Be Wary of Pitfalls in FSBO Market
Selling homes is difficult. Save money and time by choosing real estate professionals
As home prices continue to rise while inventory available in today's markets continue to decline, it is no wonder many homeowners are intrigued by the notion of being able to sell the houses without the use of a agent. This market is called For Sale by Owner (FSBO) and while many homeowners may find this option intriguing, most who have tried it discover it is challenging and difficult process to undertake.
While it is always a temptation to marginalise the cost of selling the home in an effort to maximize the profits its sale will bring. Unfortunately, a vast number of homeowners who consider doing so consider doing so are guilty of oversimplifying the process in pursuit of the course they are about the undertake. It is somewhat telling that most homeowners only make this mistake once. Here is a list that I have compiled have the top 5 reasons choosing the FSBO option is not, for most people, the ideal course to take.
Here are the top 5 reasons not to FSBO:
- Online Strategy for Prospective Purchasers - Studies have shown that 93% of buyers search online for a home. That’s a pretty staggering number! While most real estate agents have creative and proven Internet strategies for selling your home it is doubtful you can have the same resources. The days of selling your house by putting up a sign in your yard or placing an ad in the paper are long gone. According to NAR, only 7% of all homebuyers discovered their purchase thru printed media or yard signs.
- There Are Too Many People to Negotiate With. A brief list of some of the people with whom you must be prepared to negotiate if you decide to FSBO you may very likely find yourself dealing with the buyer his agent, the buyers attorney, home inspection companies an appraisal companies. In many cases you will find yourself dealing with people who have a fiduciary responsibility to represent the best interest of the clients and not necessarily you.
- The paperwork involved in buying or selling a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
- You Net More Money When Using an Agent - Many homeowners believe they’ll save the real estate commission by selling on their own, but the seller and buyer can’t both save the commission.
A report by Zillow revealed that FSBOs are inclined to do so because they believe it will save money, but they don’t actually save anything, and eventually end up listing with an agent.
Of the 35% of sellers that, from the onset, attempted to sell their homes on their own, 25% of sellers actually ultimately ended up working with real estate professionals. Regardless your reason, it appears working with a real estate professional is the best answer.
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