Top three reasons you shouldn't "For Sale By Owner"

/ John L Scott/
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In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

Why you shouldn’t sell your own home:

1. Exposure to Prospective Buyers

The internet has not only changed the way we communicate with each other, but it has also changed the way we make buying and selling decisions not just for day to day items but important purchases as well.  94% of buyers begin their search for a home online, in contrast to only 17% looking to print newspaper ads.

Where did buyers find the home they purchased?

51% on the internet
34% from a Real Estate Agent
9% from a yard sign
1% from newspapers

The days of selling your house by just putting up a sign and placing an ad in the paper are long gone. Having a robust internet strategy is crucial. Most Real Estate Agents have an online marketing strategy to promote the sale of your home. Do you?


2. Negotiation & Paperwork

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

When it comes to the responsibility of selling a home, negotiations are not the only obligations you'll be facing. The paperwork involved in selling and buying a house has increased dramatically as industry disclosures and regulations have become mandatory. Don't prolong your home sale because you've missed a deadline.

 
3. You Can Profit More Money When Using an Agent

One of the top reasons homeowners decide to sell their home on their own is to save on a Realtor's commission. This might not be all too true. Studies have shown that the typical house sold by a homeowner sells for around $60,000 less than the average price profited by a Real Estate agent for your home. Hiring a Real Estate Agent might not make sense in Real Estate markets where home prices are lower than the national average. However, it does indicate that selling on your own might not make sense in competitive or thriving markets.

Bottom Line

Before you decide to take on the challenges of selling your home in a competitive market, take the time to sit down with a Real Estate Agent and discuss the benefits of having a professional on your side.