else could be said to convince a seller that selling without representation is in their best interest. I see very few For Sale by Owner signs in my area - maybe they all rely on the FSBO sites to sell!?

Jeff

Jan 27, 2019 11:32 AM #46
Rainmaker
1,498,754
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi Nina Hollander, most for sale by owners end up listing with a Realtor after losing so much time, money and their freedom while trying to show their home to mostly agents. You did a great job with this post, congratulations on the well-deserved feature.

Jan 27, 2019 11:54 AM #47
Rainmaker
3,338,379
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Nina - in the balance sheet of life, selling with an agent makes more sense. 

Jan 27, 2019 12:13 PM #48
Rainmaker
3,098,519
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Jeff Dowler, CRS hi Jeff... everyone I know who's used that FSBO site, including the developer of it, failed to sell their home and listed with an agent to get it sold.

Jan 27, 2019 01:22 PM #49
Rainmaker
3,098,519
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Beth Atalay thanks, Beth. Same here... we don't have a lot of FSBO's in the areas I work and when there is one usually in about 2-3 weeks I see an agent's sign go up.

Jan 27, 2019 01:23 PM #50
Rainmaker
3,098,519
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Michael Jacobs hi Michael... all I know is that if I weren't a broker, myself, in 100 years I'd never be a FSBO. Doing this for 25 years has taught me well!

Jan 27, 2019 01:24 PM #51
Rainmaker
3,817,305
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good afternoon Nina Hollander ,

Congratulations on the well deserved featured post. This is a good one..if these 8 reasons can't convince one from trying to sell their home by themselves than nothing will convince them!

Jan 27, 2019 02:14 PM #52
Rainmaker
3,098,519
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Dorie Dillard CRS GRI ABR you're right, Dorie. At that point all you can say to someone determined to be a FSBO is "go with God."

Jan 27, 2019 02:43 PM #53
Rainmaker
457,130
Michael Eisenberg
eXp Realty - Bellingham, WA
Bellingham Real Estate Guy

Wow Nina, A very thorough arguement for hiring a pro to get your home sold.

Jan 27, 2019 04:20 PM #54
Rainmaker
3,098,519
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Michael Eisenberg hi Michael... thanks. They say long posts are good for SEO, so I'm trying.

Jan 28, 2019 05:05 AM #56
Rainmaker
1,139,215
Joyce Marsh
Regal | Christie's International Real Estate - Orlando, FL
Regional Manager Regal Christie's Int'l Realty

I don’t see many FSBO signs in my area, but like you when I do the majority of the time it’s replaced by a realtors sign shortly thereafter. Some have success but the majority find out its way more work than they originally anticipated. Congratulations on the feature Nina. 

Feb 01, 2019 12:17 PM #58
Rainmaker
3,098,519
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Joyce Marsh, Daytona Ormond Beach Florida thanks, Joyce. I think part of the problem is that good agents make it all look so easy that homeowners don't realize what has to happen behind the scenes to make it all work out.

Feb 02, 2019 05:30 AM #59
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