Top 5 Reasons You Should Not FSBO

Dated: 07/01/2019

Views: 52

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
  • 28% from a Real Estate Agent
  • 7% from a yard sign
  • 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, sit down with a real estate professional in your marketplace to discuss your needs.

Blog author image

Lorraine Miller

If you are looking for “Professional Service with a Personal Touch,” you have found it in Lorraine Miller. Lorraine is passionate about real estate and enjoys connecting her clients to their drea....

Latest Blog Posts

How to prepare for house-hunting!

Know that there’s no “right” time to buy.If you find the perfect home now, don’t risk losing it because you’re trying to guess where the housing market and interest

Read More

November & December Fall Activities 2019

Happy Fall Wishes,If you’re like me, I’m always looking for fun activities to enjoy and to spend time with family and friends.  Our surrounding communities offer many diverse

Read More

7 Reasons you should call a Realtor® before you BUY!

REALTORS® aren’t just agents.They’re professional members of the National Association of REALTORS® and subscribe to its strict code of ethics. This is the REALTOR® difference

Read More

Tree Lighting & Holiday Events - Lake Norman & Concord/Kannapolis Areas

Can you believe Christmas really is just around the corner? I can't!To make your life just a little bit easier this Holiday season, I've compiled a list of most of the area Christmas Tree Lightings,

Read More