As you know we have been experiencing a rapid rise in home prices due to the lack of inventory and very low interest rates. Some homeowners have been considering trying to sell their home or properties by themselves or commonly known as a For Sale by Owner (FSBO). The National Association of Realtors have been studying how this is working out for Home owners and have become of several reasons why this might not be the best idea for the vast majority of sellers.
Here are the top five reasons for not trying to Sell your home on your own:
1. You will need the maximum exposure to qualified Buyers.
The most recent information from the housing industry have shown that 95% of buyers are searching online for a home. Print newspaper ads or classified ads are accounting for less than 17%. Most active real estate agents have an internet strategy and access to over 900 web sites to promote the sale of your home. Do you?
2. The Best Results Come from the Internet
You must have a strong internet strategy is critical. Home buyers are finding the homes they actually purchased online?
The current home buyers find out about the available homes by:
49% on the internet
31% from a Real Estate Agent
7% from a yard sign
1% from newspapers
You can no longer sell your house by just putting up a sign and putting and ad in the local paper to get your home sold.
3. The Selling Process is Complicated and You Need to Negotiate With Many Different Individuals.
Here is a short list of some of the people with whom you must be prepared to negotiate:
The buyer who wants the best deal possible at your expense
A Buyer’s agent who solely represents the Buyer and their best interest
The Title Company for yourself and the Buyer.
The home inspection companies, which work for the buyer that almost always find some problems with the house setting up the need for a second negotiation after you have agreed on at selling price
The Appraiser if there is a problem if the Appraisal comes in under the value of the agreed upon sales price
4. Selling Your Home Yourself Has Become More And More Trying and Difficult
There is a ton of paperwork involved in selling and buying a home. The number of documents needed to sale a home has increased dramatically since the industry has implemented disclosures and regulations. The increase in paperwork and documents is the number one reasons that the percentage of people selling their own home by themselves has dropped from 19% to 8% over the last 20+ years. The 8% share represents the lowest recorded figure since National Association of Realtors began collecting data in 1981.
5. You Will Put More Money in Your Pocket When Using an Agent
It is a common belief that homeowners will save the real estate commission by selling their home on their own. The main reason buyers look for homes being sold by the owners is because they also they will save by not paying real estate agent’s commission. The seller and buyer figure they can both save the commission.
In a recent study by Collateral Analytics the results revealed that selling your home yourself does not actually save and money. In a lot of cases it may be costing more by not using an Agent. The Collateral Analytics study revealed that one of the biggest reasons is the time involved by all of the parties related to the sale:
“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”
It goes without saying that if more buyers see a home, there is greater the chances that there could be a bidding war for the property which could net you more in the end.
Why choose to sell your home and manage the entire transaction when you can hire an agent and not have to pay anything more and probably net more money to you after the sale?
It is a good idea to sit down with a real estate professional in your area and see what they have to offer and how much they will be able to save you in time and money.