With home prices on the rise and a low inventory of homes for sale in today's market, some sellers may consider selling their home on their own, known in the industry as a For Sale By Owner (FSBO). However, this is not a wise decision for most people when selling a home. Below are the top 5 reasons why.
1. Exposure to Prospective Buyers
According to recent studies, 88% of buyers use the internet to search for their dream home in comparison to only 21% who look at newspaper ads. Most real estate agents have a strategy in place to promote the sale of your home online. Do you?
2. Results Come from the Internet
44% of buyers found the home they actually purchased on the internet, 33% by using a real estate agent, 9% from a yard sign, and only 1% from newspapers.
3. There Are Too Many People to Negotiate With
If you decide to sell alone, you must be prepared to negotiate with the buyer who wants the best deal they can get, the buyer's agent, the home inspection companies, and the appraiser if there is a question of value. Using a real estate professional can greatly help you in all of these cases.
4. FSBOing Has Become More and More Difficult
There has been a dramatic increase in the amount of paperwork involved in selling and buying a home as a result of mandatory industry disclosures and regulations. This is one reason why the percentage of people FSBOing has decreased from 19% to 8% over the last two decades. This is the lowest recorded figure of homeowners choosing to sell alone since NAR began collecting data in 1981.
5. You Net More Money When Using an Agent
Many homeowners believe that by selling on their own, they can save the real estate commission. Simultaneously, the main reason buyers look at FSBOs is because they also believe they can save the real estate commission. However, the buyer and seller can not both save the commission. Also, the typical home sold by the homeowner sells for $210,000 while the typical home sold by an agent sells for $249,000. Of course, this doesn't mean an agent can get $39,000 more for you home, as studies have shown that FSBOs are more common in markets with lower price points. However, it does show why FSBOing may not make sense.
There are several reasons why you should not underestimate the importance of using a real estate professional when selling your home. Before you make the decision to FSBO, it would be wise to meet with a professional in your area to see what they have to offer. If you are considering selling your home and would like more information, please visit our website or contact us at (864)341-7774 or lakegreenwoodproperty@gmail.com.
