- Category: For Sellers
- Published on Wednesday, 11 January 2017 00:27
- Written by Don Wixom
- Hits: 2259
The amount of homes with that "For Sale By Owner" (aka FSBO) sign in the front lawn seldom seems to decrease. We're here to let you know why doing what may seem like saving money, is actually costing you.
"I don't want to pay a commission."
"We don't want to deal with an agent."
"I can post to Facebook and Craigslist ads myself and get the same results."
We've heard a lot of reasons as to why someone has chosen to sell their home without the assistance of a license Realtor. However, there are many more reasons and statistics that prove the value in using a Realtor.
On average, FSBOs account for only 8% of home sales each year!
That means there are a lot of sales that are falling through or the owner is just giving up on selling because they don't think a Realtor could do it any better. The reason those sales aren't happening is because sites like Facebook, Craigslist, etc on not commonly used by someone who is seriously searching for their new home. The majority of buyers are using a Realtor to assist them in their search. A lot of buyers don't have time to sit for hours on end to search for their perfect home. Using an Realtor is at no cost to them and makes their life much easier! That Realtor is going to search their local MLS (Multiple Listing Service) to find the perfect home for their buyer. The chances of that Realtor seeing the FSBO Facebook ad are slim to none. If they are not using a Realtor, then they are searching on real estate sites that are fed by the MLS. A FSBO will not show up on any of those sites.
The typical FSBO home sells for around 13% less than an agent-assisted sale!
The why behind this statistic has a much easier answer than the last. The seller of a FSBO is not a professional. As stated before, the primary reason someone attempts to sell their home as FSBO is to avoid fees and commission. They do not want to pay an appraiser to give them an accurate value of their home. If they did, they may not want to take that answer and still list the home at what they think is best. The biggest reason a homes sells or doesn't sell is PRICE. If the home is not priced right, it will not sell. FSBO sellers will often play the guessing game and either price their home too high and it never sells or they drastically undervalue their home and it sells very quickly, in which case they can miss out on a lot of money. It's often said, that when selling your home, you are in a beauty contest and a price war and you must win them both!
The chances of having a legal issue with a FSBO drastically increases!
People who are selling their home on their own often don't realize how much paper work and legalities come with the process. The lack of knowledge in these fields can lead to mistakes. The wrong mistake can quickly lead to someone getting a very raw end of the deal and pushes them to take legal actions.
Avoid the stress all together by hiring a Realtor who you like and can trust!