5 Reasons Why You Shouldn't Go FSBO (For Sale by Owner)
In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO).
There are several reasons why this might not be a good idea for the vast majority of sellers.
Here are the top five reasons:
1. There Are Too Many People to Negotiate With 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.
The buyer who wants the best deal possible • The buyer’s agent who solely represents the best interest of the buyer • The buyer’s attorney (in some parts of the country) • The home inspection companies, which work for the buyer and will almost always find some problems with the house • The appraiser if there is a question of value • Your bank in the case of a short sale
2. Exposure To Prospective Purchasers Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% 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 purchase? 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.
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 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 home sold by a real estate professional sells for 19% more. Studies have also 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 get together and discuss your needs.
In a recovering market, some sellers might be tempted to try and sell their home on their own (FSBO) without using the services of a real estate professional. Real estate agents are trained and experienced negotiators. In most cases, the seller is not. The seller must realize that their ability to negotiate will determine whether or not they get the best deal for themselves and their family.
List of People Seller Needs to Negotiate With
The buyer who wants the best deal possible
The buyer’s agent who solely represents the best interest of the buyer
The buyer’s notary / lawyer
The home inspection companies, which work for the buyer and will almost always find some problems with the house.
The buyer’s lender if the structure of the mortgage requires the sellers’ participation
The appraiser if there is a question of value
The title company if there are challenges with certificates of occupancy (CO) or other permits
The town or municipality if you need to get the CO permits mentioned above
The buyer’s buyer in case there are challenges on the house your buyer is selling
Your bank in the case of a short sale
Other questions you need to consider:
What if the buyer did not qualify for mortgage?
Do you know how to pre-qualify your buyer?
EMILY CHING 604.722.9655 firstname.lastname@example.org
I provide full, professional real estate services.
JOVI REALTY INC. #201 - 2010 E. 48th Ave. Vancouver, B.C. V5P 1R8 604.202.2929