If you’re thinking of selling a home, you might be tempted to list For Sale By Owner (FSBO) in order to save a little money on agent commission. But before you stick a “For Sale” sign in the yard, you might want to reconsider! Here’s why.
The Downsides of For Sale By Owner Real Estate
There are numerous benefits to working with an agent, and when you sell FSBO, you miss out on all those perks. During challenging times such as these, it’s especially important to have a professional on your side to help you navigate these uncertain waters. Here’s why listing For Sale By Owner might not be such a great idea.
Prioritizing safety is challenging
Are you equipped to take responsibility for the health and safety of all those who enter your home? Are you able to facilitate tours for buyers and agents that adhere to the latest industry and CDC standards of doing business?
Working with an agent ensures that your home, your family, and your guests are protected.
You probably don’t have the necessary online reach
Even before the days of social distancing, most buyers started their home search on the internet. Today, nearly 93% of buyers begin the home buying process online—which means it’s absolutely necessary for a seller to have a strong online presence. And that does not mean using a site like Zillow or Trulia to list a home.
A listing agent provides an incredible internet presence that starts with professional listing photos and extends to social media, paid ads, virtual tours, and beyond.
There are too many negotiations
One of the biggest challenges FSBO sellers face is the negotiation process. Because there are so many people involved in selling a home, there are also a lot of demands to meet, as well a lot of cross-communication happening.
A real estate agent is both trained and practiced in the art of negotiation and communication. That means they’re equipped to deal with the buyer and their agent, inspectors, appraisers, attorneys, and more.
You might choose an unqualified buyer
Finding a buyer who wants to buy your home is the first step to selling, but it’s only that—the first step. Should your buyer fail to qualify for a mortgage, your sale could, and likely will, fall through, leaving you back at square one just several weeks down the road.
An agent, however, knows what to look for, and what to ask for, in a potential buyer. Agents can also typically be more involved in the buyer’s application process, and are more likely to know when or if something falls through.
The legal side is quite complex
Selling a home from a legal standpoint is a tricky and convoluted process if you’re not familiar with it. As more and more disclosures and regulations have become mandatory, the number of requirements sellers must meet leaves a lot of room for legal trouble. In fact, this is one of the reasons FSBO-ing has decreased from 19% to 8% over the last 20 years.
You might actually make less
You might not be paying a listing agent commission on the sale of your home, but that doesn’t mean you’ll necessarily be pocketing more money in the long run. In fact, a study by Collateral Analytics noted that FSBO homes typically sell for about 6% less than homes listed by an agent.
There are a few reasons for this. Primarily, your home will receive less exposure—in other words, be seen by fewer buyers. Because you likely don’t have the online presence and network of an agent, your home simply won’t be able to compete for attention with agent-listed homes. And you should also consider that some buyers’ agents may not work directly with FSBO sellers, even further limiting your buyer pool.
Selling FSBO Can Lead to Big Mistakes!
When you sell For Sale By Owner, you are responsible for the entire transaction with little or no experience, and likely have very little idea of what’s involved in the process. You may find yourself quickly overwhelmed by juggling the full-time job of selling while still managing day-to-day life and planning a move!
Let an agent handle the details
The smart, easy, and profitable solution is to hire an agent to do all the heavy lifting for you. If you’re considering selling a home in the Triangle area of North Carolina, Linda Craft & Team would love to help. Contact us today at 919-235-0007 to learn more about how we’ll put our 350+ years of combined experience to work for you.