Home prices continue to rise along with a shortage of inventory. It’s not hard to see why some homeowners these days would be tempted to sell their property on their own.In the real estate
Top 5 Reasons You Shouldn't FSBO
Home prices continue to rise along with a shortage of inventory. It’s not hard to see why some homeowners these days would be tempted to sell their property on their own.
In the real estate industry, we call this an FSBO, short form for ‘For Sale by Owner.’ While some go on to make good sales, the vast majority of sellers often end up with one or more regrets.
If you’re contemplating selling your home by yourself, here are five of the most common reasons that can work against your chances of getting the best out of the transaction ahead.
1.Limited access to potential buyers
A whopping 95% of buyers took to the internet to search for a home, according to the National Association of Realtor’s 2017 Profile of Home Buyers & Sellers. Contrastingly, only 15% checked newsprints and magazines. While many agents have proven and time-tested internet marketing strategies on the ground, the average home seller does not. Without access to a vast pool of prospects, how do you expect to land the best deals?
2. Lack of proven internet strategies
Almost half of the homebuyers find the home they eventually purchased on the internet. 31% of homebuyers also got theirs from real estate agents. Yard signs and newspaper ads accounted for only 7% and 1% respectively. A marketing strategy is essential and only experienced realtors can boast of tested and proven strategies.
3. Less than stellar negotiation skills
So you’ll be selling your home all by yourself? Get ready to negotiate with;
· The buyer who expects nothing but the best possible deal
· The buyer’s agent who is all out for the interest of his/her client
· Buyer’s attorney in some cases
· Home inspectors who can exaggerate little issues to look like big problems, and
· The appraiser as well, should there be a need to question your view of the property’s value
Now, without a superb negotiating prowess, you’ll hardly come out at the end of this deal, a happy and satisfied seller.
4. Selling your home by yourself has got more difficult than ever
The paperwork and all the legalities and complexities of real estate sales have increased over the years. This is in part due to stringent regulations and disclosures that have become mandatory. Over the past two decades, more than half of sellers who prefer to sell by themselves have dropped from 19% to about 8%.
5. An agent helps you make more money from your sales
The most common reasons many homeowners consider when thinking about FSBO is the misconception that this will save them more money since they won’t have to pay real estate agent’s commission. But this is far from the truth.
Collateral Analytics carried out research, and the facts revealed that you actually wouldn’t save anything with an FSBO. In some cases, you may even lose more when you’re selling without an agent.
There seems to be a price difference between homes for sale by owners and homes listed with an agent. This is because properties listed with real estate brokers who belong to a local MLS usually have a far broader reach.
These properties are often listed on many other participating broker websites, so they get to be seen by a huge pool of prospective buyers. With such a wide audience, your chances of getting multiple bids or even a bidding war become significantly increased. The study by Collateral Analytics showed that as much as a 6% price difference could be seen in comparable properties as of this year.
Listing with an agent means you’ll be effectively taking out a lot of problems and responsibilities off your shoulder. Additionally, you’ll be on course to get a better deal due to the broader reach of your real estate agent, the proven and time-tested marketing techniques, as well as a superior negotiating skill.
So, why go the hard way when this will probably even make you money? Before you decide to go this tough road alone, let’s reason together and discuss the options before you.
We can help you sell your property, faster, and even for more! Please call us at (954) 980-0006.
Delivering an Exceptional Real Estate Experience Damion Johnson is a residential real estate professional who works with his clients as a trusted advisor. You can count on him for his honesty, integr....
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