Placing your house for sale by owner may sound like a great idea if all you are thinking about is not having to pay a commission, but most FSBOs do not consider what costs they are incurring and what important services they are forgoing. Here are some of the biggest problems with attempting a sale on your own.
1. Prospective buyers know that you are saving yourself the commission, so they automatically deduct the commission from their offer. While you may be looking for a bargain by selling on your own, the buyers expect that savings to be on their end of the deal.
2. You will have substantial out-of-pocket costs that you would not pay if you were using a Realtor, including marketing, advertising and legal fees.
3. You will probably not price your house correctly. If you overprice your home it will languish on the market and become stale. If you under value your home you will leave money on the table.
4. Coldwell Banker's research has found that sellers usually make 18% less on their FSBO homes than sellers of comparable homes who used a Realtor.
5. Buyers want a degree of separation from the sellers. It is very uncomfortable for a buyer to get a tour of the home from the owner. How can they possibly be honest with their impressions if you are watching them? Buyers need to be able to picture themselves in the home, not you. And how good are you at giving a professional home tour?
6. Coldwell Banker's listings are seen on over 350 websites by over 12,000,000 people each day. Do you really think the FSBO sign on your front lawn can compete with that?
7. Over 70% of sellers who sold their homes on their own said that they would not do it again.
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