In today’s market, some homeowners may be tempted to try to sell their own home rather than hire a real estate agent to do the job for them. This is known in the industry as For Sale By Owner, or FSBO. While we understand the temptation to do so, there are several reasons why this isn’t the best idea for the majority of homeowners. Check out a few of the top reasons below.
Many people believe that when they list their house as FSBO, it’s going to save them money. This is a misconception that we’re here to dispel.
The reality is that while you may save money up front by using this method, you have no guarantee of a return, the way you do when working with a real estate agent. There is another misconception that real estate agents are out to get you or your money. Again, this couldn’t be farther from the truth. Listing agents spend a calculated amount of money up front to ensure the listing sells. From there, they pay both you and themselves a fair amount. Remember that real estate agents typically do not charge any money upfront to sell your home. They spend the money, and if they aren’t able to sell it in the end, they are the ones who eat the costs, not you. Thus, hiring a qualified listing real estate agent is a very low risk high reward scenario.
Another reason not to list your house as FSBO is due to the perception. There is a general perception that homeowners who do this aren’t serious about selling their homes. In fact, many agents and buyers believe that those who list their home for sale themselves are testing the waters to help them decide if they really do want to sell their property. As such, these listings aren’t taken seriously within the real estate community, which typically means fewer offers and lower selling prices.
Weeding out unqualified home buyers is a skill, and not one that comes easily. This is where experienced real estate agents come in. When selling a home, it’s important to be able to identify who is a serious, qualified buyer and who is just a curious neighbour. Preparing your house to be sold is no easy task. From cleaning and staging to scheduling open houses or walk-throughs, it takes a lot of time and energy. Thus, you want to be sure that the people viewing your home are serious about buying it and aren’t just wasting your time.
Agents know exactly which questions to ask to decipher whether someone is a qualified buyer or not.
One final reason not to try to sell your house yourself is that sellers who do this often don’t know the rules and get stuck with unnecessary and costly repairs.
Without a proper understanding of the legal requirements for selling a home or the negotiation skills necessary to work out a fair deal, many homeowners get saddled with unexpected costs like repairs.
Homeowners are not legally required to conduct repairs or renovations when selling their home, however, buyers can request they be part of the closing deal. Without knowledge of the industry, many homeowners will agree to complete the repairs before checking how much they’ll cost. The result is having to hire and pay a professional thousands (or even tens of thousands) of dollars to complete the repairs promised to the buyer. Going back to point #1, in the end, selling by owner will almost always cost you more money.
Selling your home without a real estate agent by your side isn’t easy, and with stats saying only 11% of sellers actually succeed at FSBO, why take the risk? Contact us and let us help!