Some homeowners choose to sell their homes thinking they could save time and expenditures. The term For Sale by Owners is used in reference to properties put by the market by owners.
However, there are several reasons why deciding to do an FSBO might not be a good idea for many sellers:
1. Too Many People To Deal With
Sellers who want to sell their own homes have to prepare to meet and negotiate with different kinds of buyers, buyer’s agents, home inspections and appraisers as dictated by prospective buyers.
Scams may happen and FSBOs may even find hiring a representative which is an added expense.
2. It is Too Complicated and Difficult
The 2015 National Association of Realtors’ Profile of Home Buyers and Sellers revealed that the paperwork involved is just too much and can be daunting for owners wanting to sell their homes. Aside from the legal forms that has to be filled in, understanding them as well as customizing the contract to a one-size-fit-all can be difficult and time consuming.
3. Online Search Results More Common
Many FSBOs may not get the right selling price and get stuck in the market. Another reason for this is that more buyers find their homes in the internet:
44% on the internet
33% from a Real Estate Agent
9% from a yard sign
1% from newspaper
4. Dealing with Prospective Buyers
Most real estate agents have online marketing campaigns for their listings. FSBOs may simply rely on their circle of friends and family and also social media. But these have setbacks and limitations as well.
With technology on their side, it won’t take long before a real estate agent sells a home in their listing. A homeowner may take longer to sell.
5. Earn More Net with an Agent
Homeowners decide to sell their homes with the purpose of saving money. Little do they know that they spend a considerable chunk of money for extras like flyers, home warranty, home inspection, contracts and so on.
Studies also have shown that an FSBO in markets have lower price points.
So, before making any decisions whether to sell your home on your own or to work with an agent, contact a real estate professional, listen and see what they have to offer.