Is “For Sale By Owner” The Best Way to Sell Your Home?
Many homeowners cringe at the idea of paying substantial sales commissions to real estate agents, especially when their home’s value has already dropped substantially. For many, listing their homes “For Sale By Owner” (FSBO) seems like a viable alternative.
However, before you decide to try the “For Sale By Owner” route, consider the following 6 points:
- Most buyers work with agents and/or look at MLS listings to find what is available. If you sell your property yourself, a large percentage of your potential market may never find your property. Remember, you will strike out 100% of the time you don’t make it to bat.
- Do you have a budget for advertising? This cost – which can be quite substantial – is normally incurred by the real estate office handling your listing. How much can you afford to spend on advertising your property if it takes a year or more to sell?
- Real Estate Agents have ready access to the tools and resources to appropriately price and promote your home. They can easily ascertain what has sold in your area recently and for how much. They can also list your property on the MLS service. Odds are, you do not have access to these resources. Do you have time to go through county records to find this information? If not, you may find you are taking a shot in the dark.
- Professional agents need to be be up-to-date on the applicable laws and regulations in your area. Are you? If not, do you have the time to devote to tracking down this information? If so, what is that time worth? Are you prepared to defend yourself should you make a mistake in terms of those laws or regulations?
- How good are your sales and negotiating skills? Can you develop rapport with a wide variety of people and overcome objections posed by prospective buyers? Are you able to remain objective and not take offense to criticisms about your home? Can you present a counter-offer that won’t offend a prospective buyer? For most people, these skills do not come naturally, and it takes time and practice to master them.
- Are you well versed in the proper paperwork and closing documents necessary to complete a real estate transfer? If not, do you have a reliable resource to get this information? Do you have time to learn this part of the process?
When it comes right down to it, you may not save anything by going the For Sale By Owner route. Even if you are successful at selling your property, it may end up costing you more – in time, money, and added frustration. In many cases, “FSBO” sellers end up eventually listing their property with a real estate agent anyway.
My two cents? Hire professionals to do the job they specialize in doing, and devote the time you would invest in trying to learn their business to make more money in yours.