5 Reasons Why You Should Not For Sale By Owner

Dated: 07/17/2017

Views: 121

5 Reasons Why You Should Not For Sale By Owner! | Keeping Current Matters

In today’s #Denver market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their homes on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

1. Exposure to Prospective Buyers 

Recent studies have shown that 94% of buyers search online for a home. That is in comparison to only 16% looking at print newspaper ads.  Simply put, most real estate agents have an internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

Where did buyers find the homes they actually purchased?

  • 51% on the internet

  • 34% from a Real Estate Agent

  • 8% from a yard sign

  • 1% from newspapers

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

3. There Are Too Many People to Negotiate With 

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale by Owner:

  • The buyer who wants the best deal possible

  • The buyer’s agent who solely represents the best interest of the buyer

  • The buyer’s attorney (in some parts of the country)

  • The home inspection companies, which work for the buyer and will almost always find some problems with the house

  • The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years. 

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money When Using an Agent 

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $185,000, while the typical house sold by an agent sells for $245,000. This doesn’t mean that an agent can get $60,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

Blog author image

Wan Lim

My name is Wan, I am passionate and driven to help everyone I can in buying and selling real estate. Just a little bit about me, I graduated Colorado State University with a degree in Hospitality Mana....

Want to Advertise on this Site?

Latest Blog Posts

Check Out 7761 S Columbine St

WELCOME HOME! Gorgeous 2 Story Home on Cul-de-Sac in the exceptional Forest Park neighborhood is move in ready! Notice the warmth and clean feel of this home as you enter. New interior & exterior

Read More

Westminster Colorado Investment Homes For Sale

Fixer Upper Homes in Westminster Colorado! Looking for that Special Home to live - give me a call.Westminster CO Real Estate - Mike Conner, Broker Associate /

Read More

Aurora Investment Homes For Sale

Looking for a Fixer Upper in Aurora. Check these homes Out!Looking for that Special Home to live - give me a call.Aurora CO Real Estate - Mike Conner, Broker Associate;/

Read More

Move In Ready Home Price Just Reduced

Stunning Turn Key Home with Every Upgrade!Price Just ReducedMEET THE STORCK TEAMTatyana and Aaron is an award winning team, who have been making their client’s dreams a reality since 2005.

Read More