FSBO's: Why Using a Realtor is the Best Choice
Posted by Eric Skates on
We have all heard the term "FSBO", but do you really know exactly what it means? Of course, it is an acronym for the words "For Sale By Owner", but in reality, it means selling a home without professional representation. Most homeowners will tell you that they choose to sell their home themselves to save on the commission and maximize their profits. The truth is, that selling a home without representation can actually end up costing the homeowner much more in the end. Let's look at the reasons why using a realtor is a wise choice.
Marketing Opportunities are Limited
When selling a home without an agent, marketing opportunities are severely limited. With the majority of buyers searching online for listings, FSBO's are not likely to get the maximum exposure they need on a number of home listing websites to reach qualified buyers. Simply putting a sign in your yard for drive-by traffic or advertising on your own via social media does not have the same impact as does professional marketing. Real estate agents are able to offer widespread exposure for your listing through the multiple listing service and are also able to promote the home to hundreds of other agents. It can cost a homeowner a significant amount of money to advertise through the appropriate channels, and they still may not have the ability to reach the same qualified clients as a professional does.
FSBO Homes May Not Be Properly Priced
Everyone wants to get top dollar for their home. However, no one knows how the housing market is doing at any given time better than a real estate agent. Homeowners who go at it alone tend to put their home on the market at a price determined by an online home assessment tool, which is not accurate most of the time. This can put the listing price way off, leading qualified buyers away from the home. Overpriced homes will sit on the market for months at a time with no action, and buyers will use this as leverage to make an offer that is way less than the home is worth. An agent can help by pricing the home appropriately from the start based on a comprehensive market analysis, so sellers are not leaving money on the table.
The Lines Of Communication Are Not Kept Open
A real estate agent is required to look out for the best interest of their client. The listing agent will handle the negotiation process from beginning to end, as well as work with the title company and the buyer's lender. They are well educated on how to handle the entire process. An agent will ensure that all critical details are completed as agreed upon, so settlement goes smoothly. When a seller tries to sell their home without representation, they face the possibility of overwhelming themselves, not getting the best deal in negotiations, and delaying closing times. The amount of paperwork involved in selling a home legally has increased in recent years. An FSBO property is not exempt from disclosures and other mandatory regulations. An agent can eliminate the frustration that often comes along with dealing with the selling process alone.
FSBO's Tend To Sell For Less
Many sellers feel that by saving the commission that they would otherwise pay to a listing agent, that they will walk away with more money. Often times, FSBO's sell for much less, counteracting any additional profit that the seller would receive. The agent's commission is usually much less than the difference in selling price that comes along with listing a home for sale by owner.
When selling a home, it is always best to consult a real estate agent. They have the seller's best interest in mind and will work hard to sell the home in the shortest amount of time, for the best price possible.
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