Is Selling a Home FSBO a Good Idea?

Posted by Justin Havre on Thursday, July 25th, 2019 at 11:30am.

Challenges of Selling a Home FSBOSome may think that doing away with the middle man and taking a chance on selling a home FSBO will pay off for them. However, those who have never sold a home before may be unaware of the amount of work that is involved with marketing and selling a home.

Homeowners already have their hands full in making repairs and getting a home ready to show to potential buyers. Even though a homeowner may not have to pay a commission when selling a home themselves, is it worth the extra time and effort? Understand more about the issues that can arise when selling a home without an agent.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Considerations when Choosing FSBO

There are homeowners who think that they can shoulder the work performed by an agent and avoid paying commission. However, it can already be hard to sell a home in a buyer's market and it can put more stress on an owner to attempt to go the FSBO route. The seller will not only have to make repairs on a home but at a minimum, learn the basics of marketing a home and what is involved in the home closing process. On the other hand, an agent is licensed, knows the local market and has connections on which to rely on when it comes to selling a home. Lastly, it may not always be a wise decision to choose FSBO, as an owner may not get optimal value for their home or may have it linger on the market.

How to Price a Home

A local agent understands how to best price a home, an important element on a listing for potential buyers. A significant gap can be seen between average FSBO sales prices and those represented by an agent. FSBO sellers often price too low to sell their home. Money is being left on the table and the average seller is losing out on the potential full value of the home. However, pricing too high can turn off buyers and make it harder to garner interest. Working with an agent can help a first time seller get a clear idea of a fair price for their home, based on its condition and the current market.

How to Market a Home

Homeowners can have a hard time being objective about their property. They may not be able to prioritize areas for repairs and updates, or know which minor updates can boost their home's curb appeal. They can easily turn off buyers, such as with a poor paint job or amateur photographs of a home in the listing itself. An agent is in the position to walk a homeowner through the process of getting the property ready to be listed.

Homeowners acting as their own agent for the first time are going to face challenges. Questions will arise such as how to create a listing, what legal forms are needed to sell a home and how to deal with agents. A homeowner can learn what is required in such areas, but it may take up a significant amount of time and lead to unnecessary stress.

Selling a Home Requires Work

Agents have a range of resources available to them. They can easily create, edit and share listings on social media platforms. Tools and networks can be utilized that are not available to the average homeowner. An agent is also responsible for scheduling showings, objectively walking visitors through a home and taking back feedback to the seller. Agents are simply better positioned to get a home seen by the right pool of potential buyers. Selling a Riverview home for a price supported by the market and attract a larger pool of qualified buyers when working with an agent.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

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