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Top 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. Exposure to Prospective Buyers

According to the 2017 Profile of Home Buyers and Sellers from NAR, last year 95% of buyers search online for a home. That is in comparison to only 15% looking at print newspaper ads. 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 home they actually purchased?

49% on the internet31% from a Real Estate Agent7% from a yard sign1% 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 possibleThe buyer’s agent who solely represents the best interest of the buyerThe 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 houseThe 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.


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.


study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases, may be costing themselves more, by not listing with an agent. One of the main reasons for the price difference at the time of sale is:


“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.


Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?


Bottom Line

Before you decide to take on the challenges of selling your house on your own, let’s get together to discuss your needs.

I can help you navigate the home buying process and save you time, and certainly save you money. I get paid on commission by the seller when I bring them a buyer, so my services are completely free to home buyers. It is important for you to have your interests represented during the home buying process.

See you next time. 

Jennifer Sofield

Paoli

Malvern

Daylesford

Devon

Berwyn

Radnor

Lower Merion

Strafford

Villanova

Bryn Mawr

Wayne

Gladwyne

Penn Valley

Saint Davids

Rosemont

Haverford

Narberth

Ardmore

Bala Cynwyd

Wynnewood

Ready to Get Started? 

Copass Real Estate -Main Line

Compass RE - Jennifer Sofield - Agent

Suburban Square

6 E Montgomery Avenue, Suite 105

Ardmore, PA 19003

Jennifer Sofield is a team of Pennsylvania real estate licensee affiliated with Compass RE and the Town & Line Team. Compass RE is a licensed real estate broker and abides by equal housing opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage. Compass RE Main Line office phone:  (610) 822-3356. Broker of Record: John Bilek. 

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