“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.
The Real Cost of Not Using an Agent
Think selling it yourself will save you money? Think again. Studies show that homes sold without an agent typically sell for less and take longer to sell. If you or someone you know is considering selling, go with an expert. Give us a call, we're happy to help....
How Misunderstandings about Affordability Could Cost You
Homeownership is the first rung on the ladder of financial success for most households, as their home is most often their largest asset.
3 Things To Prioritize When Selling Your House
Even in today’s market, sellers are not guaranteed success. There are some key things to know so you can avoid costly mistakes and win big.
Where Do Experts Say the Housing Market Is Heading?
Here’s a look at what some experts have to say about what will drive the industry and the economy forward in the months to come.
Sellers Are Ready To Enter the Housing Market
As the economy continues to improve and more people get vaccinated, more sellers may finally be in sight.
Don’t Forget to Budget for Closing Costs
When buying a home, it’s important to have a budget and make sure you plan ahead for certain homebuying expenses, including closing costs.