Why FSBO Home Sales Fail Most of the Time
For Sale by Owner home sales seem like a good idea to save home sellers a few bucks until you research the facts. According to Realtor.com, most people who sell their homes via the FSBO route, do so to avoid paying a Realtor® commission. Those sellers may not always get the best price for their homes if they forgo the assistance of an experienced Realtor®, a costly mistake.
Most sellers think that if they’re doing all the work by going the FSBO route, they’ll save money, but that’s actually incorrect. They could be missing out on a lot of money by trying to sell their homes on their own. Realtor.com also reports that in their 2015 Profile of Home Buyers and Sellers, there was an average difference of $35,000 between the median FSBO sales price of $210,000 and $245,000 median sales price of all homes!
Realty Today notes that FSBO sellers have to screen candidates on their own, which can also be tricky. Because they don’t have access to all of a Realtor’s resources, FSBO homes may attract less serious buyers, and that may not end well if it’s too late. FSBO sellers also need to close home sales on their own, and that is a binding, legal contract. With a Realtor®, sellers are more likely to have fewer loopholes in the home’s closing, and a trained Realtor® will make sure the contract complies with all local regulations.
Upnest lists primary reasons of an FSBO sale failing as over or undervaluing the home, expecting the home to sell itself, and skimping on the details. Realtors® spend lots of time promoting their active home listings, where an FSBO seller may skip steps or not fully understand what needs to be done, causing costly errors or omissions.
Experienced Realtors® will treat a home seller ethically, and offer expert knowledge and full service with detailed explanations every step of the way. A Realtor can also help you prepare your home for sale, price it to sell and actively promote a home, quite possibly getting your home to sell faster than an FSBO seller. Still not convinced? Check out these additional resources:
We urge not to go it alone. In some rare instances, the sale may work to your advantage and all of the details might fall into place without a hitch, but are you willing to take that chance with the largest sell of your life? We hope not.
Thanks for reading,
John L. Scott, Kent-Covington