There are reasons not to go the FSBO route.
For Sale By Owner
In today’s market, due to rising prices and low inventory, many sellers consider selling FSBO (For Sale By Owner). The sellers usually think this is a good idea because they can save paying the brokerage fee to a Realtor.
However, there are a few flaws in their thinking.
FSBO has 5% of the market
It’s a proven fact, year after year, 87% of all homes sold are sold through the Multiple Listing System and Realtors. This leaves 13% of the market for FSBOs – right? Sorry but no. Of the remaining 13% over 8% of sales are between friends and family. AS a result, this leaves a FSBO with only 5% of the available buying public
Lower Median Price
Another proven fact – the median sale price of home sold through a Realtor is 14% higher than a home sold FSBO. So in order to save a 5% or 6% commission, the FSBO is selling for 14% less. Does that make sense to you?
Paperwork and government regulations.
There are many forms and disclosures that a Realtor must fill out and get signed. By not having some of these papers in the file properly filled out and signed it can result in a fine up to $11,000. As a FSBO, you can also be assessed the same fines for not having the proper paperwork. This alone is a good reason not to FSBO.
Buyers Search the Internet
Studies show that 88% (or more) of buyers search for a home on the Internet. Why? Because the internet sells homes. When we list a property for sale, we make it available to be seen on over 700 different web sites. Most Realtors have an Internet marketing strategy. As a FSBO – how many sites can your home be listed on?
Screening for Qualified Buyers
Before a responsible Realtor shows a property to a prospective buyer, we get a Pre-Qualification from a mortgage company that tells both the Realtor and the seller that the parties we are showing your house to is qualified and can purchase your property. In addition, the Realtor will accompany the buyer to the property. Do you want a stranger to come to your door and ask to come in?
Bottom Line
These are just some of the reasons not to FSBO. But if you really want to, by all means, go ahead. And if it doesn’t work out, call us.
Comments? Contact us.
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