FSBO – Pronounced “fizz-bo”
You’ve probably heard this term before in reference to For Sale By Owner, but have you ever wondered about trying to sell yourself? Simple enough right, maybe with just a trip to your local store to grab a for sale sign and some basic research on the web, snap a few photos on your phone, list your home on a website or a couple for what you think it should be worth and boom its for sale and you eagerly await the offers. In retrospect its not really that easy, can you do it that way, yes of course, but will you be getting top dollar and making the best move for your transaction… probably not.
Now we are not saying you cannot do this or frowning upon those who do, we just want to do our duty as real estate professionals and educate where we can and help those who want/need our assistance. We would love to go through some of the reasons we would suggest choosing to align with a real estate expert for the sale of your home.
For Sale By Owner
Pros
- No commission fees
- You have control
- You set price
- You see who comes in to look at your home and can be there to show them around
- You choose who you sell to
- If you’re good at marketing this is a plus
- Nowadays you can pay to list your home on websites or even some MLS systems so theres more exposure
- Social Media has never been more utilized
- Lots of resources available online for you to tap into
Cons
- Will have to advertise yourself
- Less access to qualified buyers
- Take time to research: price, documents, websites
- You’re very objective when it comes to your home and the value you see in it
- Its hard to hear criticism directly from potential buyers
- No sales expertise – most of the time this will be your first time doing this and you don’t have any history to pull from or in depth knowledge
- Less safe (not something you think about but there have been an increase in fraud and other concerns that real estate agents are trained to spot and have security measures in place for your own safety)
- Have to navigate offers
- Handle repairs
- Navigate legal documents by yourself
- Usually end up selling for less
- Slower sale
- Very time consuming
Using a Real Estate Professional
Pros
- Access to local expert
- Vast array of knowledge (most of the time years of experience)
- MLS & other third party website access for advertising
- Agent handles getting photos, videos and even 3D walkthroughs done
- Has access to extensive sales data to help price your home right
- They handle showings and getting feedback
- Agents know what to look for in qualified buyers and which ones won’t be worth your time
- Security measures in place for you
- Handle all documents needed as well as keeping them on file for multiple years afterwards
- List of trusted companies for repair work, as well as advising on which ones you can negotiate not to fix and which ones to
- Quicker sale times, can close in as little as a couple weeks if all is in place
- You don’t have to deal with buyers directly
- Professionals do the work for you so you don’t have to
- Homes usually sell for more
- Our professionals can answer any questions you have along the way and keep you informed
Cons
- You have to pay a % of sale for agents commission
- You won’t deal with buyers directly, it’ll be done through agents
- You may be required to bring homes up to code if it doesn’t meet standards and its something found out in inspections
If you’re looking into FSBO more than likely its because you don’t want to pay a commissions fee, a lot of the times it comes down to the simple question, does hiring a professional really add value? We believe that it can be, but want you to explore all your options.
What do commissions do for you?
Commissions pay for skill sets that could potentially result in a higher purchase price, the zestimates or free calculators online just wont cut it and could leave you with either your home being priced too high or too low and both can leave you with less money in your pocket. Real Estate Professionals have access to market data from currently listed, under contract and actual closed homes in your area. They also have negotiation knowledge/techniques and know how to respond to get you the deal you need.
Additionally as an example there was research done by the National Association of Realtors in 2014 that median prices of For Sale By Owners was $210k. When the sellers knew the buyers (which happens in majority of FSBO cases), the median price was $151k, significantly less. Want to know what the median sale price was with an agent? $249k, so that could potentially be a lot more money left on the table.
Now with all that being said we are not guaranteeing your home will sell for significantly more or not, this is definitely a home to home basis and some owners have a lot of success with selling by themselves, others see the value in hiring a professional. We hope you find what works best for you and your family, our teams goals are to help anyone and everyone who needs us and to educate where ever we can. If you’re curious as to what we specifically offer for our sellers we would love to sit down with you and discuss more.
– BHT