In today's market, with homes selling quickly and prices rising, some homeowners might 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 of those 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 PurchasersRecent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% 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 InternetWhere do buyers find the home they actually purchased? 44% on the internet 33% from a Real Estate Agent 9% from a yard sign1% 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 DifficultThe 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 8% over the last 20+ years. The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
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 $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.
Bottom LineBefore 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.
Author:JP Piccinini Phone: 480-980-9025 Dated: December 15th 2015 Views: 934 About JP: JP Piccinini is CEO and Founder of JP and Associates REALTORS (JPAR), Founder and CEO ofOdasi Real E...
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JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
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"As first time home buyers, in a new state (We are originally from NJ), we weren't really sure what route to take as far as purchasing a home. We knew no one in Texas, but really wanted our first experience to be easy and painless. My wife spent hours online looking for a Realtor, and then, stumbled upon Ivonne. She had everything we were looking for, GREAT REVIEWS and spoke our language. She promptly set us up with several viewings and worked non-stop with us to finally get us the home we were looking for in the place we wanted. She made the whole process so very easy and held our hand through the not so easy parts. We could not have asked for a better Realtor and I would highly recommend her to anyone who asks. This review/testimonial may be a bit late since our official closing was back in June, but we are just now settling into our very lovely house, and all thanks to Ivonne. GREAT JOB EBBY, GREAT JOB IVONNE, She is a keeper!"