In today’s market, with home prices rising and a lack of inventory,
some homeowners may consider trying to sell their home on their own,
known in the industry as a For Sale by Owner (FSBO). There are several
reasons why this might not be a good idea for the vast majority of
Here are the top five reasons:
1. Exposure to Prospective Buyers
studies have shown that 94% of buyers search online for a home. That is
in comparison to only 17% looking at print newspaper ads. Most real
estate agents have an internet strategy to promote the sale of your
home. Do you?
2. Results Come from the Internet
Where did buyers find the home they actually purchased?
51% on the internet
34% from a Real Estate Agent
9% from a yard sign
1% from newspapers
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. 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
4. FSBOing Has Become More And More Difficult
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
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
$185,000, while the typical house sold by an agent sells for $245,000.
This doesn’t mean that an agent can get $60,000 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.
decide to take on the challenges of selling your house on your own,
let’s get together and discuss the options available in your market