FSBO, or For Sale by Sale by Owner may be risky, especially in today’s environment. Here’s what you should consider before making your choice.
Selling a house is both an emotional and an economic decision that, for most of us, requires a sober mind. But when large dollar amount are at play, some home sellers roll the dice, and try to sell by themselves—to avoid paying the agency fee, or in the hope of selling faster.
Having handled a wide range of deals, from both sides of the table, we wanted to share a few reasons that we urge buyers not to go it alone. Because the reality is that FSBO carries an element of risk that may delay your sale, require significantly more time and anxiety than you may imagine, and STILL result in a dismal return on your investment.
1. Low Return on Your Investment
The ambition of every seller is to get the best price for the listed property. But owners rarely have sufficient knowledge about pricing, or have the solid industry networks that lead to the best deals.
One of the most significant factors that determine the success of a sale is correct pricing.
And real estate agents have internal experts and resources to guide you, as well as an experience-built understanding of the market forces in your area.
By contrast, FSBO pricing and negotiation tends to be driven by limited information, rough estimates, and insufficient insights. Sellers can miss out on great offers, or leave money on the table, because of their lack of experience in the market.
Sellers are more likely to jump at the first offer… or miss great offers because they’ve overvalued their property. But agents can be more objective than homeowners—and their guidance often leads to less emotionally-driven decisions by their clients.
2. Poor Timing
Selling a house can be driven by circumstances, but for best results, it helps to review market data and historical transactions. Real-estate agents have access to internal data which helps them understand the best time to invest in marketing or listing a property.
A typical seller, however, manages their sales process from a need to sell, or even outright financial distress. That can lead to selling homes during certain peak seasons. Real estate agents will guide you to make better, more informed choices.
For example: Some experts say spring is the best time to sell a house; but sometimes houses sell faster in winter. It’s best to involve an agent who understands the cycles of your unique markets.
3. Limited Marketing Knowledge and Capacity
Property owners have a limited number of contacts and platforms that they can use for marketing. And that can result in limited exposure and reach—reducing the number of quality, competitive offers that property owners get. FSBO listings generally lead to far more under-priced and unqualified offers—and that can be a tremendous time drain for any home seller.
And if sellers decide to run ads to expand their reach, that can cut deep into their profits.
Real estate agencies have exclusive access to the Multiple Listing Service (MLS), a plethora of marketing vehicles, and an extensive network of contacts to ensure your home is seen far and wide. And your agent can help evaluate whether a potential buyer is legitimate, making the best use of your time.
4. No Professional Support
Selling a home involves multiple negotiations, property viewing, legal processes, and financial transactions. The above activities can be overwhelming for an individual or costly when seeking third-party providers. Here’s how a professional agency facilitates the process:
- Legal insights: As a seller, you’ll benefit from the agency’s assistance in ensuring the transaction is legal and all the requirements are met.
- Property Viewing & Communication: An agency helps qualify potential buyers and handle communications between them and their agent, saving you time and headaches.
- Pre-Sale Preparations:Agencies have vast experience to help them to guide you on repairs, cleaning, inspections, staging and photography that helps smooth the sales process.
Do You Need Help Selling Your Home?
Selling a home is a major undertaking, and for sale by owner may be risky and exhausting, as well! By involving an experienced agency like Alexy Realty Group, you’ll tap into a strong network, support and experience. We hope you’ll give us a call when you’re ready to begin!