Is For Sale by Owner Right for You?
In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their homes 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 sellers.
Here are the top five reasons:
1. Exposure to Prospective Buyers
Recent studies have shown that 94% of buyers search online for a home. That is in comparison to only 16% 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 homes they actually purchased?
- 51% on the internet
- 34% from a Real Estate Agent
- 8% from a yard sign
- 1% from newspapers
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.
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
Thinking of selling it yourself to save money?
In the current financial state and housing slump, many Washtenaw County homeowners need to sell their Ann Arbor area homes and are considering for sale by owner (fsbo) to save on Realtor commissions. It is possible to sell your home yourself, but why deal with the time and headache. Here are just a few reasons it pays to use a trained professional.
Reason #1: Real Estate Expertise. A real estate agent has the knowledge and expertise to guide you through the entire home selling process. This includes determining an accurate sales price, qualifying prospective purchasers, knowing the proper inspections required, communicating with the banks and title companies, making sure you understand all paperwork, protecting your best interest when it comes to a legal contract, and much more. A Realtor can evaluate your home’s current condition and recommend what to do to get it in top selling condition, helping you avoid costly projects that don’t pay off. If you don’t have the knowledge and skill to put a new roof on your house, would you attempt it or hire a trusted professional?
Reason #2: Accurate Market Analysis. Correctly pricing a home is a science with many factors affecting the list price. Realtors have access to the local multiple list service where they can not only view your competition, but what similar homes have sold for. A realtor with a strong network can find out more than just a sales price, they can find out how many price reductions there have been; what factors influenced the final sales price, ie. needed repairs; the sellers specific situation; any concessions given to the purchaser; and more. To entice buyers to view your home without an agent representing them, you need to price your home well below the competition, which can result in netting less than with an agent, along with the frustration of doing it all yourself.