With recent trends of the average prices of homes increasing, along with a decrease in the inventory, the perks of having a real estate professional will be more than beneficial to assist you in selling your home. In this competitive market, some homeowners are considering the position of being a For Sale by Owner (FSBO), but having a team of experienced and listened agents to promote your home will lift the weight off your shoulders and allow you to relax throughout each transaction.
As reported by Keeping Current Matters, there are five dominant reasons for why you should stray away from getting involved in the FSBO industry:
1. Exposure to Prospective Buyers
Recent studies have shown that 94% of buyers search online for a home. That is in comparison to only 17% 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?
51% on the internet
34% 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 $185,000, while the typical house sold by an agent sells for $245,000. This doesn’t mean that an agent can get $60,000 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. Source