FSBO is the abbreviation used within the real estate industry for “For Sale By Owner”. We understand that many home owners choose to attempt to sell their home without the assistance of a realtor, which is usually a decision based on the desire to make as much money off of the sale as possible. Not having to pay a commission to a realtor is very appealling to a seller, which is clearly an advantage of “selling by owner”. However, there are also a lot of disadvantages and many misconceptions regarding FSBO that I’d like to clarify below:
“USING A REALTOR WILL COST ME MORE MONEY”
Listing your property for sale with a realtor comes at no cost to the seller. A realtor only receives compensation if the property sales and that’s usually a small percentage of the selling price. This amount is of course always negotiable, but a small price to pay for the experience that comes with listing your property with a realtor.
“MY HOME IS NICE ENOUGH TO SELL ITSELF”
Many home owners feel that they’re home is nice enough to sell itself and all that’s needed is a sign in the front yard with a phone number. Sometimes this is all that’s needed, especially in a very popular area or neighborhood. Many times though, even the nicest properties require a good amount of marketing and promotion. A good realtor will spend the time pushing your property and using his/her expertise to drive potential buyers to find out more. Many times the exposure your property receives can be 10x much more than the sign sitting out front.
ALL A REALTOR DOES IS SHOW MY PROPERTY. I CAN DO THAT MYSELF”
While it may seem that the only service a realtor provides is allowing others to view your property, there’s a lot more that a realtor does behind the scenes. Some home owners may have the time to show their own property, but for many it could prove to be a big inconvenience as well as an inconvenience to potential buyers. A realtor can help free up time for a seller by handling showings, but here’s a quick list of other “duties” that a realtor might perform:
1. Promoting and marketing your property
2. Scheduling showings and handling all inquiries about your property
3. Serving as the intermediary between sellers and potential buyers
4. Offers expertise and insight on overall property appeal
5. A realtor’s experience and knowledge of contracts and the paperwork involved with the purchasing process is priceless
If you have any additional questions about the pros and cons of trying to sell your property on your own, I’d be more than happy to help. You can reach me by email at hector(at)habitationrealty.com or call 832.868.6636