Thinking of selling? Great! Your next step is teaming up with an experienced real estate team to help you sell quickly and for top dollar.
But you want to save some money by taking the FSBO route, you say? Not so fast. You could wind up making a ton of costly mistakes along the way and end up spending more money than you thought you could save.
Here are a few reasons why being a "FSBO" (For Sale By Owner) is not such a great idea.
1. It's Extremely Time-Consuming
If you've never tried to sell real estate by yourself before, then you have no way of knowing how much time it takes to market, price, and negotiate properties. There are so many things that go on in the background when selling that it literally requires full-time hours to do so. There's also a lot of time fielding calls, showing the property to prospective buyers, and so much more. Unless you've got multiple hours per week to dedicate to selling your home, you're better off hiring a pro to do it for you.
2. You're Not Saving As Much As You Think (Or At All)
The number one reason why homeowners choose to try and sell their homes on their own is to save money that would otherwise be spent on commissions. In their minds, they could be saving thousands of dollars that they'd have to pay their real estate agents. But at the end of the day, sellers can actually wind up spending more than they thought they would.
Homes that are sold by real estate agents sell for more money than those sold by the owner. If you work with the right agent, you should realistically be able to sell for a higher price than you would if you went the FSBO route. Considering all the work they do, it makes more sense to have them represent you and get that higher price point that would more than cover any commissions paid.
3. Negotiations Can Be Overwhelming
When it comes to selling real estate, emotions can get the better of you. These emotions can get in the way of negotiating effectively to get the best price for your home. Not only that, the art of negotiating requires a lot of experience, which is something you likely might not have when it comes to wheeling and dealing in real estate transactions.
On the other hand, real estate agents have plenty of experience negotiating deals, so you'd be better off having these experts tackle this task for you rather than trying to do it yourself.
4. Coming Up With the Right Price is Difficult
One of the most important aspects of selling a home is coming up with an appropriate listing price. A price that's too high will just scare off buyers who would otherwise be willing to put in an offer on your home. Sure, sellers want to get the most money for their homes, but choosing an arbitrary number won't work. The thing is, how do sellers come up with the right price?
Real estate agents have the tools and the means to research the market and determine what the current value of your home is based on recent sales of similar homes in the area.
An agent with experience in pricing homes will understand the local market and know exactly how to price your property as per its specifications. They're highly skilled at pinpointing the right price that will bring in buyers and help you sell for as much money as possible.
5. There's a Ton of Paperwork Involved
There is so much paperwork involved in selling real estate that the average homeowner can become easily overwhelmed by it all. Not only is this paperwork lengthy, it’s also complicated and filled with complex terminology that the average person would have a tough time making sense of. That's reason enough for anyone to let the pros in real estate take care of the selling.
6. You Won't Have as Much Exposure
Real estate agents have full access to the MLS, which is considered the most effective online platform for marketing properties for sale. By allowing your real estate to market your property for you, you'll have the benefit of attracting more buyers to your listing. And the more people see your home, the higher the odds that an offer will come your way sooner rather than later. Have a look at how we effectively market all of our listings - Why Hire Us? and why we think staging is 100% necessary in getting top dollar for a home - The Value of Home Staging.
7. Liability is All on You
All that paperwork that you're forced to navigate comes with a bunch of legal terms and conditions that you will be bound to once you sign off on a deal. The last thing you want is to make an error in the paperwork and commit yourself to a contract that could leave you vulnerable to legal recourse.
Having a real estate agent take over for you will help you eliminate the odds of making costly mistakes that could have you end up in court when all is said and done.
Still think you're saving money by going the FSBO route? Think again. Most FSBOs end up calling a real estate agent after a while, so you might as well set yourself up for success and hire a seasoned real estate agent right off the bat! We are always happy to answer any questions you may have, contact us anytime at [email protected]