Top 5 Reasons You Shouldn’t 'For Sale By Owner'
By Jeff Cook | December 22, 2015
In today's market, with homes selling quickly and for top dollar, some homeowners might consider trying to cash in on this market by selling their home on their own, also known as a For Sale by Owner. There are several reasons this might not be the best decision for the vast majority of sellers. Below is a list of the Top 5 Reasons You Shouldn’t For Sale By Owner.
1. You Will Have Too Many People To Deal With
Here is a list of some of the people you must be prepared to deal with 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.
2. You Will Have Less Exposure To Prospective Buyers
Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy and a stronger budget to promote the sale of your home than you.
3. Most Results Come From The Internet
Where do buyers find the home they actually purchased?
44% on the internet
33% from a Real Estate Agent
9% from a yard sign
1% from newspaper
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 marketing plan is crucial. A realtor will have the ability to list your home on the MLS (Multiple Listing Service) which is where other realtors go to find the perfect home for their clients.
4. Regulations Have Made FSBOing 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 paper work can be confusing and is a binding legal contract which means there are consequences if you break this contract or do not carry it out properly.
The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
5. You Actually 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.
Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can guarantee to get $39,000 more for your home. Studies have shown that people are more likely to FSBO in markets with lower price points, as FSBO homes become just part of the noise in stronger markets. It does show, however, that selling on your own home might not make sense in the current market.
Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer. Here at Jeff Cook Real Estate, we will offer a complimentary in home or over the phone evaluation to discuss all of your options to help you make an informer decision of For Sale By Owner.
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