Some sellers think that selling “For Sale By Owner” (FSBO) will save them thousands of dollars by not paying agents’ commission. However, there are several reasons why pursuing a FSBO might not be a good idea.
- FSBO Homes Pricing Problems- One of the most common reasons FSBO don’t sell is because homeowners tend to overprice their homes. They are not aware of the current housing prices and changing market conditions as well as an experienced Realtor. Real estate agents, however, have an understanding of the current market conditions and data about recent sales in your neighborhood that can be used to price your home appropriately.
- FSBO Marketing vs. Realtor Marketing- Homeowners often underestimate the time and work that goes into marketing a home. Agents are experts in marketing homes. They can pool resources to maximize exposure and have marketing budgets where homeowners usually don’t have. With their experience, they have an idea what type of marketing will work to sell your home in the shortest amount of time for the most money.
- Tricky Negotiation and Legal Paperwork- Homeowners don’t understand the paperwork involved in the sale of a home. Often, they are unaware of the mandatory industry disclosures and regulations, which can lead to costly legal problems. An experienced real estate agent knows what to do to address standard real estate contracts, closing documents, and appraisal issues. They can handle all the delicate nuances of negotiations between sellers and buyers. Having no emotional attachment to the house means real estate agents can be nonsubjective and negotiate the sale of the house effectively.It doesn’t come as a surprise anymore that the percentage of people doing FSBO have dropped down from 19% to 9% over the two decades.
The typical FSBO home sold for $184,000 compared to $230,000 for agent-assisted home sales. Before making the jump to becoming a FSBO seller, sit down with a real estate professional so they can answer any questions you may have about getting your home sold. A qualified real estate agent brings expertise to a complex transaction with many legal and financial pitfalls.