Homesellers, are you considering FSBO? Here's what you need to know.
According to the National Association of REALTORS', the For Sale By Owner (FSBO) strategy accounted for only 7 percent of home sales in 2018. When considering whether to handle the process alone or work with a REALTOR', you must ask yourself: Is FSBO worth it?
You may think the FSBO approach will save you money and time, but that isn't necessarily the case. Make sure you have a complete understanding of what's at stake before taking a gamble on FSBO.
The FSBO approach will not always save you money.
Are you attracted to the idea of selling your home without help because you want to save money? You may assume that taking another person out of the equation will cut costs, but that's not considering the potential lost value in an inaccurately appraised household or a poorly negotiated contract. These mistakes can add up in the long run, and end up costing far more than it would have to work with a REALTOR'.
For example, when working with a REALTOR' who's an expert in your area, you can ensure you're listing your home at the appropriate value. If you try to price your home yourself, you run the risk of pricing too high or too low. The online resources you can access when selling your home yourself can tell you how homes in your area have been valued, but won't give you insider information about why those homes were priced as they were. If you set a selling price that is too high, your home will sit on the market and buyers may question why the home hasn't been purchased yet. If you ask for too little, you may be cutting yourself out a profit.
If you work with a REALTOR', on the other hand, they will use their experience and the resources available through their brokerage and REALTOR' associations to recommend a fair asking price that will also result in a timely sale.
Unless you work in the real estate industry, negotiating your home's contract is also likely not an area of expertise. Contracts include many granular details that, if overlooked, can wind up hurting your sale and costing you more than it would have to hire a REALTOR'.
The FSBO approach will not always save you time.
Another argument for FSBO is that sellers may have more flexibility and control throughout the process, helping save them time upfront. While it's true you wouldn't have to interview agents, negotiate listing agreements and coordinate with a REALTOR', the time saved at the beginning of the process may end up costing you more time down the road. Without a REALTOR', you alone are responsible for:
Navigating the logistics. Make a checklist of everything you need to do to prepare your home for sale. Do you know what parts of your home need to be fixed up before it's ready to list? Are you available for every viewing with potential buyers? These pieces of the sale process add up, and may take more time to complete than you assume.
Coordinating the appraisal. If you work with a REALTOR', they'll be able to connect you to an appraiser they trust quickly and easily. If you go it alone, you'll need to find an appraiser and coordinate the needed appraisal inspections yourself.
Developing a marketing strategy. Figuring out how to market your home to potential buyers includes taking attractive photos of each room, writing effective sales descriptions, buying and installing a "for sale" sign, creating promotional flyers and posting the home to various websites. Depending on how much time a seller has on their hands, this could take weeks or even months to prepare.
Negotiating the contract. You shouldn't rush a contract negotiation, as your entire sale depends on it. Without counsel from a REALTOR' or lawyer, you're responsible for reviewing deadlines, contingencies, stipulations and the rest of the complicated jargon in the contract that you may not deal with on a daily basis. To ensure you're not missing any important details in a contract with a potential buyer, you should ensure you understand every single detail of it and work with a REALTOR' to help you negotiate.
Sellers who wish to go the FSBO route must understand the potential costs and time commitment they're undertaking. While it may seem attractive to go it alone in your home sale, the best way to save time and money is to work with a REALTOR'.
Mainstreet Organization of REALTORS' (MORe) is dedicated to anticipating and serving the needs of more than 18,000 REALTORS', affiliates and licensed appraisers in South, West and Northwest Suburban Chicagoland. MORe is the largest local REALTOR' member organization in Illinois and the sixth largest in the nation. To learn what a REALTOR' can do for you, visit www.Mainstreet.REALTOR.
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|Title Annotation:||Submitted Content|
|Publication:||Daily Herald (Arlington Heights, IL)|
|Date:||Apr 6, 2019|
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