Top 5 Reasons Not to FSBO
In today’s market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own. This is known in the industry as For Sale By Owner, or FSBO for short. There are several reasons why this may not be a good idea for most sellers.
Here are five of the most important reasons Not to FSBO.
1. There are Too Many People to Negotiate With
Here is a list of just some of the people that you must negotiate with, if you decide to FSBO:
The buyer who wants the best deal on their home
The buyer’s real estate agent, who represents the best interest of his or her buyer
The buyer’s lawyer (in some cases)
Home inspection companies
2. Exposure to Prospective Buyers is Limited
Recent studies have shown that 89% of buyers search online for a home. That compares to only 20% who are looking at print advertising, such as newspaper ads. Most Realtors® have an internet marketing strategy in place and ready to promote your home.
3. Results Come from the Internet
Here is a breakdown of where buyers actually find the homes they have purchased
44% on the internet
33% from a Realtor®/Real Estate Agent
9% from a yard sign
1% from print ad in the newspaper
4. FSBOing has Become More and More Difficult
The paperwork involved in the purchase and sale of homes has increased exponentially. Industry required regulations and disclosures are now mandatory. Due to this increase in paperwork and real estate law knowledge the percentage of people doing For Sale By Owner has dropped significantly from 19% to 8% over the last two decades.
5. You Net More Money when you Use an Agent
Many homeowners believe that by selling their own home, they are saving money by not paying commission. What they may not realize is that buyer’s looking at FSBOs are thinking the same thing. While this may be an enticing idea, the fact is that studies have shown a typical home sold by FSBO sells for $210,000, while the typical home sold by an agent sells for $249,000. While there is no guarantee that an agent will get $39,000 more for your home, it does show that with knowledge of the local area market and a network of contacts to reach out to, selling your own home may not make the best sense.
Before you make the decision to sell your home on your own, sit down with a Realtor® and talk about your options, the process, and their knowledge of your marketplace.