4 Major Cons to For Sale By Owner
The real estate market can be a tricky place. As the economy is always changing, going through highs and lows, the real estate market feels a direct effect of these changes. Licensed real estate agents are educated on the real estate market and have experience understanding the market through both the highs and the lows. This is why using a real estate agent when looking to sell a property is better than trying to sell by owner. For sale by owner (FSBO) can have its benefits in theory, such as not having to split commission with a real estate agent, and having more command of the selling process, but it definitely has cons to outweigh those pros. The difficulties that you may face in an FSBO situation can make it so that you aren’t as successful as you hoped you’d be with your sale.
A major downfall of for sale by owner is the sheer fact that you will not have any assistance from a professional. Professional, licensed real estate agents, such as those you’d find with a company like Jeff Cook Real Estate, offer knowledge, experience, and the comfort of knowing that someone is there assisting you with this sometimes physically, mentally, and emotionally draining process. Many people are hesitant to use a real estate agent because they do not want to share the profit by giving commission. However, most real estate agents will typically only charge 4%-6% of the profit from the sale. In 2017, the national average of home sales was $265,000 when a realtor was selling, and $200,000 when sold on an FSBO basis.
Another con of selling by owner is a lack of knowledge of the real estate market. Sure, you can look online for tips on how to FSBO, but having an actual professional with an education of the market can drastically help your sale. Real estate business requires a lot of negotiation and transactional skills that come with training and experience. Without having a real estate agent, it is very possible that a seller can lose out on a negotiation or not receive the proper price for the home’s worth. Real estate agents possess the knowledge to properly assess a home, provide a fair price on what to sell for, and manage the negotiations that come along, to ensure that the home sells for what it should, and not just what the buyer deems appropriate.
Often times, real estate agents will avoid showing their clients FSBO homes, just because they prefer to only work with other licensed professionals. This can make it tricky to market your home effectively in an FSBO situation. Real estate agents offer the beauty of networking and contacts, which can be exactly what you need when selling your home. Licensed real estate agents also have access to top marketing technology like, the Multiple Listing Services platform, which provides them a place to list and browse properties. This is not offered to the general public, which can make it difficult to spread awareness of your home’s sale.
Additionally, selling a home FSBO can be extremely time-consuming. Without the assistance of a real estate agent to manage the paperwork, open house showings, inspections, marketing, etc that are involved with the process of selling, the seller will be responsible for doing all of this themselves. A real estate agent can help ease your mind by handling all of the technical aspects of the sale. Furthermore, a major difficulty in the FSBO process is the emotional aspect of selling. Many people feel attached to their home, a place where they have created so many memories, so it can sometimes become tricky to remove this attachment during the selling process. For example, when showing your home, you have to be ready to have strangers enter your home and critique every area of it. You also need to be prepared for them to low-ball your offer, which in some cases, may even be insulting to you. A real estate agent manages the showing of your home, allowing you to be removed from the situation. Mixing emotions and finances when selling a home can sometimes lead to a roadblock in the development of the sale, which is why using a real estate agent can alleviate this from happening.
Overall, the cons definitely outweigh the pros when it comes to selling your home. Save yourself time, money, and stress during the taxing time of selling your home, find yourself a real estate agent to help. List your home with Jeff Cook Real Estate, to ensure that your home is sold reliably and efficiently!