For sale by owners.

For Sale By Owner

Want to know a dirty little secret?

FSBO is a really bad idea.

FSBO, also known as “For Sale By Owner,” is when a person decides to sell their house on their own. Many people think that going this route will save them money but did you know that FSBO sales usually take longer to sell and generally bring in less money than Realtor-involved sales?

Here’s why:

1. When shopping for a home, buyers won’t see any FSBO listings. There is very little (if any) exposure for these types of homes.

2. Without exposure for your listing, agents and buyers will not be able to see that your home is for sale. Exposure is key to getting the highest and best price for your home.

3. That said, most agents will avoid showing your property.

Professional Realtors are well aware that FSBO’s can be a difficult and painful experience. They are potentially dealing with a seller who doesn’t see the value they create, feel like they need them or even want him in the middle of the transaction. There are also legal liabilities to be concerned about, creating a vortex of unwarranted stress that generally makes the buying/selling experience a painful one.

4. A FSBO will not have access to current sales data.

This means that if an FSBO home doesn’t sell right away, the seller would have to blindly adjust the price. But wait… how will the seller know what the appropriate price would be without knowing the current sales data? (It’s a vicious circle!)

5. If an offer comes in, emotions can run high.

This is the seller’s home – maybe they’ve raised their family here. It’s a lot of money on the line, a lot of memories, and emotional attachments which is why direct seller-to-buyer deals often end in an emotional mess.

According to data from the National Association of Realtors’ 2018 Profile of Home Buyers and Sellers, “Selling a house without a Realtor typically leads to a lower sales price.”

Seeing is Believing

Hiring a Realtor means that someone else (who knows what they’re doing) and he’s not emotionally involved in the transaction will handle everything for you: listing, showings, paperwork, etc.

1. Realtors have all the right tools.

This is the career that they’ve chosen to excel in, and they are an essential factor when it comes to bargaining with buyers. REALTORS®️ work closely with many other people you or your buyer might need along the way such as inspectors, plumbers, electricians, contractors, Surveyor’s, lawyers, mortgage brokers, appraisers, Movers, cleaners… they can recommend the best in each field & will help the transaction progressed smoothly.

2. There are many components to selling a house.

This is about more than just marketing & selling it’s about: Screening potential buyers, showing your home, writing legally binding contracts, and negotiating a price and terms. Then there is inspections, Aprasials, condition removal’s, insurance, surveys, move-in/out dates to consider, mortgage documents, land transfers, and other little, teeny-tiny details that only an agent would be familiar with. And what if something doesn’t go as planned oh yeah the REALTORS®️ there to help you through that too.

Keep this in mind: mistakes or omissions in these documented details can ultimately cost you the amount (or more!) of commission you were trying to avoid in the first place.

3. Privacy, confidentiality, and fiduciary duty.

A real estate agent must take the utmost care to act in the client’s best interests. Therefore you and your information stays confidential. It’s easy as a seller talking to a potential buyer to disclose too much information and put yourself at a disadvantage when it comes to negotiations

4. Agents know what to look for in a top quality buyer

There are three types of buyers: potential buyers, qualified buyers, and serious buyers how will you know who’s who and that everyone who calls you isn’t just a looky-loo?.
There are very few people who are ready, willing and able to buy all at the same time, these are serious, qualified buyers and guess what these are people who are usually working with a real estate professional already.

5. A REALTOR’s®️ superpower is their negotiating skills: Through experience and training, an Agent is an expert in the art of negotiating.

Buyers willing to shop for sale by owners are usually bargain hunters and investors they’re looking for people selling undervalue and know how to take advantage of a FSBO’s weaknesses. Selling your home is a big financial and emotional decision. A Realtor can guide you-through the process, and since they have no emotional attachment to the home, the outcome could actually net you more money in the long run.

Bottom Line

If you’re willing and able to put up with the specifics of marketing, listing, selling, and closing on a home, then by all means, FSBO might be for you. But this could mean settling for a lower price. And is the low payoff really worth all of the work you have to put into selling your home on your own?

In the end, approximately 80% of all FSBO sellers eventually wind up choosing to sell their homes by using an agent instead.

And when you go with a Real Estate Agent, there’s a confidence and security in knowing that the person helping you buy or sell your home is ultimately there for you.

Realtors get things done the right way!