Thinking of going FSBO? For home sellers, there are two options when it comes to selling their home. They can either get assistance from a real estate agent or do it on their own (FSBO). Most sellers try to avoid working with agents because they think agents are costly. They believe by selling a house on their own, they will save some money. As much as that sounds like a good idea, there are numerous challenges associated with selling a house without the assistance of an expert.
Below are the reasons why selling FSBO is a bad idea:
Lower Selling Price
Selling a house is not as easy as many people tend to believe. Most people doing FSBO think that they will save money. However, statistics from the 2019 National Association of REALTORS® Profile of Homebuyers and Sellers reveal that people who use Realtors to sell houses are likely to fetch higher prices compared to those who choose to do it on their own. The typical For Sale By Owner home sold for $200,000 compared to $280,000 for agent assisted home sales. With the average fee for the buyer’s agent and listing agent usually being around only 6%, that’s a gain of $63,200 from using a Realtor!
As much as you think you’ll save some money by doing it on your own, you might end up losing that money, or even more through a lower selling price. Real estate agents have extensive knowledge and experience when it comes to selling homes. They are able to find clients who will purchase your home at the current market rates. Homes are usually the largest financial investment people make. Its smart to let the professionals handle it!
Longer Time to Sell a Home
Most people trying to sell homes on their own take a much longer time to find qualified buyers compared to those who use Realtors. This is because they lack experience and expertise to showcase their homes in the best light to potential buyers. The fact that most home buyers are relying on the internet to search for homes means that a strong online presence is required. Staging and photos have to be perfect, and Realtors know how to accomplish this!
Unfortunately, most people who try the FSBO route don’t have the necessary tools to generate and maintain a strong online presence. This means that the home takes longer to sell because it has few impressions and views online.
People pretending to be home buyers sometimes swindle naive sellers. The problem is that distinguishing between a genuine buyer and a scammer may be difficult. But an experienced Realtor can tell between serious buyers and those who have other ulterior motives.
The funny thing about FSBO scams is that they can go both ways – someone can pretend to be selling a home or another one can pose as a buyer when actually their intention is to scam the other party. Some will be so innocent that only a professional agent can detect if they are genuine or not.
The process of selling a home can be tedious, cumbersome, and protracted – especially if you are a newbie in the real estate industry. Most people don’t have proper negotiation skills to close a deal faster like real estate agents. Realtors have access to comparable sold properties and have experience substantiating the price during negotiations. Besides, some buyers can give sellers a headache through endless negotiations involving their attorneys and several other people. Realtors know how to handle this.
Additionally, there is also a home inspection that needs to happen before you sell a home. If you don’t have experience in negotiating are this, the process alone can be cumbersome. Agents maneuver and know how to get things done quickly.
The Seller Bears Liability
Without a licensed agent, the person selling a home pays for all the mistakes that happen during the selling process. Unfortunately, most homeowners don’t know about this. This means that if a homeowner mistakenly lists something and the buyer discovers that it isn’t there, the seller may have to pay for that mistake. However, using a licensed agent may help prevent such from happening, pointing out issues that could occur during the home selling process.
In a nutshell, selling a home through FSBO can cost you more than you think. Most people choose this route thinking that they will save some money. However, the truth is that you might end up losing more than you expected to gain. If you are thinking of selling a home in the near future, then it is best to use a Realtor. Baker Realty has qualified, experienced Realtors to guide and educate you through the process to a successful close. Contact Baker Realty today!