03/28/2016
In today's market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers. Here are five of those reasons to sell yourself as an essential agent and part of the process to the seller
1. There Are Too Many People to Negotiate With - Here is a list of some of the people with whom you must be prepared to negotiate if they decide to For Sale By Owner:
· The buyer who wants the best deal possible
· The buyer’s agent who solely represents the best interest of the buyer
· The closing attorney
· The home inspection companies, which work for the buyer and will almost always find some problems with the house. They will have to be available to open home for inspectors and appraisers
· The appraiser? What happens if there is a question of value because we all know that sellers always over price their homes.
· How does the FSBO vet the persons he invites to view his or her home? How are they to know that the person they have let in, intently scrutinizing their home, isn’t just there to see what they can later steal or worse?
2. Exposure to Prospective Purchasers - Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of their sellers’ home. Will the seller?
3. Results Come from the Internet - Where do buyers find the home they actually purchased?
· 44% on the internet
· 33% from a Real Estate Agent
· 9% from a yard sign
· 1% from newspaper
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy or an agent is crucial.
4. FSBOing has Become More and More Difficult - The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years. The 8% share represents the lowest recorded figure since NAR began collecting data in 1981. As your agent, I have value to be able to guide your sellers through the maze of requirements and regulations.
5. You Net More Money when Using an Agent - Many homeowners believe that they will save the real estate commission by selling on their own. Sellers must realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission. Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.
