Selling Your House? 5 Reasons to be a For Sale By Owner
With homes selling quickly and prices rising, some homeowners may try to sell their home on their own, known as a For Sale by Owner (FSBO). There are several fun issues for the vast majority of sellers. Here are five:
- You Can Negotiate With A Wide Selection of Fun People
You will meet many types of buyers and professionals, all can mess with your price:
- Buyers want the best deal possible – want the commission too
- Buyer’s agents solely represent the best interest of the buyers
- Buyer’s attorneys usually mean you need your own
- Home inspection companies get paid to find problems with the house
- Appraisers most often don’t know the immediate neighborhood
- Exposure to Prospective Purchasers
Recent studies have shown 90% of buyers search online for homes. Only 20% looking at print newspaper ads, mostly at the agents. Real estate agents have internet strategies to promote the sale of your home. Do you?
- Results Come from the Internet
Where do buyers find the home they actually purchased?
- 44% on the internet
- 33% from a Real Estate Agent
- 9% from a yard sign
- 1% from newspaper
- (nearly data comes right off Multiple Listing Service)
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.
- FSBO Offers Wonderful Challenges
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 going FSBO has dropped from 19% to 8% over the last 20+ years. The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
- You Can Negotiate the Saved Commission with Buyers
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, nationally, the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 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.
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. Maybe they will buy you coffee!