Think Twice On For Sale By Owner

Dated: 10/28/2015

Views: 138

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The term For Sale by Owner (FSBO) best explains homeowners who consider selling their homes on their own. This might be advantageous to some homeowners but there are also advantages with this move.

Consider thinking that this may be a bad idea. Here are some reasons why:

1. Agents have better Exposure to Prospective Purchasers

According to research, 88% of buyers search online for a home. The remaining 22% will search on print newspaper ads, which does not happen very often. Real estate agents are trained to have a strategy with online buyers.

2. Negotiations are built for a few people

When you decide to do a FSBO, these are some people that you might have to negotiate with

  • The home buyer who wants the best or cheapest deal possible

  • The buyer’s agent who wouldn’t care for your interests. That agent will only be loyal to his/her client

  • In some areas, the buyer’s lawyer

  • The home inspection companies, who work for the buyer. Since they run a business, the inspection companies will almost always find some problems with the house.

  • The appraiser for your home, if value needs to be determined

3. Yes, Better Results Come from the Internet

43% on the internet

9% from a yard sign (if they are in the mood to look around the block)

1% from newspaper

It will take time to sell your house by just putting up a sign and putting it in the paper. A strong internet strategy will give better results.

4. Over the Years, FSBO has Become More Difficult

The paperwork involved is selling dramatically changed and increased over the years. Plus this is mandatory. The percentage of people doing FSBO has dropped from 19% to 9% over the last 20+ years.

5. You Net More Money when Using an Agent

Studies have shown that the typical house sold by the homeowner sells for $208,000 while the typical house sold by an agent sells for $235,000. In real life, the difference which is $27,000 is not a realistic commission paid to the buyer and seller agent combined. Their commission might only be half of $27,000.

It is better to contact a real estate agent and weigh all your options. Maybe FSBO won’t be that of an advantage for home sellers at all.

RELATED TOPIC: Your Representative in a Real Estate Transaction

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Rick Hogue

As the team leader for our group, my responsibility is to all of our clients to insure they are treated with respect and all of their needs are met. In addition I am the listing agent for the team hel....

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