In today’s market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.

Even if you just read the large points – it’s pretty clear that it’s way more complicated than it used to be to sell and buy a home. Lori and I are here if you have any questions before making the decision to go with an agent to sell your home and then selecting the RIGHT agent to represent you.

  • 1. There Are Too Many People to Negotiate With

The buyers won’t magically find your house. If they do find it, they will most likely have a small team of specialized professionals in place to help them get the best deal.  Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  1. The buyer who wants the best deal possible.
  2. The buyer’s agent who solely represents the best interest of the buyer.
  3. The buyer’s attorney (in some parts of the country).
  4. The home inspection companies, which work for the buyer and will almost always find some problems with the house.
  5. The appraiser if there is a question of value.
  • 2. GAINING Exposure to Prospective Purchasers

    Recent studies have shown that 89% of buyers search online for a home. And that number is climbing. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

  • 3. Results Come from the Internet
    Where do buyers find the home they actually purchased?

    1. 44% on the internet
    2. 33% from a Real Estate Agent
    3. 9% from a yard sign
    4. 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 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 8% over the last 20+ years.The 8% share represents the lowest recorded figure since NAR began collecting data in 1981. These more stringent rules and laws are in place to protect both sides. You are very vulnerable if you think you can “read up on it” and “figure it out.” One missed step in the process can spell disaster and leave you open for liability and compliance issues.

  • 5. You Net More Money when Using an Agent

    Let’s face it, you want to not only have a smooth, quick transaction, but you want to make some money. 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 can’t 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 doesn’t mean that an agent can get $39,000 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.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, let’s meet up so we can discuss the difference having an agent can make.