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 FSBO.
- The buyer who wants the best deal possible
- The buyer’s agent who solely represents the best interest of the buyer and their commission
- The buyer’s attorney (in some cases)
- The home inspection companies which work for the buyer and will almost always find some issues with the house
- The appraiser if there is a question of value
- Buyer’s Lender
- Title Company
2. Exposure to Prospective Purchasers
Recent studies have shown that 92% of buyers search online for a home. That is in comparison to only a small percentage looking at print ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?
Where do buyers find the home they actually purchased?
- 92% on the internet
- 7% from a yard sign
- 1% from print ads
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.
3. FSBOing has Become More and More Difficult
The paperwork involved in selling and buying a home has increased dramatically and become more complex.
- There are multiple types of contracts used to sell a home. Will you understand the benefits and drawbacks of each type of contract to you the seller?
- Industry disclosures and regulations have become mandatory
- There are many different ways for buyers to purchase a home, which mean different requirements and costs to the seller based on the type of financing.
- Timely execution of the contract is critical. There are a number of steps involved and each must be completed on time to ensure the sale is completed. (Escrow, Loan Application, Inspection Periods, Estimates and Repair Timelines, Loan Commitment, etc…)
These are just some of the reasons that the percentage of people FSBOing has dropped from 19% to 9% over the last 20+ years.
4. 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 commission. The seller and buyer can’t both save the commission.
Did you know that 87% percent of buyers used a real estate agent in their home search process? Agents will not show a home without a commission agreement in place with the seller. The seller traditionally pays the Buyer’s Agent commission.
Studies have shown that the typical house sold by the homeowner sells for $184,000 while the typical house sold by an agent sells for $230,000. This doesn’t mean that an agent can get $46,000 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.
There will be a clear trail of who entered your home, when and what they thought of your home. We use a secure electronic lockbox that logs all access and notifies us of access to the home. All agents accessing the lockbox have been background checked and fingerprinted. It gives you the peace of mind of who is entering your home.
When you hire a Realtor you then have access to qualified Buyers. Realtors request a copy of a pre approval or pre qualification letter stating that the Buyer is qualified to look at homes in your price range. This benefits you by eliminating the time you would spend preparing the home for unqualified Buyers and reducing the possibility of potential criminals entering your home posing as a Buyer.
Bottom Line Before you decide to take on the challenges of selling your house on your own, contact us and we will be happy to show you all that we offer and how we can make your sale a success!