TOP 5 Reasons NOT to Sell Your Home on Your Own (FSBO)
Ah, the lure to sell your home on your own - high sales prices and the incredibly low inventory… just think of the benefits of being a FSBO! What could possibly go wrong?
FSBO, as it is known in the industry, is a For Sale By Owner and may very well not be the good idea the vast majority of sellers think it is. We’ve all read and/or written articles on this very topic for years now.
The most interesting of all of the reasons to me is that a few years ago, the OWNER of ForSaleByOwner.com could not to sell his own million-dollar home on his own so, he hired a local agent who go the job done in record time. That says it all, right? Need more reasons NOT to be a FSBO?
The top 5 reasons NOT to be a FSBO are:
1. NO Online Strategy for Prospective Buyers
NAR’s 2019 Home Buyers & Sellers Report shows that 95% of buyers search online for a home. Most real estate agents have an Internet strategy to promote the sale of your home. Do you?
2. Scheduling Issues & Safety Concerns
Scheduling appointments for ‘outside buyers’ so that you can be there is not only a lot of work and time but, dangerous for you. When you are listed with a real estate agent, a licensed, bonded agent shows their clients and customers. They access your property via a secure, infrared lockbox and you are not present. Listing on your own requires you to take on the task of showing your own home. Do you know who is on the other end of the phone, asking to show or tour your home? Are you also willing to jeopardize the lives of everyone who lives in your home - family, spouses, children, friends, fur babies? (Yes, we ARE talking serious safety issues here)
3. How Do You Negotiate With…
Have you thought of the people with whom you must be prepared to negotiate, should you decide to go For Sale By Owner?
- The buyer (who, of course, wants the best deal possible)
- The buyer’s agent (who ONLY represents the buyers’ interests)
- The buyer’s attorney
- The lender
- The appraiser
- The home inspector
- The appraiser, if there is a question of value
4. FSBO - Are You Familiar with Our Contracts?
The documentation involved in the process has changed considerably as industry disclosures and governmental regulations have become mandatory - with every single type of mortgage loan. Do you know all of the up-to-date documentation that is required to sell your home? Do you know where your liabilities lie? Do you know WHAT documentation is required to go under Contract? For the attorney to obtain the mortgage payoff? This is one of the reasons that the percentage of people who attempt to sell their home on their own has dropped from 19% to 7% over the last 20+ years.
5. YES, You DO Net More Money When Using an Agent
Ah, the real estate agent fees… Some homeowners believe that they will save the real estate commission by selling their homes on their own. Did you know that FSBOs don’t actually save anything by forgoing the help of an agent. In most cases, they actually cost themselves significant money. One of the main reasons for the price difference at the time of sale is the fact that agents network with other agents. There are also agents who won’t show FSBO homes - they don’t want to have to manage both sides of the transaction.
When relocation buyers move to the Charlotte area, they don’t drive around the city in search of FSBOs - why would they? Their agent has them set up on a search, specific to their needs; their agents are giving them professional tours of the area. When it comes to listings, most agents act as the buyers’ concierge - sorting through listings that ‘may’ fit their buyers’ needs. If they see a FSBO, they eliminate it even before the buyer sees it. Scheduling a FSBO in the middle of a showing tour, only to be told that the time isn’t convenient or the seller is late arriving home from the office to let them in, really puts a glitch in their entire schedule. It’s not worth the inconvenience to most agents.
For these reasons, you have lost a very large pool of buyers. The more buyers that view a home, the greater the chance of a bidding war on your property.
Listing on your own leaves you to manage the entire transaction yourself - AND take on all of the liability. Why do that when we have sold hundreds and hundreds of homes and know the process forward & backward? Wouldn't you rather be packing and shopping for your new home?
Before you decide to take on the challenge of selling your house on your own, let’s talk! Call or text (704) 491-3310.
© Debe Maxwell | The Maxwell House Group | RE/MAX Executive | CharlotteBroker@icloud.com | TOP 5 Reasons NOT to Sell Your Home on Your Own (FSBO)