For Sale By Owner
Posted On June 10, 2018
For Sale By Owner
If you are considering the for sale by owner, or FSBO method to sell your property, there are some aspects of that process you should consider first. Sure you would like to put more money in your pocket by saving on the real estate commission. However, the reality is that you may be losing money by not hiring a Realtor to sell your home. When you choose to sell your own home, you may not have any idea of the challenges you will face. You may think it’s simple to do, but I can assure you it goes far beyond planting a for sale by owner sign and having an open house.
For Sale By Owner Statistics
Statistics gathered by The National Association of Realtors tell us that 8 percent of homes sold in 2016 were for sale by owner. The most popular methods used to market the homes are yard sign 35%, multiple listing service websites 26%, and through the friend and neighborhood grapevine 24%. Another interesting statistic is that 28% didn’t market the home at all, which indicates that they already had someone they knew ready to buy the property. The most common question asked by For Sale By Owners is, who pays the real estate commissions?
Challenges in For Sale By Owner Listings
From this NAR study, we also learn what tasks associated with for sale by owner situations that presented the most challenge to For Sale By Owner sellers. At 15%, getting the correct price won top honors, followed by selling in the planned time frame at 13%. Closely followed at 12%, understanding and tackling the paperwork came in third as an issue. At this point, please consider, if it were effortless, wouldn’t more people be engaging in for sale by owner situations?
Does a For Sale By Owner Save You Money?
Most of the time the answer is no. Consider that as an For Sale By Owner aka FSBO seller; you will be responsible for the following:
- Any Advertising To Promote the Sale of Your Home
- Professional Photos
- A commission to a buyers agent who may bring you an offer
- A flat fee to a for sale by owner website
- Possible legal assistance if unexpected issues arise
The Importance of Pricing Your Home
No discussion on the pitfalls of for sale by owner transactions would be complete without discussing pricing. Perhaps the most challenging task is getting the selling price right. This is where the for sale by owner seller has the most to lose. Be sure to get a free home market analysis from someone you can trust. If you price your house too low, you will be leaving money on the table. On the flip side, setting a price higher than the dictates of the market will guarantee it sits too long. Once the listing gets stale, potential buyers are going to be looking for the deal and put in low-ball offers. A final fact to consider when you think about pricing. In 2016 the typical for sale by owner home sold for $190,000 as compared to $249,000 for agent-assisted properties
Save Money When Getting Your Home Ready Sell
Whether or not you choose to go the For Sale By Owner route when you sell your home consider these activities. Getting your home ready for the market will not only net you more money, you will also sell your home faster. Do the cleaning, painting, and small repairs but put the marketing and sale of your home in the hands of a professional.