There are things you should consider before putting your house up for sale by owner (FSBO).
Selling your own home is tougher today than it’s ever been. Informed savvy buyers, a wide spectrum of inventory to choose from, and you have to be in front of the buyers in ways that often mean big headaches for homeowners.
The truth is, the primary reason for most people to sell by owner is that they want more money in their pocket. That is actually not regularly the case. Statistics show that homes sold with an agent sell for higher prices with less deal breaking terms than their FSBO counterparts.
The three biggest reasons homes sell for higher prices and better terms with an agent are:
1. You don’t have time.
In our economy, most homeowners are working full time and many well beyond the traditional 40 hour week. That doesn’t leave a lot of time to market their home or create the online exposure most buyers are interested in. Agents, on the other hand, are devoted to the time it takes to effectively market your home and get the property the proper exposure. This can result in a smoother sale and higher sold prices.
2. You’ve priced it wrong.
Pricing problems are common among FSBO properties. It’s easy to overestimate the value of your home improvements and underestimate the Fair Market Value of your home. This proves even more difficult in an economy that’s constantly changing. Overpricing your home with the anticipation that you can always drop the price later, can cost valuable time and money.
3. Negotiating power.
Agents have the ability to attract and work with a wide spectrum of buyers, as well as network with agents, to find the right people the right homes. That, plus the skills and training they’ve mastered to deliver their best service, allows the agent to negotiate at a higher level ensuring that their clients best interests are well served.
Like any other real estate transaction, the final sale price, 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, in 2014 the average For Sale By Owner home sold for $210,000 versus $249,000 for a home sold by a real estate agent.
To learn more helpful tips or to find out more about what Century 21 Semiao & Associates can do for you, contact us!
