Top 5 Reasons you Should Not FSBO
June 21, 2018 | John McLain
You Should Not FSBO

In today’s market, with home prices rising and a lack of inventory,  some homeowners may consider trying to sell their home on their own,  known in the industry as a For Sale by Owner(FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

Here are the top five reasons that you should Not FSBO:

1. Exposure to Prospective Buyers

According to the 2017 Profile of Home Buyers and Sellersfrom NAR, last year 95% of buyers search online for a home. That is in  comparison to only 15% looking at print newspaper ads. Most real estate  agents 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 just putting up a sign and putting  it in the paper are long gone. Having a strong internet strategy is  crucial.

3. There Are Too Many People to Negotiate With

Here is a listof some of the people with whom you must be prepared to negotiate if you decide to For Sale by Owner:
  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • 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 appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperworkinvolved 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 FSBOing has dropped from  19% to 8% over the last 20+ years.

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 studyby 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?

Bottom Line

Before you decide to take on the challenges of selling your house on your own, let’s get together to discuss your needs.
   
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