FSBO (pronounced fizz-bo), or For Sale By Owner, is a way of selling your home without the use of a professional real estate agent or broker. The idea behind FSBO is that by selling your home yourself, you save the approximate 6% that would be the agents’ commission.
6% may not sound like a lot, but it can add up, especially on more expensive homes. But before you run off and decide to sell your home FSBO, you must remember that to get a savings like that, there must be a cost. So what’s the catch? Selling FSBO is hard. A lot harder.
Only about 10% of sellers that decide to do FSBO are successful at it. And not all of them end up saving themselves money. According to the NAR, FSBO sales that are negotiated through a real estate broker sell for 16 percent more than if the owners sell by themselves. So, even when you consider you're saving the six percent broker's fee, you're still losing 10 percent. Why do FSBO sellers often end up accepting a lower price for their home than they would with an agent? Mostly because buyers are savvy and know that a seller who is not using an agent is not paying a commission and has more to "give up" to the buyer.
There are of course other issues as well. Can you afford to make selling your home your full-time job? Because to get the highest net in their pocket, for FSBO sellers, that’s exactly what it is. Do you have the time and capital to spend on the marketing, advertising, inspections, paperwork, phone calls, showings, and problems that come up when any home is sold? Do you know how to learn how to do each of these things and have the time to do so? Factor in, also, that just reading about a topic does not make you an experienced expert; only experience can do that.
Selling a home is a complicated process - from figuring out how to price the home (for quick sale or maximum price?), to determining how to get the home in front of the most buyers and finally navigating through the negotiations, contracts, legally-required seller disclosures and related paperwork, inspections, and more negotiations on repairs or any other issues that arise - until you get to hand over the keys. You can't know what you don't know about each of these issues. You don't have to use us as your experienced seller's agent, but you should use an experienced seller's agent to protect you and, indeed, get your best outcome.
Selling with a professional agent also has other advantages. An agent can get your home listed on the MLS (Multiple Listing Service) and other popular websites where not only homebuyers but also other agents can easily find it. Professional real estate agents also have an extensive network that allows them to more easily find a buyer.
And for you to get the top price given the home's condition and your reason to sell, it is crucial to have a top negotiator who has navigated hundreds of offers and deal terms and transactions. That top price is one that factors in having real estate agent commissions paid. If you are not paying an agent's commission, you are not actually in this "top price" market; you've removed yourself into a limited niche market of buyers who are experienced enough or naive enough to "go it alone" and buy from a non-agent seller. The buyers have the law of disclosures to protect them and later sue you if you as seller fail to give them all the disclosures currently required by law. It is hard to know what you don't know; not knowing puts you at risk for thousands of dollars of liability. An experienced seller's agent protects you from that risk with their knowledge and their E&O insurance.
So before you decide to sell your home yourself, thoughtfully consider just how much time and effort you can spare for selling your home, as well as how important it is that your home sell sooner rather than later, and finally the risk of later legal liability for not knowing what you didn't know.
If you would like a free consultation about selling your home, Contact Frank.
"Sand to Sea Properties, Inc. provided stellar customer service from beginning to end. Throughout the entire process Frank and Lisa guided us and were always available to answer any question or concern, and were prepared for any curve ball throughout the home buying process. Their expertise in real estate became such a comfort to know we were working with top notch individuals who were not just incredible at what they do, but also enjoyable to be around. We highly recommend Sand to Sea Properties for your home buying or rental needs."
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