For Sale By Owners Need to Read This![/x_custom_headline][cs_text]For Sale by Owner (FSBO). We’ve all seen the signs hanging in front of people’s houses. You know, the red and white ones that were bought at Home Depot. Owners do have the right to sell their own homes. However, that doesn’t mean that it is good idea…in fact, it’s a horrible idea!
Most owners who decide to sell on their own don’t want to pay commissions to a Realtor. That’s usually as far as they go with the thought, but they don’t consider the absolute risks they are taking by doing so. Here are some of the top reasons why selling a home on your own is a bad, bad idea. When you get cavities, do you drill your own teeth? Don’t torture yourself by trying to sell your won home!
FSBO Homes Sell For Less
It’s true. Homes that are sold by their owners sell, on average, for 16% less than homes that are sold by qualified Realtors. To put that into numbers, if a home sold for $200,000 by their owner, a Realtor would have been able to sell it for $232,000. That’s a huge difference and it more than makes up for any commission!
Most owners don’t have the time and ability to navigate the selling process. They also don’t have the same tools available to accurately determine market trends and values.
FSBO Homes Don’t Sell as Quickly
This one really comes down to time. Most owners have jobs and families and can’t dedicate themselves to the sale of their home. Without that dedication, the home often sits on the market for longer. Most FSBO owners also don’t have a marketing budget and that results in no-one knowing their home is available (unless of course, someone drives by and sees the sign hanging in their window).
Liability and Scams
While anyone can sell their own home, that doesn’t mean that the laws governing the sale of a home can be ignored. Liability is fully on the seller in this case and if something goes wrong, it falls on the seller. Misrepresentation, lack of disclosure, etc. are all areas that can really mess a seller up.
Believe it or not, scammers are out there! FSBOs can be the subject of bad deals, mistakes and outright lawbreaking that affect both buyers and sellers. It can come right down to false appraisals and fake contracts. It’s perilous out there and it’s important to work with a pro who can make sure you don’t fall victim to a scam.
Contracts Are Contracts
Contracts are legally binding. A contract for the sale and purchase of a home is a long document with many different parts. A mistake made anywhere on the contract can have dire consequences. As an owner, it would be horrible to think everything is going well, only to discover a mistake later. Unless you truly know the language in a Florida real estate contract, you really need someone who knows what is going on.
Marketing Expertise is Often Lost
Owners who sell by themselves are usually looking to save money. They don’t always realize that a Realtors commission includes money for marketing. Without using a Realtor, this is often over looked by owners.
Realtors also have access to resources and experience that owners can’t access. The Multiple Listing Service (MLS) is one of the greatest resources for real estate agents. You can start using the MLS on our site by clicking here! If your home isn’t listed with an agent, it doesn’t go on the MLS. That means that all of the agents out there who are looking to bring buyers to your home won’t even know that it’s for sale. You lose an entire army of people looking to sell your house to their buyers.
But there is also other marketing like brochures, flyers, websites, magazines, papers, and countless other sources. Also consider open houses, virtual tours and professional photography.
If you’re a seller who is considering selling on your own, consider meeting with us first to go over your options. We will sell your home more quickly and for a higher price than you will be able to do on your own!