As prices rise and homes sell fairly quickly, some homeowners try to sell their home on their own. The chance to save money is without a doubt the driving reason for most who attempt to sell their own home. For Sale by Owner, known in the industry as FSBO, may not be a good idea for most sellers. Here are five reasons:
1) THERE ARE TOO MANY PEOPLE WITH WHOM TO NEGOTIATE.
The FSBO homeowner must be prepared to negotiate with:
–> the buyer who wants the best possible deal
–> the buyer’s agent who solely represents the buyer’s best interest
–> the home inspection companies, which work for the buyer and will almost always find some kind of problem with the house
–> the appraiser if there is a question of value
2) THE HOUSE NEEDS EXPOSURE TO PROSPECTIVE PURCHASERS.
According to recent studies, 89% of buyers search online when home shopping. Only 20% look at print newspaper ads. Most real estate agents have an internet strategy and advertising budget to market their listings. Would you know how and can you afford to effectively market your home online?
3) THE INTERNET YIELDS RESULTS FOR LISTINGS.
Studies show that buyers have found their homes in the following ways:
– 44% on the internet
– 33% from a real estate agent
– 9% from a yard sign
– 1% from a newspaper ad
A strong internet strategy seems most effective today. Yard signs and want-ad listings no longer sell most houses.
4) FSBOING HAS BECOME INCREASINGLY MORE DIFFICULT.
Due to the dramatic increase in paperwork required by mandatory industry disclosures and regulations, it is far more complicated and to sell a home.
Over the last 20+ years, the percentage of people who successfully sell their own houses has dropped from 19% to 8%, the lowest recorded figure since the National Association of Realtors began collecting data in 1981.
5) SELLERS NET MORE MONEY WHEN THEY USE AN AGENT.
Some homeowners believe they will save the real estate commission by selling on their own and therefore, net more money. However, studies have shown that the typical house sold by the homeowner sells for $210,000, compared to the typical agent-sold house price of $249,000. While homeowners are more likely to FSBO in markets with lower price points, a seller is apt to close a sale for more net money with an agent.