Home sellers have the ability to sell their property with the assistance of a real estate agent or on their own. Many sellers believe that working with a REALTOR® is the more costly option; however, I want to discuss 5 reasons why selling FSBO isn’t a good idea.
1. You’ll end up with a lower sales price.
Most sellers choose to go the FSBO route simply because they want to save money. Unfortunately, any additional profits they’re hoping for end up counteracted by an often lower selling price. According to the National Association of REALTORS®, agent-assisted home sales sell for more than FSBO homes; even when sellers pay an agent they’re still making more money on the sale of their home.
2. You won’t sell your home as quickly.
Sellers who tackle the prospect on their own often don’t have the marketing expertise to do it right. This means that the home may sit on the market longer.
3. You’ll experience a more difficult transaction.
The amount of paperwork necessary to legally sell a home has increased dramatically. All of the inspections, disclosures and other regulations can be quite overwhelming. Selling your home FSBO doesn’t make you exempt from these regulations, so you’ll have to tackle this learning curve on your own. REALTORS® have extensive experience in this area; they must study and understand all the regulations and paperwork prior to getting licensed.
4. You will have to handle all negotiations.
The home selling process can involve a number of negotiations, and most homeowners are not skilled negotiators. Not only are they going to need to negotiate with the buyer, who of course is looking for a deal, but they’ll also need to negotiate with the buyer’s agent. Without experience in negotiation, this can be incredibly stressful for the seller. A REALTOR® guides these negotiations, knowing what is worth fighting for and what is worth conceding.
Homeowners who are considering selling their home FSBO will face an uphill battle. When studies show they don’t even make a profit I encourage you to get an experienced REALTOR® involved to help you make the process significantly less stressful… and for a larger profit!