“For Sale By Owner may sound great, but here are 5 reasons why you should reconsider using a Real Estate Professional.”
Rising home prices coupled with a lack of inventory in today’s market may cause some homeowners to consider selling their home on their own (known in the industry as a For Sale By Owner). However, a FSBO might not be a good idea for the vast majority of sellers.
The top 5 reasons are listed below:
1. Online Strategy for Prospective Purchasers
Recent studies have shown that 95% of buyers search online for a home. In comparison, only 13% use 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?
- 50% on the Internet
- 7% from a yard sign
- 28% from a Real Estate Agent
- 1% from newspapers
The days of selling your house by putting up a sign and listing 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 list of 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 Increasingly Difficult
The paperwork involved in the process 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 7% 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 study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, they may actually cost themselves more. 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.”
The more buyers that view a home, the greater the chance of a bidding war for the property. The study found the difference in price between comparable homes of size and location is currently at an average of 6%.
Listing on your own leaves you to manage the entire transaction yourself. Why do that when you can hire an agent without additional cost?
Bottom Line
Before you decide to take on the challenge of selling your house on your own, let’s get together to discuss your needs.
To view original article, visit Keeping Current Matters.
$4.5 Trillion in Rent in 2010-2019
Let’s get you off the rental rollercoaster and into a home of your own. #brookhamptonrealty #whyrentwhenyoucanown #rentvsbuy #homebuying101 #homeownershipgoals #realestateadvice #rentingvsbuying
Make the Dream of Homeownership a Reality in 2020
Is homeownership on your dream list this year? If so, let’s get together to discuss how you can make that dream come true.
Top Real Estate Markets for Millennials
We use this layout for all non real estate social media posts. (ie: Grammar Pros, decorating ideas, etc.) Instructions:Each day we will create a post for Pinterest and Instagram. We can use a post from Grammar Pros or a decorating idea. Grammar...
Where Homebuyers Are Heading By Generation
A strong economy and lower mortgage rates have made it easier for many would-be buyers to get into the market.
Housing Inventory Vanishing: What Is the Impact on You?
Reports are showing that 2020 is beginning with the lowest available housing inventory in two years. What does that mean to you?
3D Virtual Tour: 21 Sheffield Lane, East Moriches
21 Sheffield Lane, East Moriches, NY 11940
Beautifully maintained Ranch!