Think You Should FSBO THINK AGAIN

Dated: April 2 2020

Views: 17

Think You Should FSBO? 5 Reasons to Think Again!

Think You Should FSBO? 5 Reasons to Think Again! | MyKCM

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 sellers.

Here are the top five reasons:

1. Exposure to Prospective Buyers

Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% 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?

  • 44% on the internet

  • 33% from a Real Estate Agent

  • 9% 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

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 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

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 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 $210,000, while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 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.

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.

Latest Blog Posts

ALL MY SINGLE LADIES

Single Women Make Up 2nd Largest Home Buying Group According to the National Association of Realtors’ (NAR) 2015 Profile of Home Buyers and Sellers, single women made up 18% of

Read More

Don't Disqualify Yourself Here At Abrams We Can Help Push You In The Right Direction

Don’t Disqualify Yourself… Over Half of All Loans Approved Have a FICO Score Under 750The results of countless studies have shown that potential home buyers, and even current,

Read More

Looking For A Home What You Want Vs What You NEED

Starting to Look for a Home? Know What You WANT vs. What You NEEDIn this day and age of being able to shop for anything anywhere, it is really important to know what you’re looking for when

Read More

5 Sites With Amazing Deals For All Of Your Home Needs

Many people think of the holiday season as the time to shop, but real bargain hunters know the best time for shopping is AFTER the holidays. Because spending significantly drops off after the

Read More