Posted: 03 Feb 2015 04:00 AM PST by The KCM Blog and Google Inc.
Some homeowners consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers. Here are 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
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 purchased?
* 43% on the internet
* 9% from a yard sign
* 1% from newspaper
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 9% 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 house sold by the
homeowner sells for $208,000 while the typical house sold by an agent sells for
$235,000. This doesn’t mean that an agent can get $27,000 more for your home as
studies have 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, sit with a real
estate professional in your marketplace and see what they have to offer.
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