Some homeowners may consider trying to sell their home without the assistance of a real estate professional, known in the industry as a For Sale by Owner (FSBO). We think there are several reasons this might not be a good idea for the vast majority of sellers.
Here are five of our reasons
1. 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 (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
- Your bank in the case of a short sale
2. Exposure to Prospective Purchasers
Recent studies have shown that 92% of buyers search online for a home. That is in comparison to only 28% looking at print newspaper ads. Most real estate agents have an extensive internet strategy to promote the sale of your home. Do you?
3. Actual Results also 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 your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.
4. FSBOing 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 9% over the last 20+ years.
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 commission. The seller and buyer can’t both save the same 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.
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.
We all know it's a Seller's Market here in North County San DIego. In fact, it's a Seller's Market across the country right now. Why? Because so many Seller's have been waiting for home values to go up before listing their homes for sale. Buyers have been waiting for 5 to 7 years for market inventory to improve. That time is now and has been on the rise for the past 9 months.
Multiple Offers and Bidding Wars are back. Good for Sellers and tough for Buyers.
Sellers who want to get the most money out of their homes in the least amount of time are using a Deadline Strategy. This is where the listing agent cites a specific deadline for offers in the listing and on marketing materials. Most deadlines are written in the confidential agent to agent remarks and not in the public listing. A home listed and entered on the Multiple Listing Service on June 1 could have a Deadline of June 7 for incoming offers.
Why does this get results and high returns for the Seller? Setting a Deadline shows confidence in the listing price and the property value. It also moves the Buyers to help them focus and take action to write their offer and usually at their highest and best.
While the Seller could receive an offer they can't resist before the Deadline and accept that offer, they usually wait to see all offers submitted by the deadline. The Seller is not bound by the Deadline and can accept whichever offer most meets their terms of price, escrow closure and the strongest buyer.
Alison Peterson, Realtor