“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.
3 Ways You’ll Win When You Buy a Home This Year
There are so many great reasons to purchase a home, and over the past year, we’ve realized more of them than we ever thought possible.
Reasons to Hire a Real Estate Professional [INFOGRAPHIC]
The right agent can explain current market conditions and break down exactly what they mean for you.
The Luxury Market Is Attracting Buyers in 2021
It appears that some higher-priced markets may have more homes to choose from than those at lower price points.
3 Reasons We’re Definitely Not in a Housing Bubble
Housing supply is at a historic low. Demand is real. Homeowners have enough equity to be able to weather a dip in home values.
6 Foundational Benefits of Homeownership Today
As we think about the future and what we want to achieve beyond 2021, it’s a great time to look at the benefits of owning a home.
Do I Really Need a 20% Down Payment to Buy a Home?
Be sure to work with trusted professionals from the start to learn what you may qualify for in the homebuying process.