People aren’t selling their own homes as frequently as they used to. Here’s why.
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Want to sell your Southwest Ohio Home? Click Here
In today’s market with rising home prices and a lack of inventory, some home sellers might consider selling their home on their own. In the industry, this is known as for sale by owner, or FSBO. There are several reasons why selling FSBO might not be a good idea for the vast majority of sellers:
- Exposure to prospective buyers. Recent studies have shown that 95% of buyers are looking for homes online, compared to 17% of buyers looking in print or newspaper ads. Most agents have an internet strategy to promote the sale of your home.
- Results come from the internet. 49% of buyers find their home on the internet, 31% find a home from their agent, 7% find one through a yard sign, and 1% of buyers find their home in the newspaper. The days of selling your house by putting a sign in the yard and putting it in the paper are long gone. Having a strong internet strategy is crucial.
- Too many people to negotiate with. Here is a list of some of the people you’ll have to negotiate with if you decide to sell your home FSBO: The buyer, the buyer’s agent, the buyer’s attorney, the home inspector, the home appraiser.
- The paperwork is overwhelming. The paperwork involved in selling a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people selling FSBO has dropped from 19% to just 8% over the last 20 years.
- You net more money when using an agent. Many people think that they will save money by not hiring an agent and not having to pay a commission. That is the same reason that buyers are attracted to FSBO homes. However, the buyer and seller can’t both save on commission. A recent study by Collateral Analytics revealed that FSBO home sellers don’t actually save anything by doing so. In fact, they may be costing themselves more by not listing with an agent. Why would you choose to list or buy on your own and manage the entire transaction yourself when you can hire an agent to do the work for you and not actually lose any money.
The bottom line is that before you decide to take on the challenges of selling your home on your own, sit with a professional in your market and see what they have to offer first. If you have any questions for me, I would be glad to hear from you. Give me a call or send me an email today.