In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.
Here are the top five reasons:
1. Exposure to Prospective Buyers
Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. The Monica Betancourt Group has a comprehensive internet strategy to promote the sale of your home through different web outlets, as well as through other well-known mediums, such as print. Do you?
2. Results Come from the Internet
Where did buyers find the home they actually purchased?
•44% on the internet
•33% from a Real Estate Agent
•9% from a yard sign
•1% from newspapers
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 strategy is crucial.
3. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to FSBO:
•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
•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
4. FSBO-ing Has Become 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 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
5. You 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 and get away with a low ball offer.
Studies have shown that the typical house sold by the homeowner sells for less than the typical house sold by an agent. This doesn’t mean that an agent can get more money than what your home is worth. However, it does show that selling on your own might not make sense.
Before you decide to take on the challenges of selling your house on your own, contact the Monica Betancourt Group and see what we have to offer.