Why For Sale By Owner Sales Fail

Why For Sale By Owner Sales Fail

While it is true that a homeowner will know their residence better than any other person, that does not mean they know how to market it or sell it.

Many homeowners find themselves sorely tempted to use a For Sale by Owner (FSBO) approach when it comes to marketing their residence. Unfortunately, in the vast majority of cases the homeowners sell their home for considerably less than it was worth because they didn’t fully understand the value of their residence.

Why People Choose FSBO

For the most part, the for sale by owner process is one that is highly attractive to homeowners because they don’t have to pay a real estate agent and with the information available on the internet believe they can sell their home for a greater value.

However, statistics show that real estate agents sell homes faster and at a higher value than FSBO and the difference is substantial with a National Association of Realtor’s study showing an average of a $41,000 difference.

Why Choose a Realtor?

There are several reasons why going with a Realtor makes good sense when you sell your home, particularly when you want to sell it quickly and for the most value possible.

Market Data: Realtor’s have access to market information about similar homes on the market that have sold in your community within the past few months that demonstrates what your home is worth. This means that the residence can be properly priced and sell quicker as compared to most For Sale By Owner homes that often are priced too high and don’t sell quickly at all.

Improve Saleability: A good Realtor can tell you what needs to be changed in order to sell your home faster.

Better Presence: Many homeowners are not available when most buyers want to see a home. A realtor can be there for you in order to properly show off your residence and help make the sale. Many Realtors have aggressive marketing campaigns that increase exposure to qualified buyers.

Negotiate Properly: Realtors are skilled negotiators that know when to push and not give so that you can get the best price possible.

Screen Buyers: Very few homeowners know the difference between a legitimate buyer and someone just walking in off the street. A Realtor will screen visitors so that only the ones who are legitimate with a proof of funds are looking at your home.

Of course, one of the biggest dangers when it comes to for sale by owner is that homeowners will often wind up negotiating with a professional working for the buyer. All too often, the professional will get the better end of the deal and prevent thousands of dollars from getting into your pocket all because they managed to finagle out of you a bad deal. Worse, without having a real estate attorney looking over the final contract you may leave yourself open legal issues that may pull even more money from your pocket.

Do not risk becoming another For Sale by Owner (FSBO) that doesn’t sell or worse, sells for $41,000 less than its worth!  It is best to go with an experience Realtor who can protect your interests and sell your home in the shortest time for the best price possible.