The 6 Main Reasons Not To Do For Sale By Owner
THE 6 MAIN REASONS NOT TO DO
FOR SALE BY OWNER
Doing a FSBO or selling a home as a for Sale By Owner is the first thought that comes to everyone thinking to sell their home. Why list with a real estate agent when you can just place a for sale sign on your yard and save thousands. Right? How hard could it be? If that's what you're thinking, then ask yourself if you'd appear before a judge without your lawyer, or perform your own surgery on yourself to save on the doctor's bills. Would you do that? Of course not. You may also want to ask yourself why millionaires and experience real estate investors always use the services of a real estate professional?
You see, the real estate Trillion Dollars industry, with all its governmental branches, wouldn't even exist, if selling real estate was that easy.
There are a few websites like Zillow.com that may make it sounds very attractive to list your home for free to attract home buyers, however, what they don't tell you is how hard a real estate professional has to work behind the scenes to guarantee the successful closing of a real estate transaction. The reason the government regulates the real estate industry and requires realtors to take an ongoing education every two years is that selling homes is a complicated process which requires a lot of experience and can sometimes lead to lawsuits.
Unless you are totally aware of all the real estate laws in your state, you're a marketing genius, and a trained sales professional to name a few, it is highly recommended that you solicit the services of a licensed real estate professional to help you avoid some of the pitfalls you can run into as a For Sale By Owner home seller. The reasons to avoid doing a For Sale by owner are diverse, but we have selected the 6 main ones below.
These are the 6 main reasons Not to Do a For Sale By Owner
1- The wrong pricing
The worst mistake you could make when doing an FSBO is to place the wrong price tag on your home, and consequently have your home sitting too long on the market. If you depend on Zillow's estimates you may end up pricing your home too high, as most For Sale by Owner sellers do, then fewer buyers will be interested in putting an offer on your home. If your home stays too long on the market, you may have to keep reducing the price, which would make buyers suspect that something is wrong with your home. Because of wrong pricing some homes end up sitting on the market for months if not for years, which leads to home sellers losing a lot on their sales and sometimes losing their homes to foreclosure. Check out your accurate home value to rice your home right.
2-The wrong marketing
According to national statistics only about 9% of home buyers find their homes by driving around looking for a for sale signs! For Sale by Owner sales have been seeing a steady decrease as more and more people find their new homes on the internet. This means if you're thinking to put a for sale sign on your yard, post on Craigslist or Zillow and hope to sell your home, you'd be missing on 90% of the buyers. The buyers looking at FSBOs are usually not even serious buyers or qualified to buy, if not they'd be driving with a realtor with an approval letter in hand looking for adequately priced homes.
Moreover, some of these buyers looking at FSBOs are investors or Low-Ballers, who are trying to lure you with their cash offers and quick closing to "steal" whatever equity you may have in your home. But if you had an experienced realtor working for you, they would never let you fall for such low offers. Besides, your realtor will have a full marketing strategy, including but not limited to listing your home on the MLS or multiple listing service, which will give your home the exposure it needs to be marketed to the thousands of licensed real estate agents nationwide who have qualified buyers looking for homes like yours and are ready to buy.
3- Time and money
Selling a home is a full time job and requires a lot of time, planning, budgeting and patience. Before you do a FSBO you need to ask yourself if you have the time to be available 6 to 8 hours every day to show your home to any one who wishes to see it? Would you be open enough to any criticism of your home? Would you be objective to change your decor to neutrality to please the home buyers and not yourself or your family? Do you have money to spend on marketing and staging your home, Knowing that maybe your home may not sell after all? Your listing agent would have all the expertise and the necessary tools to market your home and make sure it sells quickly so that they get paid and you get paid. Remember, if they don't sell your home they don't get paid.
4- Complicated Process & Liability
Let's face it, real estate is a tough business even for realtors. The majority of realtors end up quitting their jobs because they can't keep up with all the challenges and pressures. Selling a home is a complicated process. Finding a qualified buyer is the easiest part. Once you have found your buyer now starts the serious stuff. There are lots of steps that need to be followed in meticulously and in a timely manner, and if you miss any of the steps you could find yourself in the middle of a big mess that may not only cost you the sale of you home but can lead you to court, especially that we live in a litigious society and more often people love to sue home owners. Working with a real estate agent doesn't totally remove your liability, but at least you will have a professional who can predict the pitfalls and help you avoid them before they occur.
5- Saving Money Myth
Be honest and ask yourself why you don't want to work with a Real Estate Agent? The obvious and only answer is Not to pay the commission.
Most home sellers think that by doing a For Sale By Owner they will save on the real estate commission.The reality is homes sold by agents get about $50,000 more on average than FSBOs. When you choose a listing agent to sell your home, not only you will sell a lot faster, but you will get 10% to 30% more net profit on the sale. Think of it ,is it worth it to pay $10,000 from the buyers money to get $40,000 more in your pocket while your agent does all the work? Or to pay nothing to your agent and you get $0? One of the best things about hiring a listing agents is that it costs you absolutely nothing upfront. If your agent can't sell your home for the price you decide they don't get paid, even if the spend a lot of money to market your house from their pocket.
6- Missing on Real Qualified Buyers
If you ask any real estate professional about FSBO sellers, they will all tell you that they aren't serious sellers and that they are just day dreaming about finding a qualified buyer. As a result, they will avoid bringing their qualified buyers to see you home, because their is no incentive for them, plus they'd rather work with a listed home knowing that the seller has committed in writing to pay a commission and that they would have a much smoother closing since both buyers and sellers are represented and are better prepared for every step of the process.
In conclusion, if you are looking to do a For Sale by Owner, ask yourself if you like to work more and get paid a lot less than your competition? If somehow you answered yes to this question, then a FSBO sale is just the best fit for you. Just remember that regardless how stubborn a FSBO seller may be, the national statistics repeatedly show that most For Sale by Owner sellers end up listing their homes with a realtor, but they usually do so after they realize that selling a home isn't as easy as they initially think. To save yourself time, money and lots of headaches connect with a highly professional Realtor who will go the extra mile and help you every step of the way to sell your home fast and for top Dollars.