The Four Downfalls Of "For Sale By Owner"
Posted on: 3 June 2015
You may have done a little research about selling your home and have come to the conclusion that you should just try to do it yourself. After all, you know your home and neighborhood better than any professional real estate agent could, and you can just pocket those commission fees that realtors charge. Before you make a move that you might regret, read below for four reasons why listing your home as for sale by owner (FSBO) could be a bad idea.
1. The internet sells homes.
The traditional method of sticking a for-sale sign in your yard and printing up fliers for local bulletin boards just isn't very effective in today's digital media world. A whopping 92% of buyers now use the internet for real estate shopping. Just one look at the slick listings and professionally done photographs available at most real estate sites will tell you that you simply cannot compete with the reach and marketing expertise of professional website listings.
2. You may not be saving any money at all.
Typically realtors who sell your home will collect a percentage of the selling price for their work in marketing and selling your home. But statistics indicate that they earn that commission by selling homes for an average of $230,000, compared to just $184,000 for the for-sale-by-owner properties. Moreover, buyers who target FSBO properties fully expect to pay less for those properties due to the myth of saving money on commissions.
3. Selling a house is complicated.
Selling your home isn't as easy as you may think. Sellers have to interact with multiple people and organizations, including
- Home inspectors, who are hired by the buyers and who may find problems with your home.
- Buyers who expect a bargain, since the property is a FSBO.
- Buyer's agents who work for the buyer's best interest.
- Home appraisers whose opinion of your property is a key component of the buyer getting financing, especially for government funded mortgages like FHA and VA loans.
A good real estate agent will be able to negotiate a fair solution to any issues these parties may bring up.
4. The paperwork has become more burdensome.
Thanks to the lending crisis, the paperwork, rules and restrictions on selling real estate has burgeoned. There are federally mandated disclosures, contracts, surveys, warranties, permits, titles, loan documents and much more, depending on your state and municipality. This is where a professional real estate agent earns their keep, since they can take the burden of paperwork off your shoulders and arrange for a title company to ensure that everything goes smoothly at the closing.
Don't let your desire to save money lead you to make a poor decision when it comes to selling your home. Contact a professional real estate agency, like The Gresham Group, and discuss how you can benefit from her professional expertise and get the best price for your home.
Share