Know why FSBO may not be the right choice for you if you want more money from selling your home.
What does FSBO mean?
For Sale By Owner or FSBO (pronounced fizbo) is when the owner sells a property without the help of a real estate agent.
In the 2018 Profile of Home Buyers and Sellers by the National Association of Realtors, the report shows that only seven percent (7%) of recent home sales were FSBO sales. This is a decrease from last year and is the lowest share recorded since 1981.
Consider these 5 reasons why you should forego FSBO
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Time-consuming
Do you really have the time to devote to the entire selling process? Will you be able to manage your schedule for showings and answer queries from potential buyers? How about time to do all the necessary legwork?
This is where a real estate agent comes handy. You will have an expert to take care of the nitty-gritty aspects of selling your property while you continue with your everyday life.
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Too technical
How confident are you of your knowledge of real estate processes? For instance, are you familiar with the fair market value and pricing strategies of properties in the area? While there are websites that you may check for this information, real estate agents have exclusive access to data that are not readily available to these websites.
An experienced real estate agent will have your best interest in mind. His or her expertise in the local market will be able to help you make the full potential sale from your property.
Also, there are state and city required disclosures that FSBO seller may not know about and fail to provide to prospective buyers. This could result in a lengthy negotiation that hurts the sale price. If that’s not enough, it could result in an unsuccessful transaction followed by lawsuits which cost owners time, money, and stress.
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Marketing strategies
Marketing plays a big role in selling your home. Buyers often start their house hunting by going online and this is where you want to be seen. A real estate agent can guarantee you a listing on local Multi Listing System (MLS) which will provide a wider reach. You will also be provided with fool-proof staging and presentation tips to attract buyers.
On your own, you may have to shell out big money for marketing but still not reach out to the right audience.
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Right pricing
Often, the problem by doing FSBO is not pricing the property correctly.
This may be due to a lack of objectivity. As the owner of the home, you may list it at a price higher than its actual value which will turn off potential buyers.
Or worse, self-directed sellers may also fall trap to undervalue their property due to misinformation, or lack thereof. You’ll end up getting less.
An experienced real estate agent will be able to provide you with essential details like local inventory and detailed market analysis to address this issue. Your agent can also help in evaluating offers and negotiate appropriate counteroffers if need be.
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Cost
This is still the main reason why some homeowners would opt to do FSBO. They think that it is the best route to take.
They are under the impression that they will earn more from the sale (read save on commissions) by not enlisting the help of a real estate agent.
FSBO homes sold at a median of $200,000 last year which is significantly lower than the median of agent-assisted homes at $264,900 – that’s $60,000 difference.
For you to think about:
It still is your option whether you go FSBO or hire a real estate agent. If you think that you will earn more from the sale of your home by doing FSBO, then go that route. However, if you add up the marketing expenses, sweat equity & time allocation you might not save as much as you think. FSBOs typically sell for less than the selling price of other homes – potentially you lose $60,000 – $90,000. Consider talking to an experienced real estate agent to help you make the most of selling your home.
Do you have questions about selling your home? Please fill out the form below and indicate the best time for me to call you back. I would love to discuss the home selling process with you.
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