In today’s complex and geographically diverse real estate market, with homes selling quickly and prices rising, a homeowner might consider trying to sell their home on their own, something known in the real estate industry as a For Sale by Owner (FSBO). There are several good reasons this might not be a good idea for the vast majority of sellers.
Here are five of those reasons:
There Can Be A Lot Of People To Negotiate With Throughout the Process
Here are some of the people with whom you must be prepared to negotiate 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
The title company if there is not a clear title
Exposure to Prospective Purchasers
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. Some real estate agents have an internet strategy, with a strong emphasis on social media and social networking, and a network of real estate, mortgage, and home management peers, to promote the sale of your home, and to assist with the myriad of steps in the home selling process. Do you?
Results Come from the Internet & REALTORS®
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 proactive real estate home selling strategy and action plan is crucial.
FSBO 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 trying FSBO has dropped from 19% to 8% over the last 20+ years. The 8% share represents the lowest recorded figure since the National Association of REALTORS® (NAR) began collecting data in 1981.
You Net More Money When Using a REALTOR®
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 cannot 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 does not always mean that an agent can get $39,000 more for your home as some 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, call or text a Real Estate Advisor | REALTOR® from Martin Real Estate Advisors, a United Real Estate Company, at 469-262-5411, or just complete the GET IN TOUCH form on this page, to learn more about the difference we can make.
Content credit to Keeping Current Matters at www.keepingcurrentmatters.com