While selling your house all on your own may sound like a surefire way to save money on real estate agent commissions therefore increasing your bottom line, it is not that easy. Selling a home is more complicated than even selling a car. However, if you are still planning on giving it a shot – review the following for some common problems sellers who list their home “for sale by owner” (FSBO) face.
The Price is Wrong
Knowing how to price a home is an arduous task for even the most seasoned real estate agent. Real estate agents prepare what is known as a Comparative Market Analysis (CMA) before they go about setting the price for any of their clients’ homes. A CMA is a compilation of current market information, usually from the preceding three months, about houses that are similar to the home being listed – whether it is in size, location or amenities – that are either currently on the market, have been recently sold or whose listings have expired due to a lack of adequate offers. A quality CMA is a critical component of establishing the fair market value (FMV) for your home, as the analysis reveals what other homes are currently listed at, how long on average it takes similar homes to sell and what the difference is between what similar homes have been listed for versus what they have actually sold for. Accurately pricing a home when it is For Sale By Owner is a difficult task, not only because finding and gathering all the information required for a CMA is a large undertaking, but rarely are owners able to then subjectively judge the value of their homes comparatively.
You Jeopardize Your Online Presence
The majority of potential buyers nowadays will turn to the Internet to search for their next home. Almost all real estate agents will invest a good amount of their time and money to create robust online listings for their properties, incorporating the use of professional photographers to stage each home and capture it in its best light. Agents see the time they spend creating these online listings as a worthwhile investment. They usually also send weekly e-mail blasts containing their newest listings to hundreds of former, current and prospective clients, other agents as well as real estate investors. While your iPhone may take quality photos, real estate agents not only have professionals to help them out, but they know what photos to include in each specific listing to catch the eye of potential buyers.
It’s a Major Time Commitment
As soon as you list your home for sale by owner, you open yourself up to the possibility that potential buyers could start looking at it as soon as that very same day. Real estate agents are committed to making themselves reachable and available to not only their clients, but for potential buyers as well who are interested in any of their properties. Selling a home is a full time job, and if you don’t have the time to dedicate to it you will likely miss out on a ton of quality buyers.
You Can’t Qualify Buyers
It is very common for people to go visit an open house or check out a property when they have no intention of buying it. You can wind up fruitlessly spending most of your own time showing your house for really no reason, as well as a good amount of your money hosting open houses. Most buyers prefer to go through an agent or broker when looking for potential homes so they don’t have to discuss money directly with the seller. Agents are able to contact lenders and validate whether or not a buyer is preapproved for the sufficient loan amount, or have the qualifications to obtain adequate funding.