FSBO vs. Realtor
The world of real estate has changed dramatically over the years. A hand-shake is no longer a prudent way of sealing the deal and closing at the kitchen table is out.
Unfortunately, the type of person who tries to sell by owner doesn't seem to understand the difficulties in selling real estate. Selling real estate today requires a great awareness of current law, contracts, and the complications of closing a transaction. The typical problem that occurs when dealing with a for sale by owner home is the failure of the transaction to close. Only after a buyer is found, and a contract entered into, is it likely to be discovered that the sale cannot be completed.
- The two most important considerations when selling a home is the price and exposure. If your home has been on the market and has not sold, it is because of one of 2 things...It wasn't priced right or the property didn't receive the proper exposure or marketing.
- Studies show that the median sales price of an agent assisted home are 27% higher than ones sold by owner.
- Realtors can ensure the proper filing of all required paperwork, the scheduling of assessments and inspections, and the proper listing and marketing of the property with a multiple listing service.
- Buyers will be less inclined to make an offer if they know that they'll be negotiating directly with the seller.
- Mortgage options are limited from what they had been and there are fewer buyers out there. This is not a good time to "test" the market.
- While working with a real estate professional is no guarantee of a smooth transaction, when a buyer works directly with a for sale by owner, it is an open invitation to a wide variety of potentially devastating problems.
- If your house is not listed that means there are no assurances to the realtor that if they show your property, that their buyer might go around them and try and cut a deal with a for sale by owner seller.
- Without a listing agreement, there's no guarantee that the buyer's agent will be compensated. Even if the FSBO offers to pay the buyer's side of the commission, most agents won't want to go through a transaction with a self represented seller across the table. This means the pool of potential buyers for FSBO homes is limited primarily to unrepresented and probably unqualified prospects.
- FSBO's are locked out of many home search engines and websites including Realtor.com the number 1 site for buyers looking for homes for sale.
Contact me today for further information or to arrange a meeting.