02 Nov Why For Sale By Owner May Not Be Such A Smart Choice
For Sale by Owner or “FSBO” transactions are often seen in a seller’s market, where homeowners want to profit as much as possible without having to pay a commission. Sounds like a SWEET Deal Doesn’t It? But Is It Really??
Research shows utilizing a professional real estate agent will get you a higher profit, generally enough to cover the commission as well as put more money in your bank account. Sounds Good Doesn’t it? According to the National Association of Realtors 2016, there is an average difference of $60,000 between the average FSBO and agent represented home. WOW, what would you do with an extra $60,000?
Here are Some of Our top Reasons Why FSBO May Be More of a Headache than You Think!
- You Post and Sell Things Online~ Meet them at the Local Police Station or Walgreens to make the transaction. YET, you are willing to let perfect strangers in your house? YIKES!
A professional realtor not only accompanies his/her clients to the showings, we screen our buyers ensuring your home will be shown to qualified buyers. Saving you time and energy from showing your home to under-qualified or unscrupulous buyers, as well as noisy neighbors.
- Posting An Ad Online and Marketing Your Home may not be as easy as you think
For Sale by Owner will need more than just a sign out front of your home. Picking what online marketing is confusing and tricky to say the least.
A professional realtor has access to a multiple listing service that reaches all area agents, search engines that allow specific criteria, and links to hundreds of websites. In order for a private owner to accomplish that amount of wide spread exposure would cost him/her far more than the commission they were trying to save.
- Homes for sale by owner could be priced wrong
Those who put their homes on the market as FSBO tend to set a price based on an online assessment tool. “Using a free online valuation tool is like bringing your doctor a printout of your Google search about symptoms and possible cures,” says Jon Sterling, a real estate consultant. “There’s no substitute for actual market knowledge.”
A real estate professional will provide an accurate home value based on a comprehensive market analysis to help you arrive at the right listing price. “The goal is to make sure you’re pricing your home in the sweet spot—not too high so that you are turning off potential buyers, and not too low so you are leaving money on the table.”
- Spending Too Much to Bring Curb Appeal!
A home owner has a hard time viewing his/her home objectively. An over grown lawn, broke down mailbox or That Bright Purple Wall with Orange Stripes may be a declaration to your favorite team; however, to a buyer it may be just enough for them to move on the next home. On the other hand, you might end up investing far more money than is needed. You are convinced your 20 year old kitchen needs a complete overhaul a cost of approximately $50,000. Instead, an experienced agent may recommend an $8,000 investment for paint, staging, and minor repairs, which can still net $45,000 above a targeted price.
Your professional real estate agent has an eye for detail and can recommend simple, budget-conscious swaps that can translate into real dollars when it comes negotiation time. A Real Estate Professional knows how to get the most bang for your buck.
- Preparing your own paperwork can be frustrating!
Unless you have a background in contracts or law, you might want to leave the paperwork to the pros. A sales contract can consist of up to 12 pages of legal interpretation, then the closing documents can be 20 or more! A home owner could open him/herself up to lawsuits by not knowing state requirements. For example, houses set inside a Property Owners Association, Like Rainbow Springs, Require a Comprehensive Rider and Disclosures; houses built before 1978 require an addendum regarding lead-based paint and some states need a release confirming the presence of carbon monoxide detectors.
How an agent can help: Your agent will take care of all property disclosures and corresponding documentation to avoid future liability. As well as walk hand in hand with you step by step through the entire process making sure you are content and covered.
Now, if those aren’t enough reasons, give us a call and we can give you some more! We look forward to working hard for you! Rainbow Springs Realty Group, 352-489-6595