Don’t FSBO, Hire a Professional
If You Think Selling Your Home is Something to DIY, Here are 5 Reasons to Think Again
1. There are more people to negotiate with than you think
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to FSBO (For Sale By Owner):
- Prospective buyers who want the best deal they can get
- Those prospective buyers’ agents who solely represent the best interest of their respective buyer clients
- The buyer’s attorney (depending on which part of the country your home is located)
- The home inspector who works for the buyer and will most likely find some problem with the home
- The appraiser if there is a question about the value of the home
2. Exposure to prospective buyers
According to recent studies, 88% of buyers search online for their next home when compared to those looking in print and newspaper ads. On top of an established internet presence, most REALTORS® and their affiliated firms have an internet marketing strategy. What will you do to market your FSBO home online? A REALTOR® also tends to have a network of buyers or other real estate professionals with buyers searching for a new home. Who will you market to?
Pricing a home correctly before it goes on the market directly correlates with how quickly it sells. Do you know how to price your home to sell?
3. You really need an internet presence
Do you know where most buyers look to find their next home?
- 43% of buyers find their home on the internet
- 9% of buyers see the sign in the yard
- 1% of buyers find their home in the newspaper
It’s not impossible to sell your home without a good internet presence, but it is a lot more difficult to sell your home just by planting a yard sign and posting a newspaper ad. It is crucial to have a strong internet strategy in 2015.
4. Selling your home FSBO more difficult than one might think
There is a lot of paperwork involved in an ordinary real estate transaction. The more complicated the transaction, the more paperwork is required. The forms, addendums, and disclosures necessary to complete a real estate transaction vary according to state. Do you know which information is necessary to create a legally binding contract? Do you know which rights and obligations Virginia requires a homeowner to disclose to the buyer when selling their home? Furthermore, if the buyer of your home is represented, are you prepared to go up against a REALTOR® that does?
5. You’re really not saving any money!
A 6% commission sure seems like a big chunk out of your profit, doesn’t it? It’s well worth the expense in the long run. Home sellers that hire a REALTOR® statistically net more money from a real estate transaction than those who FSBO.
According to keepcurrentmatters.com, studies have shown that the typical house sold by the homeowner sells for $208,000 while the typical house sold by an agent sells for $235,000. Given this data, the FSBO’s not only didn’t save any money, but they may have lost money.
Give a REALTOR® a chance
Who knows? FSBO might be right for you. Chances are hiring a professional will save you a lot of grief and give you some piece of mind. Before you make the decision to DIY real estate, you should at least sit down with a REALTOR® and see what they have to offer.