You might think you have it covered when it comes to selling your home. How hard can it be really? Well, harder than you think. Before you put up that “For Sale By Owner” sign, read these reasons you shouldn’t first:
1. It’s going to cost you a lot of time
You’ll have to take amazing photos of your home. Market your home to potential buyers. Show your home to people who aren’t serious buyers. Show your home repeatedly to serious buyers. You’ll be talking to so many people every day. Prepare for this to be your new part time job. Is it worth it?
2. You’ll lose money
Most people who do FSBO believe they’ll be saving money by not using a real estate agent. In reality, a good realtor will price your property to get the most money in the shortest time, earning you more of a net profit. If you’re worried about a 3% commission, try to imagine all of the money you can get with a professional negotiating on your behalf.
3. You can’t get as much exposure on your home as a professional
As a “For Sale By Owner,” you don’t have access to the MLS (multiple listing service), which is the main source for realtors looking for homes for their clients. A realtor has the opportunity to put your home on the MLS and also has a large network of potential buyers that they know personally. A small sign in your yard can only reach a fraction of the homebuyers in town, while a realtor has access to their buyers, their colleagues’ buyers and anyone searching for homes online.
4. Negotiating is complicated
There are usually a lot of people involved in the sale of a home. If you are selling your home by yourself, you have the potential of having to negotiate with the buyer, the buyer’s agent, the buyers attorney, the home inspections company, your bank, the home appraiser, etc. It’s a huge effort and can be overwhelming for someone who doesn’t have experience in the industry.
5. Incorrect paperwork could get you sued
Real estate transactions are complicated and hinge upon a lot of moving pieces like getting the inspections completed within the allotted time, making sure there is an accurate mortgage commitment from the buyer, etc. There is a lot of paperwork involved, and a FSBO who overlooks even one required form or legally mandated disclosure could face a potential lawsuit.