Top 5 Reasons You Shouldn’t FSBO

In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). FREE DOWNLOAD: Critical Info For FSBOs

There are several reasons why this might not be a good idea for the vast majority of sellers. Here are the top five: 1. Exposure to Prospective Buyers Recent studies have shown that 95% of buyers search online for a home. That is in comparison to only 17% looking at 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? • 49% on the Internet • 31% from a Real Estate Agent • 7% from a Yard Signs • 1% from Newspapers The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial. FREE DOWNLOAD: The Ultimate Guide to Selling Your Home Fast for Top Dollar 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 More And More Difficult The paperwork involved in selling and buying a home 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 8% over the last 20+ years. The 8% share represents the lowest recorded figure since the National Association of Realtors began collecting data in 1981. 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, and in some cases, may be costing themselves more, by not listing with an agent. 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.” If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year. RELATED: Five Reasons Why You Need A Real Estate Agent To Sell Your Home Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more? YOUR TURN Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer. Did you go the FSBO route? What did you learn? Are you considering going FSBO? What questions or concerns do you have? Sound of on The Shannon McCarthy Team Facebook Page, Twitter or Instagram feeds or connect with us on LinkedIn. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for great tips for homeowners and sellers delivered straight to your inbox. You may unsubscribe at any time.