For Sale by Owner – Why??? – Better known as FSBO
August 3, 2018 | Tom Ashworth
The low down on FSBO
Driving down the street in Burnet, Texas I see a lot of “for sale by owner” (FSBO) properties. I started wondering why and found that there are a lot of reasons that homeowners would choose to sell their home without using a Realtor®. The next question I wanted to answer was “Are the reasons that people want to sell their home with using a Realtor® a good one?”
Aside from the actual sale, there is a lot of paperwork needs to be done in order to complete the sale. Most of this paperwork is legal in nature and it must be handle by someone that understands the implications of contract law, equal housing opportunity act, disclosures that must be made and the proper way to handle changes in the initial contract.
Many, many homes that are sold by the owners run into legal troubles and the amount they save in commissions is quickly spent hiring lawyers to represent them in court. One thing that always amazes me is that many homeowners try to sell their home, but in the middle of doing so; they contact a Realtor®, because it is too complicated for them.
The biggest thing “for sale by owner” misses out on is getting their home marketed in all the latest places. Realtors® do this for a living, so we are experienced in the latest market techniques. Also, homeowners cannot get their home listed in the Highland Lakes Association of Realtors MLS system, so they are missing a huge market. This is because every agent website, Zillow, Truilia, Homes.com, Realtor.com, etc. use this MLS to list homes for sale. Just think of all the websites your home will not be listed on. Also remember this, according to the National Association of Realtors® 90% of home buyers start their search for a home on the internet. If you cannot be found there, you may not sell your home.
Another thing that “for sale by owner” doesn’t get right is pricing their property. A Realtor® is trained to analyze data and do what is called a Comparative Market analysis (CMA) to determine the correct price for the home. Also, according to statistics Realtors® sell homes for 15% more that a “for sale by owner” in the same area. So you save 6% commission, do all the work yourself and loose 15% on the price. That is 9% less than if you had used a Realtor®. Learn how to sell the home for the most money.
Realtors also know how to stage and present a home in its best light. Many homeowners think that their home looks nice, but if they were to call a Realtor® they would know what looks good and what does not appeal to home buyers.
In conclusion, if you are trying to sell your home, get in touch with me. I will talk straight with you and always give you the honest answer.