Is “For Sale by Owner” a Good Idea?
The process of selling a home can be stressful. Many things have to go right to get the perfect buyer, especially if you're trying to sell quickly. On the surface, it can also seem like an expensive task. Many homeowners prefer to sell independently to avoid certain fees and costs. What homeowners don’t realize right away is that going the For Sale by Owner or “FSBO” route ends up being a waste of time and money, and could even come with some unwanted legal consequences.
On the other hand, most people do hire a real estate professional to sell their home, because they know the process can be complicated, and having a professional's expertise and knowledge is well worth it in the long run. In today’s blog, we will go over what FSBO means and why it’s not as appealing as it may sound!
What Does For Sale by Owner Mean?
While For Sale by Owner is mostly self-explanatory, there are some aspects that any seller should be aware of before pursuing it. When you sell your home on your own, you avoid commission fees while also taking on all of the work and liabilities that you would pay a real estate agent to handle.
Besides researching comparable homes in your area and determining a price for your property, you will also be responsible for your own marketing, paperwork, and legal compliance. Slipping up and making a mistake in any of these areas can lead to financial and legal consequences that could otherwise be avoided with the assistance of a real estate professional.
Does FBSO Work?
To keep it simple, taking the path of For Sale by Owner will not work out for most homeowners. The task of listing your home on your own can actually cost you more in the long run than if you hired a real estate professional.
Take this example: you paid a 6% commission to your real estate agent, which you were excited to save, but your home is likely to sell for less than 94% of its asking price if you do not work with a real estate agent in the first place. You can see that a real estate agent’s knowledge and skill set is something that can not be replaced in the transaction!
Why You Need a Realtor
If you aren’t aware already, the help of an experienced Realtor is indispensable in selling your home. Here are some key reasons why you should consider hiring a real estate professional:
Pricing & Negotiation Skills
Pricing your home isn’t as simple as it may seem. The last thing you want to do is leave money on the table that could be yours! An experienced real estate professional will perform a comparative market analysis (CMA) to accurately and competitively price your home, taking into consideration comparable homes in your area.
Some people may feel confident that they could facilitate a good negotiation, but make no mistake, negotiation is a skill that takes practice, and in the world of real estate, there are way more variables involved that the average person may not be aware of!
Marketing & Showings
If you attempt to market your home on your own, you may realize many buyers stay away from FBSO listings. You will be on your own when it comes to tackling a marketing strategy, (which is a huge factor), holding showings yourself, interacting with potential buyers, and answering their questions and concerns.
Legal Paperwork
When it comes to completing closing and transfer documents, you will wish you had a real estate professional on your team. You definitely want to avoid mistakes in this area, because it could lead to many repercussions.
The Takeaway?
Most of the many common problems associated with FSBO can be avoided entirely by hiring a knowledgeable and trustworthy real estate professional. The value they bring to the table cannot be replaced and is well worth the commission costs.
Before you consider going the FSBO route, be sure to consider these factors we mentioned above so you know the challenge you could be taking on!
Our team at 316 Realty Group strives for each and every one of our clients as if they were our own family, and we would love to assist you in a stress-free sale of your home. Contact us today and let’s work together!
