With home sale prices on the rise and inventory being low, a few homeowners are considering the option of trying to see their home on their own. In this industry that is known as For Sale By Owner or FSBO. There are many reasons why that may not be a good decision for a big majority of sellers.
1. MANY NEGOTIATIONS
Here is a list of some of the people to prepare to negotiate with if you decide to For Sale By Owner:
- The buyer looking to get the best deal possible
- The buyer’s agent who only represents the best interest of their buyer
- The buyer’s attorney (in some parts of the country)
- The home inspection companies, who also works for the buyer and will almost always find some problems with the house.
- The appraiser if appraisal comes back and their is a question of the homes value
Recent studies show that over 88% of buyers are searching online for their next home. That is in comparison to only 21% looking at print newspaper ads. The Lyon Group has a strong internet strategy to promote the sale of your home. Do you?
3. YOU GET RESULTS FROM THE INTERNET
Where did buyers find the home they actually purchased?
- 44% on the internet
- 33% from a Real Estate Agent
- 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. SELLING ON YOUR OWN HAS BECOME MORE DIFFICULT
The paperwork involved in selling and buying a home has increased drasticallu as industry disclosures and regulations have become mandatory. For this reason the percentage of people selling on their own 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.
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 for sale by owners 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.
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.