THE WOES OF "FOR SALE BY OWNER"

Today's real estate market may cause some homeowners to consider selling their home on their own (aka: For Sale By Owner/FSBO). However, a FSBO may be difficult to execute well for the majority of sellers.

Let's examine 5 reasons why not to FSBO.

1. Online Strategy aimed at Prospective Buyers
Studies have shown that 93% of buyers search online for their next home.  Developing and maintaining such strategies consumes time to promote.  Do you have those extra hours in your day?

2. Results come from the Internet
According to the NAR (National Association of Realtors) here is where buyers found the homes they purchased. 
   * 55% on the Internet
   * 28% from Real Estate Agent
   * 10% Other
   * 6% from yard signs
   * 1% from newspapers

Selling your house by planting a sign in the yard or placing an ad in the newspaper is long gone.  Have a strong internet presence matters.

3. How are your negotiation skills?
Here is a "short list" of people with whom you must be prepared to negotiate with if you decide to go the FSBO route:

  * the buyer who wants the best possible deal
  * the buyer's agent who acts in the best interest of the buyer
  * the buyer's attorney
  * the home inspection company, who will most likely find some problems with the house
  * the appraiser, if there is a question of value

4. The "Paperwork"
The paperwork involved in buying or selling a home has increase significantly 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 past 20+ years.

5. "I'll net more money!"
Too many homeowners believe they will save paying the real estate commission by selling on their own, but the seller and the 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.

The reported noted that:

"While 36% of sellers that attempted to sell their homes on their own, only 11% of sellers - in other words, less than a third ... actually sold without an agent."

Take Away:

Before you decide to take on the challenge of selling your house, talk over your needs with a local real estate agent.