What’s Wrong with “For Sale by Owner”?

Posted on September 3, 2019

In today’s fluctuating housing market, some homeowners may consider trying to sell their homes themselves. This practice is known as For Sale by Owner (FSBO) and there are several reasons why this may not be the best strategy for the vast majority of sellers. 

Exposure to Buyers

According to the 2017 Profile of Home Buyers and Sellers from NAR, last year 95% of buyers searched online for a home. That is in comparison to only 15% looking at print newspaper ads. Most real estate agents have an Internet strategy and have a budget to promote the sale of your home. Are you prepared to outline an online strategy and promote the sale of your home through Facebook ads, Google Adwords, or a retargeting campaign? 

Results Come from the Internet

When searching for a home, where do you think buyers find a home? In the past, home buyers would search through newspaper ads, drive around searching for open house signs, and speak with friends and neighbors. Now, buyers are savvy and turn to the Internet as their primary method of searching for homes. Broken down by the numbers, today’s buyers find homes in the following manner: 

49% Online

31% from a REALTOR®

7% from a Yard sign

1% from Newspapers 

The days of selling your home through word-of-mouth or newspaper advertising is certainly gone! There’s more to finding the ideal buyer than putting a sign in your yard and walking away. Having a strong Internet marketing strategy is crucial to reaching the maximum number of buyers in a constantly changing real estate market. 

Negotiation  Problems

You may think that having to negotiate with several people is great news! However, there are those who require specific negotiation strategy and skill:

A buyer looking for the best deal

A buyers’ agent who solely represents the best interest of the buyer 

The buyers’ attorney

The home inspector

The appraiser 

The termite inspector

Having a REALTOR® on your side to field these types of negotiations and who can advise you about how to respond to specific requests will help you achieve the ultimate goal: selling your home at the highest possible price, with the best possible terms, with the least amount of stress!

You Net More With an Agent 

Many sellers believe that they will save money by not utilizing a real estate agent. A study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases, may be costing themselves more by not listing with an agent. When properties are listed with a broker that is a member of the local MLS, the home will be listed online with all other participating broker websites, thus marketing the home to a much larger buyer population. 

If more buyers see a home, the greater the chances are that the ideal buyer sees your home!

Before you decide to take on the challenges of selling your home on your own, certainly consider if it’s in your best interest and speak with a trusted real estate professional in your market to see what they have to offer. 

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