Why you should Not Sell For Sale By Owner (FSBO)

Most People want to Negotiate

Some of the people you must be prepared to negotiate if you decide to sell FSBO.

The buyer who wants the best deal possible

The buyer’s agent who solely represents the best interest of the buyer

As a result of a home inspection by a buyer who will almost always find some problems with the house

An appraiser if there is a question of value

A bank in the case of a short sale

Exposure to Perspective Purchasers

Recent studies have shown most buyers search online for homes. Most real estate agents have an internet strategy to promote the sale of your home. You probably do not.

Results Come from the Internet

Where do buyers find the home they actually purchased?

43% on the internet

9% from a yard sign

1% from newspapers

The days of selling a house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy and presence is critical.

FSBO selling is 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 selling FSBO dropped significantly over the last couple decades.

Typically Net More Money by Using Real Estate Agents

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 commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $184,000 while the typical house sold by an agent sells for $230,000.  This doesn’t mean that an agent can get $46,000 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.

In the End

Before you decide to take on the challenges of selling your house on your own, consult with a real estate professional in your area and ask them what they have to offer.

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