To ‘For Sale by Owner’ or Leave it to the Professionals…
Should you ‘for sale by owner’? Who knows a home better than anyone? Certainly, the homeowner! Many homeowners looking to sell their home try to sell on their own rather than working with a professional. Homeowners who try to sell their home on their own are typically referred to as FSBO’s, or for sale by owners. Of course, many homeowners want to save money that they would have spent on real estate commissions. Additonally, others feel they don’t need a professional to sell their home.
Especially relevant, a National Association of Realtors survey shows that less than 10 percent of all home sales are FSBOs.
Reasons Not to For Sale by Owner
Here are some top reasons why it may be best to utilize a professional when selling your home:
There are many people to negotiate with, including a buyer, the buyer’s agent, attorney, possibly a bank, as well as the appraiser. Thus, dealing with so many different parties can be a tough undertaking with little to no experience.
Homeowners do not know how to adequately prepare the home for sale. There are various tasks that should be completed before listing a home. Most noteworthy include:
Completing necessary repairs
Neglecting some home sale prep can reduce the homeowners’ chances of selling the house.
3. Screening buyers
Homeowners likely do not know that buyers should be pre-approved. Unqualified buyers visit the house, inspect the house and negotiate….only to come to find that they actually cannot afford the house. Precious time is wasted. Not knowing whether a potential buyer can actually afford the house can hurt the homeowner. As such, a professional can screen visitors to your home, which provides a measure of safety that homeowners don’t have.
4. Contract procedures
A contract involves a lot more than just the negotiated price. There are timelines, clauses and contingencies that vary from inspections to mortgages. If a homeowner does not understand the language and policies from the get-go, it can, as a result, get hairy once these issues come to light.
5. Home Inspection findings
When a buyer completes a home inspection and is ready to negotiate issues that come up before moving forward, many homeowners are reluctant to bend. Most homeowners believe that there is nothing wrong with their home. Thus, they refuse to address any issues uncovered during home inspections. Typically, the offer falls through. A professional can see your home objectively and suggest ways to improve its appearance (for staging and selling) so it appeals to more buyers.
6. Inadequate price-point
Due to lack of experience and knowledge of the market, homeowners incorrectly price their homes. Consequently, pricing too high hinders their chance of actually selling. A professional has access to market data about recent sales and other homes on the market that can be used to price your home appropriately. Especially relevant, studies show that homes priced right when they’re first listed sell more quickly and for a higher price than those that linger on the market.
7. Lack of exposure
Homeowners lack the tools to adequately advertise the home. Sure, there is social media and a few websites the home can be listed on. Rather, professionals are able to access many tools that homeowners cannot, thus extending exposure to the home for sale even further and increasing the chance of selling faster.
8. Endless list
There are countless items that need to be checked off the list, even with real estate attorneys and signed contracts. A few items include:
Complete inspections completed within the allotted time.
Ensure the attorney(s) approve contracts.
Follow up for the written mortgage commitment.
Pursue the title.
It has become more and more of the norm to find very few homes for sale by owners in the market. While FSBO transactions can be successful 90 percent of homeowners prefer to work with a professional rather than risk an unsatisfactory home selling experience. Or, they attempt to sell and after a period of time being unable to, they turn to a professional for help after wasting valuable time and resources.
But I need to sell my house fast!
Don’t worry, if you have a house to sell, please visit our contact page and we will be more than able to work with you….without all the hassle!