FISBOs -FOR SALE BY OWNER
Should You Sell Your Home Without a Real Estate Agent?
You've decided to sell your house or condominium. Your next step is to decide whether you want to list it for sale with a professional real estate agent or to sell your home as a For Sale By Owner.
Can you set the proper asking price for your home?
Unless you are a professional appraiser with access to up-to-date recent home sale prices of nearby residences, you probably don't know how much your home is worth. For Sale By Owner home sellers either overprice or underprice their home.
If a home is overpriced, it will suffer on the market unsold. Home buyers, and their real estate agents, know when a home is overpriced based on recent sales prices of similar neighborhood homes.
Although 87% of house buyers purchased their home or condo through a real estate agent, there are individuals who prefer to sell their home (FSBO). The primary reason For Sale By Owners going it on their own is to save the home selling real estate agent commission.
Eighty percent of For Sale By Owner home sellers finally decide to list with a professional real estate agent after 30 to 60 days.
The real truth is that FISBOs only account for approximately 8% of national home sales. The average FSBO home sold for approximately $190,000 when compared to $249,000 for those hiring a professional real estate agent to sell their home.
Critical problems for FSBO house sellers are:
- Getting their target sales price: 15%
- Increasing complexity of the transaction process: 12%
- Selling their home within their planned length of sales time: 13%
- Amount of time required to market and show their property: 3%
- Who will pay the closing settlement costs, the title insurance, the recording and title transfer fees? 12%
- Security concerns about strangers walking through their homes
People selling their home through a real estate professional receive more money than those selling by FSBO.
Real estate agents are experts in marketing your house or condo. A Realtor® can sell your home for more money in less time.
Real estate professionals are trained to show your home more objectively, since they are not emotionally attached to your home. Agents will also check the financial ability of buyers to purchase your home before allowing them onto your property. Agents can effectively handle any potential home buyers’ objection to not buying your home or use it as a ploy when negotiating with you to lower your homes' selling price.