Inman Weighs in on Why Sellers Should Exercise Caution When Considering “For Sale By Owner”

A recent article published on Inman outlines the top reasons why a potential seller should reconsider listing For Sale by Owner (FSBO), highlighting potential issues from hidden costs and fees to the complications of the transaction process and saving oneself the headache of investing the time it takes to properly market and sell a home.

Here are my top 3 takeaways from the article that every homeowner should consider before committing to FSBO:

  1. Are you prepared to handle a complex transaction and the possible issues it might present?
    • Agents protect buyers and sellers from potential scams, such as “fraudulent papers, foreign buyer deposits, purchases through a third-party and asking for personal information,” protect from liability issues by catching mistakes and/or using E&O insurance, and handle the complex paperwork required throughout the transaction process. A qualified broker is also able to anticipate and solve problems that arise during either the transaction process or inspections.
  2. Do you feel prepared to maximize your return on investment?
    • Though it may initially seem as though a seller is saving money by choosing FSBO, homes listed by their owners tend to sell for less, as 2015 numbers indicate that “FSBOs lost about 16% of the sales price,” largely due to homeowners simply not having the time to properly market a home, nor the market expertise to price competitively.
  3. What is your time worth to you?
    • Choosing FSBO means a home is likely to spend more time on the market: “on average, 18% of FSBOs were unable to sell within their chosen time frame last year.” In addition, it’s important to think about the time it takes to properly research the market, understand contracts and conduct showings.

Considering making your next move? Read the full article here or contact me to discuss why hiring an experienced real estate agent is a must-have in our current market.

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