Last week we shared a telling infographic from KeepingMattersCurrent.com which explained some of the challenges of selling your own home, often referred to as FSBO, or For Sale By Owner. This week we’re sharing 5 reasons not to go the For Sale By Owner route.
- There are too many people to negotiate with, including:
- The buyer
- The buyer’s agent who solely represents the buyer’s interests
- The buyer’s attorney, in some cases
- The home inspection company who also works for the buyer
- The appraiser if there is a question of value
- You need an online presence. Studies show that 88% of buyers search online when buying a home, compared to 21% who look at newspaper ads. That’s why so many real estate agents have an online strategy for promoting a seller’s home. Do you have an online sales strategy or expertise in online marketing of homes? Can you offer a video tour?
- Internet exposure produces results. Of those who actually buy a home, 43% say they found the home they purchased on the Internet, 9% from a yard sign, and 1% from a newspaper ad. In other words, a yard sign and a newspaper ad are not enough to sell your home.
- Selling your own home has gotten more difficult. The documentation involved in buying and selling a home has gotten more difficult, along with disclosures and regulations. This is part of the reason that the popularity of FSBO dropped from 19% to 9% in the last 20+ years.
- You make more money when using a real estate agent. One of the reasons so many people go the FSBO route is because they believe they will save themselves on the real estate commission. That may be true on the seller’s side, but the buyer’s agent will still earn a commission. Also, studies show that real estate agents can typically get a higher price for your home than you can.
The bottom line – selling your own home requires specialized knowledge and a lot of time and energy. If you don’t have the skills or time needed to do it right, you are better off working with an experienced agent who knows the market and who can do the heavy lifting.