5 Reasons You Shouldnt FSBO

Dated: 06/20/2016

Views: 383

Thinking of Selling? 5 Reasons You Shouldn't FSBO

In today's market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home 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.

Here are the top five reasons:


1. 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


2. Exposure to Prospective Purchasers

Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?


3. Results Come from the Internet

Where did buyers find the home they actually purchased?

  • 44% on the internet

  • 33% from a Real Estate Agent

  • 9% 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.


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 $210,000, while the typical house sold by an agent sells for $249,000. This doesn't mean that an agent can get $39,000 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, let's get together and discuss your needs.





As an agent with EXIT Realty Denver Tech Center, Mandi brings special tools and solutions that exceed the expectations of her clients. She understands the stresses and hassles involved in the buying and selling process and strives to alleviate these concerns for her clients. If you are considering listing your property in the Denver area please call or text Mandi at 303-246-7985 or email her at [email protected] to start the process with a knowledgeable and trustworthy real estate professional.

Blog author image

Sheryll White

As a Full Time real estate agent for the past 23 years, Sheryll has helped hundreds of home owners in Colorado buy and sell their homes. Sheryll's easy going, no pressure style and her in depth knowl....

Latest Blog Posts

Open House in Fairway Vista in Littleton this Saturday

10679 W Cooper Place, Littleton, COCome see this immaculate & Updated Littleton home! Open to the public Saturday, September 22 from 11 am- 3 pm.  6 Beds, 4 Baths, 3254 Sq Ft. *Appealing

Read More

Open house 8376 Green Island Cir, Lone Tree: 9/21 1-3pm

Beautiful Falcon home in sought after "Fairways" of Lone Tree. As you walk though the doors to this striking home you will see a sweeping staircase the pulls you into the open floorplan. Vaulted

Read More

Take a look at these Capital Hill Homes!

Investors! Peep your eyes on this beautiful Cap hill duplex that just needs a little love. This home features 3 beds and 1 bath with just over 1600 sq. ft! If you are interested in scheduling a

Read More

Fantastic Country Club Remodel, Now Available!

Stunning remodel, Great LocationCome take a look at this fully remodeled home only steps away from Cherry Creek, Denver Country Club, and Washington Park….This two story home was fully

Read More