Selling For Sale By Owner, Not a Great Idea In This Market
Why not? According to the national real estate blog, Keeping Current Matters, it is too volatile a market right now for the FSBO seller to recognize all the signs of a bad deal. Here are some points to consider:
Exposure to buyers — It is almost impossible for a FSBO seller to create the social media buzz and internet site exposure that a Realtor can provide. Almost 70% of prospects are found this way and 1% find it in a newspaper and 7% from a yard sign.
Too many moving parts — Today’s real estate contract involves many disclosures and a lot of exposure to liability that, frankly, an agent takes on when they represent you. You really deserve someone who understands all the components of a transaction.
A FSBO is more difficult to close escrow on because the buyers are so much more sophisticated. And they are smart. They may negotiate a sellers profit right off their net sheet by asking for repairs or items to stay with the home, that without the guidance of an agent, the seller may pay more than necessary.
A FSBO seller will net more money with an agent, even when paying commissions. Why? Because a FSBO seller is unlikely to negotiate as well as an agent, and they are also more likely to underprice their home in an effort to sell quickly, or to do the opposite and over price the home and have no activity at all. Consult an expert.