In today’s market, withhome prices risingand alack of inventory, some homeowners may consider trying to sell their homes 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.
Here are the top five reasons:
1. Exposure to Prospective Buyers
Recentstudieshave shown that 94% of buyers search online for a home. That is in comparison to only 16% looking at 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 homes they actually purchased?
51% on the internet
34% from a Real Estate Agent
8% from a yard sign
1% from newspapers
The days of selling your house by just putting up a sign and putting 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 More And More Difficult
The paperwork involved in selling and buying a home 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 8% over the last 20+ years.
The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
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.
Studieshave shown that the typical house sold by the homeowner sells for $185,000, while the typical house sold by an agent sells for $245,000. This doesn’t mean that an agent can get $60,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.
Before you decide to take on the challenges of selling your house on your own, let’s get together and discuss the options available in your market today.
Author:Connie White Phone: 843-532-3356 Dated: July 20th 2017 Views: 143 About Connie: My personal venture into real estate was driven by the desire to provide an enjoyable environme...
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"Connie White recently helped me sell my home in West Ashley. A friend used a Realtor in NC and had a good experience, so when I needed to put my home up for sale, I searched the internet and an amazing website which put me in contact with Connie. That was the best possible bit of luck! My father and I owned the home together, so all decisions had to be made by us plus my husband, and none of us live in the Charleston area. With little money to do any repairs or updating to the home, Connie really had a very difficult task. She was absolutely wonderful to work with, patiently working with us and counseling us what to do to sell the property. She stayed in constant contact with updates and followed up with potential buyers in a timely way. I would highly recommend her to anyone looking to sell a home and am happy to be a reference if ever needed.