FSBO stands for “For Sale By Owner,” and it is a method of selling your home without the aid of a real estate agent. The main idea behind FSBO is that by selling the home by yourself, you save the 6% that would otherwise be given to the real estate agent as commission. This percentage can add a decent amount in savings. While this extra bit of money is what usually entices people into FSBO, most homeowners that pursue FSBO do not end up saving any money. Rougnly 10% of FSBO sellers are successful at selling their homes at all.
Before you consider listing your home as FSBO or purchase a home that is listed as FSBO, there are a number of considerations we, at The Talons Group, believe you should take into consideration.
Realtors May Not Show a FSBO House
According to Investopedia, realtors are less likely to show a FSBO house to their client even if the client expresses interest in that home. In fact, the realtor is more likely to discourage their client by citing the hassles and risks of trying to close a deal on a home without a professional representing the seller.
In most cases, FSBO sellers are viewed as “unrealistic, unreasonable, and difficult sellers whom professional realtors have rejected,” says Bruce Ailion, a realtor from Alpharetta, Georgia.
Real Estate Is a Full-Time Job
As a homeowner, it is very likely that you have a full-time job as well as a number of responsibilities on top of your busy work schedule. Can you afford to make selling your home a second, full-time job? For a lot of FSBO sellers, that is what choosing to sell their home on their own turns into. Selling your home on your own could mean working with the potential buyer’s availability. This could mean leaving work to show your home, excusing yourself from meetings to answer a potential buyer’s call, and so many other responsibilities that will now fall onto your plate. Not only do these responsibilities become yours to juggle, but you will have to quickly become an expert on marketing your home in order to make the most out of your selling experience.
An agent takes on all of these responsibilities while wielding important knowledge of the industry and current housing market. Agents also have access to large networks, and while it is possible to put your home on the multiple listing service (MLS) that agents use, a FSBO seller usually does not have the industry connections an agent has. This can result in a smaller pool of buyers which can mean less demand for your property. This could inevitably translate into longer waiting periods before your home sells and possibly accepting less money for your home than it is actually worth.
Inexperience Makes You More Likely to Make Mistakes
People who list their home on their own often make a huge mistake long before they even show their home to potential buyers and this usually arises as a result of the owner not knowing the value of their property.
If you are looking for a new home the chances are that you are emotionally attached to your home in some way. This can often make it harder for a FSBO seller to objectively price the property under its value. Failing to know the value of your home often leads to setting the price of your home too high which could lead to less offers.
Price negotiation takes skill that an agent is qualified to handle, and without the aid of an agent, you put yourself at risk for getting less than your property is worth or potentially not selling your home at all.
How We Can Help
If you really want to sell your home for the best price and with the greatest peace of mind, there are a number of different strategies you can employ, but the best one you can do is find the right agent to handle the job.
Not all real estate agents are the same. Some have more experience in different areas, while others might have different values and approaches to the process. Picking the right agent ensures that you have a partner that is knowledgeable of the market and understands your personal vision and goals. But having an agent at all is the first step to helping guarantee a successful, home-selling experience.
Luckily, at The Talon’s Group we have a diverse group of knowledgeable, well-known, and professional agents. We strive to not only create relationships with our clients but also offer a partnership throughout the selling or buying process. We pride ourselves in having the best technology and marketing for the best results for our clients.