There are few things more appealing than saving money by doing something for yourself. Not only is it empowering, but it's also a way to expand one's own horizons. However, there are certain projects that are ultimately too complex for an amateur to take on. Unless a home seller is prepared to switch careers, a For Sale By Owner (FSBO) isn't recommended. See why it's better to leave it in the hands of the professionals.
Price Setting Is Everything
Setting a price, especially in a buyer's market, can have a huge impact on what the home actually sells for. Most sellers will look at what other homes in the area have sold for, forgetting that their property may be very different from those around them.
The original price of a home ultimately anchors the buyer's expectations. If the home price is set too low, even an intense bidding war may not raise the number up to anywhere near what the seller could have received if they'd started with the right figure.
Real Estate Is Complicated
There are so many details and documents involved in selling a home that sellers can't be expected to know it all. No matter how many online websites or books there are about selling a home on one's own, they simply can't cover it all. Plus, every neighborhood is governed by different rules and regulations, such as those of an HOA. A real estate agent knows the pitfalls, and they're trained to constantly look for the patterns that can make or break a sale.
A Limited Audience
Sellers are highly likely to miss out on the right buyers:
- A buyer's agent will typically steer them away from a FSBO home. There are simply too many unknowns in the equation.
- Sellers may not know where to find potential buyers if they're unfamiliar with the trends in their area.
When there are fewer eyes on the home, the home is almost certainly going to sell for less. This is exactly what the numbers show: a FSBO home does sell for less than a home sold by a real estate agent.
The Time Isn't Worth the Effort
A person without any other responsibilities may be able to execute a very simple home sale without any problems. But most people just don't have that kind of time to devote to making appointments, filling out paperwork, and grappling with title insurance companies. Each form for a home sale needs to be filled out perfectly. If the buyer's agent catches any discrepancies along the way, they will speak up. These kinds of mistakes can ultimately make buyers nervous enough to back out of the sale.
Longer Sale Periods
Apart from the possibility of the sale falling through, a Mount Juliet home sold by the owner statistically takes longer than those arranged by a professional. There's a process in real estate that may not be strictly necessary, but these norms are key to faster sales. Both the listing agent and the buyer's agent work together to expedite the timeline, but an inexperienced seller could quickly slow everything down.
A seller's job is already pretty complicated, even when they do hire a real estate agent. Making it even more time-consuming usually only adds to the seller's stress, and may end up costing a seller more money in litigation fees than if they had hired an agent.