The many worries and concerns of the “For Sale By Owner.”
There are two ways to get a buyer for your home when you make the decision to sell your home. You can either put it on the market, by hiring the services of a licensed real estate professional or by sell it yourself. Some homeowners put up a “FSBO” (For Sale by Owner) sign in the front yard of their home or put their home on a “FSBO” website rather than hire experienced Real Estate Agent. The major motivation for this is to save money by way of the commission that will be owned to the Real Estate Agent. Some homeowners also feel that they know their home better than anyone else and that nobody else is qualified to know what their expectations are with regard to the sale and the money they expect to get. Is this a wise decision? Which is better, hiring a professional to sell your home or going the ‘For Sale by Owner’ way?
Consider these possibilities:
- Are you up to date with the latest rules and regulations in the real estate field? Many owners are not aware of the intricacies in the laws regarding sales in real estate. Not knowing this can lead to a significant waste of time, resources, money, and possibly getting sued.
- Selling a home is a full time commitment. If a potential buyer comes along when you are at work or engaged elsewhere, you could be losing out on a possible buyer. This would never happen if the house sale was entrusted in the hands of a professional Real Estate Agent, whose career is home sales!
- Even if the owner has managed to get his/her home sold, not knowing the legalities involved could result in potential losses. If the owner does not know the fine print in the purchase and sale agreement, or the conditions and risks involved, it could end up as a major loss for the owner.
- Not knowing how prices are set in the real estate market, owners often set themselves up with prices that are far below the market standard or way over price their home. Not knowing how to negotiate and how much to negotiate, they may end up selling their house for a much lower price. If the home does not sell for a long time, owners may even get desperate and sell it off to the first buyer who comes along at a price that is much lower than what they would have gotten, had they employed the services of a Real Estate Agent.
- Owners often do not have the experience to screen potential buyers and differentiate the serious buyers, the lookie loo, and the non qualified buyer or possibly a person who may try to rob you. They could get caught up with a buyer who wastes their time, meanwhile, losing out on a serious buyer. An experienced Real Estate Agent, can readily screen out the real buyers from the time wasters.
Bottom Line
When you are not an experienced Real Estate Agent yourself, and put your home “For Sale By Owner”, all the factors mentioned above may make it not worth the extra money that you save by way of the Real Estate Agent’s commission! After all, when you want a job performed, don’t you hire a licensed professional? Therefore, selling your home is no different.
Have questions about real estate you want answered? Even if you aren’t planning to buy or sell for years, I hope you’ll feel comfortable calling me to talk about your unique real estate situation. I’d love the opportunity to become your agent long before you actually need one. ~ Lynda Van Wie