I understand that there are folks who would rather do things for themselves, than hiring someone to do it for them. Frankly, that’s my preference as well. I can also tell you that selling a house can be a challenging, and yet a rewarding experience. However, all of that being said, I really don’t know why anyone would want to sell their home “For Sale By Owner” (FSBO), these days.
The initial thought is to save the commission paid to a real estate company. Admittedly, for the purposes of credibility, there are people who are successful in selling their home “By Owner”. But they are rare.
Most “For Sale By Owners”, enter into the idea as a personal challenge. As a do it yourself venture, in order to save the cost of paying a commission. Not really understanding what they are up against. Others may have been fortunate selling a house in the past. Ultimately, most “For Sale By Owners” realize shortly after they expose their home to the market, as a “By Owner” — that it’s more involved than they expected. In regards to the commission, the fact is, study after study indicates — that when selling with a Realtor, the seller nets more money, than those selling “For Sale By Owner”. Even after considering the commission paid.
In recent years, so many changes have taken place since the market crash in 2008. Real estate laws have changed, and there are new and more regulations regarding financing. Even the way that properties are marketed has changed. The buyers, financing, and appraisals have gotten more sophisticated. This makes it more difficult to successfully sell by yourself. Unless you are willing to invest an inordinate amount of time, and effort.
A few years back, the real estate market wasn’t as sophisticated. You could put a sign in front of the house, and run an ad in the local newspaper. Then you waited for someone to approach you about the house. Financing was fairly straight forward, and maybe you would get lucky and sell it. However, these days, selling a home without the various tools and options available to me, can be a daunting task.
So, as a “by owner”, you put a sign in the front yard. Maybe a “For Sale By Owner” ad on the internet, and screen all the buyers. Most likely, you will be canceling personal engagements in order to meet with buyers, who are on tighter schedules than in the past. Then the buyers, themselves, are more sophisticated. For instance, most likely you are selling “By Owner”, in order to save paying the commission. Well, why are the buyers going through the aggravation of working with a “By Owner”? Maybe to save the same commission? By the way, as I stated earlier in this article, study after study has indicated that a seller nets more money working with a REALTOR®, than selling “By Owner”.
Generally a “By Owner” gets more calls about the property from real estate agents, who are looking for listings — than they do from buyers. But in the event that you actually do get a buyer, who expresses interest, they will probably try to get you to go even lower, than your already discounted price — because you are selling “by owner”. Okay, so let’s say, you’re really lucky getting past that and the buyer agrees to your price. Then what do you do? Can they really afford to buy the house? How will you know? If you’re wrong you could loose valuable market time.
In the event that you choose to sell your home “By Owner”, I truly do wish you good luck! If you do decide to employ a REALTOR®, I hope that you will give me a chance to meet with you.
The source of content for this page, which contains an expanded version of this article: Selling a House For Sale By Owner (FSBO)?