Have you ever considered trying to sell your own home? Many homeowners do, especially if the real estate market is “hot” and homes nearby are selling quickly. However, there are several reasons a For Sale By Owner (FSBO) might not be a good idea for the majority of sellers.
- Too Many People to Negotiate With – Buyer’s Agent, Home Inspection companies (which always find problems with the house) and Appraiser are just a few people you should be prepared to negotiate with if you sell your own house.
- Exposure to Prospective Buyers – Recent studies show 88% of buyers search online for a new home. Do you have an internet marketing strategy to help promote the sale of your home? Most real estate agents do and they usually begin promoting a new listing before the sign even goes in the yard.
- Best Results Come From the Internet – 43% buyers find their next home on the internet, 9% from yard signs and 1% from newspapers.
- Too Much Paperwork – The amount of paperwork involved in selling and buying a home has increased dramatically due to mandatory industry disclosures and regulations. This is one of the reasons the amount of FSBO’s has dropped from 19% to 9% over the last 20 years.
- You Net More Money When Using an Agent – Ironically most homeowners who try to sell their own house do so because they think they will save money by not paying a real estate commission. What they don’t realize is that the main reason buyers look at a FSBO is because they also believe they can save the real estate agent’s commission. But guess what? The seller and the buyer can’t both save the commission. In addition, studies have shown the typical house sold by a homeowner sells for $208,000 whereas the typical house sold by an agent sells for $235,000.
So before you decide to take on the challenges of selling your own home, you may want to chat with a real estate agent and see what they have to offer.