Let’s talk a little about the homeowner who chooses to sell on their own. I am a Real Estate Agent. I sell houses. So of course I recommend that you list your home with me. But let me give you the Top 20 reasons why For Sale By Owner (or FSBO) is a bad idea.
Time: When you decide to FSBO, be prepared to sacrifice a lot of time.
Costs: Listing agents spend a calculated amount of money up front to make sure a listing sells and ultimately pays both you and them fairly.
Saving on Commission: On average, homes sold by agents get $230k compared to $180k for FSBO.
No Money Upfront: Listing agents do not charge anything upfront to sell your home.
Perception: FSBO are often not taken seriously because they don’t see the value in representation by an agent or broker.
Marketing: You don’t have the ultimate home selling tool—the MLS.
Liability: Agents have E&O (Errors & Omissions) Insurance. This protects them when mistakes are made in contracts.
Agent Boycott/Sabotage: When you decide to sell your home yourself you are telling other agents that you don’t understand their value in a multi-billion dollar industry.
Pricing Incorrectly: Pricing your home incorrectly when you list it can be the worst mistake, and it can greatly affect days on the market and the final sale price.
Low Ballers: When you FSBO, you attract investors and low-ballers who see your inexperience as a prime opportunity.
Safety: And this is a biggie, knowing who is coming in and out of your home.
Sellers can get stuck in a bad deal.
Inspections are problematic: Sellers unfamiliar with the negotiation process can get stuck with unnecessary and costly repairs.
It’s harder to keep your emotions out of the sale. Having an agent keeps you one step removed and makes you less likely to make foolish mistakes.
It’s not your full-time job. You do not have the experience and resources needed to market homes properly.
Agents have a larger network than you or the average person.
You’re subjected to needless showings.
Negotiating the sale is tricky and can be awkward if you do not have an agent acting as a liaison.
You put yourself at risk of being sued.
The mindset for most FSBO’s is saving money, but sellers who don’t use a real estate agent likely will be nickeled and dimed into a pretty big chunk of change.
Read enough? Call me and I promise to make your transaction as painless as possible. Until next week….
Jill Santandrea, Broker Manager, EXIT Homestead Realty Professionals LLC, 1070 E Chestnut Ave, Vineland, NJ 08360;
856-692-EXIT; Cell: 856-362-0967; Direct: 888-856-5455; TheJillTeam.com; E-mail: TeamJill@ExitHomePros.com; Text JillS to 85377 for my mobile business card. Listen to Jill on 99.9FM SNJ Radio Today. Source: 2020 Buffini & Company