Some homeowners consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). We think there are several reasons this might not be a good idea for the vast majority of sellers.
NOTE: If a home has been listed in the previous 90 days on the internet or in the newspaper as a “for sale by owner” WC Real Estate will NOT take the listing. WHY? WC sells 97% of all our listings if we list it from the beginning, ONLY 25% sold if its been a fsbo as the buyer pools have already been used up and unfortunately the homeowners might have tainted the one and only buyer that liked their home and they went on and bought something else. BEFORE you try and sell it yourself, call a WC Realtor first and visit with them to see what we have to offer. Call (402) 426-2600 – agent on duty 7 days a week.
Here are five of our 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 FSBO.
- The buyer who wants the best deal possible
- The buyer’s agent who solely represents the best interest of the buyer
- 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 Purchasers
Most real estate agents have an internet strategy to promote the sale of your home. Do you?
3. Results Come from the Internet
Where do buyers find the home they actually purchased?
59% internet
24% open houses
16% yard sign
1% newspaper ad
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 Difficult
The 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 7% over the last 20+ years.
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 commission. The seller and buyer can’t both save the commission.
Studies have shown that the typical house sold by the homeowner sells for $184,000 while the typical house sold by an agent sells for $230,000. This doesn’t mean that an agent can get $46,000 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.
Sellers forget to analyze what if it doesn’t sell for 6 months or a year. Think of the payments, taxes, interest, utilities, property maintenance you will incur for 6 months if it doesn’t sell. It may be costing you $1800 a month to live in that home and if it doesn’t sell for 6 months you just paid $10,800 more. So it just cost you more to try and sell your home by yourself then if you would have used a local Realtor from the beginning to list your home.
Bottom Line
Before 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.