Why FSBO is Not Your Best Option

Why FSBO is Not Your Best Option

If your getting ready to sell, you may be thinking I can list For Sale By Owner and save a few $$. While the cost of not having to pay an agent their commission out of the sale price of your home is certainly a consideration, there are a couple of things that are less obvious and sort of the “catch 22” here. Let’s discuss these 3 “catches”.

 

  1. Marketing - How will you market your home listed FSBO? Do you have industry connections in many areas and across many brokers like a Real Estate agent does? An agent who is well connected and has pricing expertise in their market is valuable in the success of the sale of your home as this is how other agents find and evaluate the credibility of the pricing of your listing. Another huge deal is the professional agent has a reputation that buyers may recognize and trust in the industry, thus making them a first place to look for interested buyers. In fact, statically homes listed FSBO on average, sit on the market longer and sell for significantly less than those listed by an agent. This is because of all the marketing your agent has the connections to be able to provide that would be out of reach for an individual home owner. Such as agent memberships in local MLS (Multiple Listing Services) data bases where all professional agents shop for their buying clients. Professional agents should also be well connected with the most popular property listing websites and more.  Agents often outlay large membership fees to have access to the best resources to promote their properties effectively to a large audience of shoppers.
  2. Time - Selling and networking your home will be the main job for the agent you hire. In this day and age, we are all busy. Hiring an agent who selling your home is their job will be beneficial to your home sale. Buyers need constant contact. This, is the job of a good agent. 
  3. Price - Its a proven fact that homes listed by owner sell for less and slower than house with a realtor. This is often an over looked consideration when homeowners are trying to determine if having representation and professional marketing coaching involved in their transaction is worth the cost. This is one transaction in which the statement, "time is money" has rarely ever been more true.  Homes that sit due to lack of exposure not only end up selling for less in the end, the extra mortgage payments (usually mostly interest paid into the current mortgage) are rarely seen as part of the money lost while spending extra months on the market.  Who wants to go it alone and even risk leaving money on the table? Especially when if you list with an agent, you can usually get more for your home in a shorter amount of time!

Want to know more about the benefits of listing with a realtor? Give us a call at <719-900-3338>.