Thinking About For Sale By Owner?

Have you been thinking about doing a For Sale By Owner or a FSBO as it is sometimes called? Choosing to sell your home is a big deal and it should not be taken lightly because buying and selling a house is one of the biggest transactions you will make in your lifetime! It is important to research and plan carefully when you are thinking about selling because no matter what, selling your home is not free. There will be costs associated with the sale of your home, whether or not you decide to do for sale by owner or hire a Realtor, you will always incur escrow and title fees and there may be other expenses like HOA disclosure and transfer fees, certification fees, and more. Highly experienced sellers might feel comfortable with selling their home by owner, but the real estate process is always changing and it can be very difficult to stay up-to-speed on documents, disclosures and “rules of the road” so to speak. Doing for sale by owner may sound like an easy way to save some money, however, you may not save as much as you think. There have been many studies that show that homeowners who list their house for sale with a Realtor earn a higher sales price than those who do for sale by owner. Hiring a Realtor to represent you will also ensure your best interests are upheld in the transaction which will have many moving parts along the way.

I have put together a list of 5 reasons why a for sale by owner may not be worth your time or your pocket book in today’s real estate market:

1. Marketing Makes a Difference: Home buyers these days are relying more and more on the internet when they are looking to find their next home and most buyers also use a Realtor to represent them. Marketing truly makes a difference and as a home seller, it is important to realize that a Realtor will maximize your exposure to potential home buyers and will allow your listing to be seen by the masses via internet real estate marketing, not only on the MLS, but your listing will also appear on all of the major home search websites. Professional looking listing pictures and the homes overall presentation are also very important because if the home doesn’t show well online, then it is likely that buyers will skip over your home and go on to the next, before ever setting foot in the front door.
2. Loads of Documents: There will be plenty of paperwork required in order to sell your home, and the paperwork will not change if you are doing a for sale by owner. The only difference is that you will be on your own with the documents or at the very best, relying on the buyer’s agent to walk you through the paperwork. It is important to remember that in this second situation, the documents may be handled appropriately by the buyer’s agent, but the key word in that statement is buyer’s agent…the real estate agent in this scenario is representing the buyer and their best interests and not the sellers.
3. Negotiations Galore: There will be multiple opportunities for negotiating during your real estate transaction. The initial negotiations will establish the agreement on the purchase price, closing date and any other terms related to the sale of the home. But, there are also a couple of other times during a transaction where negotiations may be critical. The home inspection and repair requests as well as the appraisal all have the potential for needing a strong negotiator. Working with a true professional is so critical to a successful closing. Being able to rely on someone with a detailed knowledge of the process, timelines and “rules,” will be invaluable to you.
4. Don’t Waste Your Time: Selling your home by owner is not an easy task, although you can certainly be successful and have a wonderful experience, but it is important to set goals and if you are dealing with a timeline for your move, then it will be worth it to hire a Realtor to get the job done in a timely manner with ease and professionalism. If time is not an issue, then you can always try your luck with a FSBO and see if you are able to handle the transaction and details on your own.
5. Experience and Knowledge Matter: Do you know what earnest, escrow, title, recording, seller disclosures, BINSR, and inspection period mean? The list of real estate terms is lengthy and if these terms cause you stress or anxiety, then doing a for sale by owner might not be the right choice for you. Sellers have rights and responsibilities as well and experience and knowledge matter in a real estate transaction. There are man documents and timelines to manage, and many different people will be involved from lenders to escrow officers, home inspectors, appraisers and many more. It is important to work with a trusted real estate agent who is familiar with the process and will be able to walk you through the transaction from listing to closing.

If you are thinking about doing a for sale by owner, then be certain you know what you are getting yourself into and do a lot of research up front. Some homeowners are very successful in doing a FSBO, and I always encourage them to go for it, however, many others will find the process to be overwhelming and hiring a Realtor may be the best decision for them. If you would like to discuss the possibility of listing your home for sale and learn more about the benefits of using a Realtor to represent you, then please feel free to reach out! I’d love to hear from you!

April M Anderson , REALTOR