People often try to sell their home on their own (FSBO…For Sale By Owner). While this may certainly work for some, there are several things you should consider before you list your home yourself. Real estate agents perform many important services and often times deliver better results than a home seller could achieve on their own.
Advertising
According to NAR (National Association of Realtors), here’s where buyers found the homes they actually purchased:
- 55% on the Internet
- 28% from a Real Estate Agent
- 10% Other
- 6% from a Yard Sign
- 1% from Newspapers
The days of selling your house by putting up a sign in your yard or placing an ad in the paper are long gone. Having a strong internet marketing strategy is crucial.
Negotiating
Here’s 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 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
Paperwork
The paperwork involved in buying or selling a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
Sales Price
Many homeowners believe they’ll save the real estate commission by selling on their own, but the seller and buyer can’t both save the commission. A report by Zillow revealed that FSBOs are inclined to do so because they believe it will save money, but they don’t actually save anything, and eventually end up listing with an agent. The same report revealed that, “While 36% of sellers that (at first) attempted to sell their homes on their own, only 11 percent of sellers, in other words, less than a third…actually sold without an agent.”