It is inevitable the some homeowners will consider trying to sell their home on their own. This is known in the industry as a For Sale by Owner (FSBO). To those homeowners I provide some pros and cons and I highly recommend homeowners use a well known service provided by ForSaleByOwner.com. ForSaleByOwner.com provides a complete checklist of procedures to sell your home!
Deciding to sell a home is exciting and its a big decision, no matter if you use an agent or not. To all FSBO, please do not hesitate to contact Heidi Tallos with Coldwell Banker Residential Brokerage for any questions or concerns you may have by calling or texting her at 214-998-1595, or contact her today!
For Sale by Owner – Negotiations
First you must be prepared to negotiate if you decide to do a For Sale by Owner. Some of the people you will need to negotiate with are the buyer, the buyer wants the best deal possible and they will nitpick the small stuff. The buyer’s agent, the buyer’s agent represents the best interest of the buyer exclusively. Home inspection companies that are paid for by the buyer and will almost always find problems with the house. The bank appraiser, especially if there is a low appraisal or value of the home comes in to question. In the case of a short sale you may need to negotiate with a bank or in some cases even a buyer’s attorney.
For Sale by Owner – Online Strategy
Real Estate agents have access to numerous sources of exposure to sell your home. Meaning the can list your home on several popular websites such as Zillow or Realtor.com, Studies have shown that 42% of buyers search first online for a home while 87% of buyers searched online for more pictures and information about a home. “The typical buyer who did not use the Internet during their home search spent only five weeks searching and visited five homes, compared to those who did use the Internet and searched for 10 weeks and visited 10 homes.”¹ Most real estate agents have an internet strategy to promote the sale of your home. Do you?
For Sale by Owner has become increasingly difficult so putting up a sign or putting an ad in the paper are less likely to work when generations of home buyers are looking to online resources first. As a For Sale by Owner it is critical to have a strong internet strategy!
For Sale by Owner – Paperwork
Paperwork for selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. FSBOs accounted for 8% of home sales in 2014.²
For Sale by Owner – You Net More
Sellers seem to think that they will save money selling on their own by not having to pay the real estate commission, this is simply not the case. The fact is unless they used to be an agent or are currently an agent and have access to market statistics and home valuation reports they will likely sell their home much cheaper than an agent-assisted sale. The typical FSBO home sold for $210,000 compared to $249,000 for agent-assisted home sales.² As for Buyers, they too seem to think that buying a For Sale by Owner home will also save them from paying a real estate commission, this too is simply not the case.
For Sale by Owner – Last Word
If you are going to take on the challenges of selling your house on your own do it with a reputable online service that will allow you to get the most exposure online. I highly recommend
Bottom line, if you have any concerns over a For Sale by Owner situation, schedule some time with me, a real estate professional and at least see what I can offer.
Additional Sources: 2015 Home Buyer and Seller Generational Trends report