For Sale By Owner, Not a Good Idea in a Changing Market
This is kind of a trick headline because the market is always changing, and that’s the whole point. One could argue that there may have been a day for a FSBO, but that era is long gone. In today’s world of litigation, multiple disclosures for the sale of a home, and so much internet competition for buyers, now more than ever, a seller needs a Realtor. Here’s a little food for thought:
1) Paperwork – In 1980, the California Association of Realtors sales contract was 1 page! Now, it is unending paperwork, seller transfer disclosures, appraisals, need of home warranty and Natural Hazard Disclosures. If you sell by owner, and don’t use these forms or services, doesn’t mean there would be any less liability.
2) Exposure to buyers – The Internet draws them in, and agents have literally a hundred sources that place their listing.
3) Negotiations – Because Agents are aware of all sales in the area, they can compare location,competition of other listings, condition, and make sure you don’t under price your home for sale.
4) Pricing – See last paragraph. This is hugely important and you could be your own worst enemy.
5) Current market conditions – Literally it can change overnight. What if 2 properties sell overnight and now your home is the only one like it to hit the market? Or what if you don’t know that single level homes are most in demand. Market conditions drive housing prices.