FSBO vs. Selling With an Agent
When you have a home to sell and you want to go through the process without a realtor, it is referred to as a For Sale By Owner (FSBO) property. There are a few perks to selling a home on your own, but working with an experienced real estate professional can alleviate stress and ensure you are getting the best value for your home.
The Downsides of Listing as For Sale By Owner
Besides selling to a friend, neighbor or relative the desire to avoid commission fees is the number one motive in listing as For Sale By Owner. Who wouldn't want to save some money? It's an understandable position, however, it's not that simple.
Unless you have the time and resources available to devote to doing everything that it takes to handle all aspects of the sale of your home, it can get overwhelming and you could end up on the wrong side of a very bad deal. It doesn't take much for a transaction to fall off the rails, and if you aren't on top of every detail, you may find yourself without a buyer or worse — settling for a deal in which you weren't completely satisfied.
Here are just a few of the downsides of selling your home on your own:
- You are responsible for screening buyers
- You are responsible for handling negotiations
- You are responsible for maximizing exposure & staging for showings
- You are responsible for handling showing requests, inspections and appraiser appointments
- You are responsible for managing deadlines within the contract
- You are responsible for understanding the legal rights within the contract if the buyer gets cold feet or attempts to back out
- You are responsible for negotiations during offer and inspections periods
- You are responsible for handling all the paperwork that comes with selling a home
- You are responsible for keeping the deal together if/when any unforeseen issue arises
- You could end up giving away your equity to someone else if your home is not priced correctly
- You may not know reliable and affordable contractors who can help you with inspection repairs when they are requested
- You may not have access to the legal forms and other paperwork required when selling a home
7 Reasons FSBOs Fail to Sell
- Failure to prepare a property. If a home isn't appealing to homebuyers, its not likely to sell.
This doesn’t just mean making sure everything is tidy; the condition of the house needs to be perfect. This will involve doing repairs, removing unnecessary furniture and clutter, painting and decorating neglected rooms in a way to make them look as appealing as possible, and having a professional cleaning.
- Lack of marketing experience. It may seem obvious, but if your FSBO listing isn't put in front of the right people, it will be challenging to sell. Our team of realtors has the knowledge and experience to get your home in front of the eyes of those who are looking for a home just like yours. A lot of powerful marketing channels are not accessible to FSBO owners. Working with a realtor ensures that you are casting the net for potential buyers as far and wide as possible.
- Dealing with potential buyers. Speaking of potential buyers, they tend to want to move quickly. Staying on top of who might be interested in your home can be a bit of a daunting task if you don't have the time or patience to deal with queries from interested parties. Realtors can screen genuine buyers and handle all the inquiries which will alleviate some of the stress you may encounter during the sale of your home.
- Unwanted inspection results. A home inspection may turn up some problems with the house that the owner doesn’t agree with. We are here to be a sounding board when it comes to inspections. We have been through the process many times and can offer their expertise in negotiating a successful outcome. Getting through a home inspection is often about give and take, and we'll be right there with you every step of the way.
- Negotiating with buyers. The number one mistake FSBOs make is pricing their property incorrectly. Negotiations over this price can be problematic if the seller is misinformed of his or her home's worth. Beyond that, the purchase agreement needs to negotiated. Contingencies and clauses may need to be changed so that the seller gets the situation they want. It isn’t just about negotiating on the price; the contract needs to be paid careful attention to as well if the sale is going to close successfully.
- You might net less. The big attraction for most homeowners selling without a real estate agent is commission savings. But what if you net less even without paying an agent’s commission? The possibility is very real. Bidding wars are few and far between when selling as a FSBO. You’re almost certain to give up that chance when selling without a real estate agent.
- Closing the deal. Even if the FSBO seller is lucky enough to get an offer, things can still go very wrong. Any number of mistakes in the process after an offer is accepted can lead to failure. A specific order of events needs to take place for the sale to close. This will involve many different parties, and if they aren’t contacted at the right times, the sale can be delayed or even canceled. We do this every day, and we can help make sure things go smoothly.
Why You Should Use a Realtor
Regardless of the condition of your home, many problems can arise during the selling process. If you haven't been through the wringer, these can be tough issues to navigate. Our team has been serving the Evansville, IN area for more than 25 years and we've seen just about all there is to see. When you work with us, you'll have an experienced realtor who can help guide you through hang-ups and negotiate a good price for your home.