Top 5 Reasons “For Sale By Owners” Fail
Today’s real estate market is characterized by rising home prices and a lack of inventory, because of this, 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 a number of reasons why this might not be a good idea for most sellers.
1. Exposure to Prospective Buyers Recent studies have shown that 95% of buyers search online for a home. That is in comparison to only 17% looking at print newspaper ads. It takes more than an ad in the paper to reach today’s home buyer. The Hartley Team has a comprehensive digital strategy to promote the sale of our listings.
2. Results Come from the Internet Where did buyers find the home they bought?49% on the internet 31% from a Real Estate Agent 7% from a yard sign 1% from newspapers
One half of home buyers today found their home on line. Having a strong internet strategy is crucial to selling a home quickly and for the most money.
3. There Are Too Many People to Negotiate With Here is a list of just some of the people that you must be prepared to negotiate with if you decide to do it yourself:The buyer who wants the best deal possible The buyer’s agent who solely represents the best interest of the buyer The home inspector, who works for the buyer and will almost always find some problems with the house The bank’s appraiser who can have difficulty verifying the sales price in a rising market
4. FSBOing Has Become More And More Difficult The paperwork involved in selling a home has increased dramatically as legal disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped by half over the last 20+ years and is currently the lowest percentage of the market since 1981.
5. You Net More Money When Using an Agent Some homeowners think that they will save the real estate commission by selling on their own. But that is the precise reason why buyers are considering buying from an FSBO. Why else would they deal directly with a seller? The seller and buyer can’t both save the commission.
A study by Collateral Analytics revealed that FSBOs don’t actually save anything, and maybe costing themselves money, by not listing with an agent. One of the main reasons for the price difference is the relative amount of exposure an FSBO property receives compared to a property listed by a Realtor on the Multiple Listing Service. The more buyers who see a property, the more likely it is to receive more and higher offers.
If a seller won’t get more and only incur multiple headaches and potential for legal liability, why do it? If you are considering selling your home, meet with us to discuss your options. We know the neighborhood, understand the market, and have the experience to get the job done.