You have come to the decision to sell your home - soon! And you're tempted to DIY, now what? You're thinking of all the money you will save. But does it even save you money? Is it really worth the hassle? Let's take a look.
First, we have to ask...does selling your home For Sale By Owner (FSBO) save you money?
- Because most buyers are already working with an agent they like and want to stick with, chances are you will still have to pay their commission if the buyer decides they want their agent to represent them. Most sellers think they won't be paying any commission at all. That's not necessarily the case in this scenario.
- Since the buyers know that you are selling without an agent, this means you're saving on the "listing" commission so buyers will usually low-ball you. We've seen sellers settle for less than what they would have walked away with had they listed it their home on the open market with a professional.
- It's like going fishing: would you rather cast your net to a large pool of fish or just one? When you're a FSBO, the exposure your home receives is not getting the syndicated attention it deserves; fewer potential buyers have access or know that it's even for sale. You won't know if you got top dollar for your home if it's not exposed to ALL potential, qualified buyers.
- Like any other real estate transaction, the final sale price, and who pays for any commission, a home warranty and closing costs are all negotiable. Sellers without an agent need to be savvy in order to come out on top. According to the National Association of Realtors, the average For Sale By Owner home sold for $210,000 versus $249,000 for a home sold by a real estate agent.
- Also, along with point #1 above, if the buyer does have an agent, the fundamental problem is, the buyer’s agent represents the best interest of the buyer — and you wouldn’t know the difference because you’re not entrenched in the business every day. So you would be paying for your buyer to get the best deal.
Do you really have the time?
If time is your friend, by all means ignore this blog post. However, if you're like most of us with full, busy schedules chances are you don't want someone randomly showing up at your front door asking to check out your home. You don't know if this person has the money to even make an offer. When you work with an agent they do that screening process for you, and every potential buyer has to go with an agent to see your home. And I'm not even going into details on the security aspect of this! Do you have the time it takes to screen all these buyers?
THE PAPERWORK! Oh dear...where do I even start with this one! Are you prepared to pay attention to the little details?
Most FSBO's don't realize all the paperwork and detail that goes into a real estate transaction. Unless you know how to read closing documents, fill out purchase agreements, and calculate the true value of a property. Every state has different laws and regulations in regard to real estate transactions and where I am (California) things are a little whacky anyway lol. The scariest mistake could happen by missing one line or not being specific enough, not disclosing information property and on the right form and in doing so you leave yourself open to future litigation. Who has time for that (let alone the money for that)!
If this article is making you rethink your decision to sell your home on your own, please give us a call TODAY to schedule a time to meet with one of our experienced listing agents. We would love the opportunity to serve you! Please reach out to us by calling/texting 530-510-8880 or email us at [email protected] With over 13 years of real estate experience, we will guide you every step of the way and lighten your load.