5 Reasons For Sale by Owner is not wise
Home sellers can often be tempted with selling a home on their own, without an agent, also known as ‘FSBO.’ These sellers may question the value of an agent and are often enticed by the possibility of saving money.
What they’re often not aware of is they may actually save a large sum by hiring a listing agent. Sellers will also save an incredible amount of time, hassle and potential liability.
Here are 5 reasons “For Sale by Owner” is not a good idea:
- Using an agent will most likely save the seller money. Studies have shown that a home listed by the owner will on average sell for 16% less than homes listed by an agent. 16% is a far bigger number than the commission given to an agent. Homeowners often don’t know the market or understand market reports. Hidden costs can also add up quickly.
- FSBO homes often stay on the market longer. Agents have experience and multiple avenues to market a property. They also have more exposure to potential buyers and can show a home when the seller is not present. In addition, there’s no incentive for a buyer’s agent to bring a client to a FSBO home.
- Paperwork headaches. Understanding all of the paperwork involved may be one of the most difficult parts of selling without an agent. Who can one call with questions? Sales contracts, occupancy agreements, property disclosures and other records can be complex. Industry disclosures and regulations have increased over the years making paperwork more and more difficult to an inexperienced seller.
- Liability. All of the liability in the transaction is on the seller without agent representation. Agents can often catch mistakes but even if he/she misses something, E&O insurance is available. Mistakes are often made and owners trying to sell without an agent don’t have the experience to lessen the chance of errors. The last thing a seller wants after successfully selling his/her home is a lawsuit.
- Time. Time is valuable and selling without an agent will eat up a huge chunk of it. Without the expertise or access to the resources agents use, FSBO’s will be surprised at how much time will be involved.
Selling without an agent may seem enticing at first but here at Dash Realty, we strongly advise against it. An experienced Real Estate agent is the way to go when listing a property!