Proven strategy to sell for top dollar
12 Reasons Why FSBO Sellers Should Hire a Realtor
The Market is Shifting
According to the most current data from the tax records, FSBO sales accounted for only 9% of all home sales in 2018 . Not too impressive, is it? Well, it gets even worse when you take into account that FSBO sales seem to have been steadily declining over the past decade from a 2004 peak of just 14% according to NAR.
Do You Know How to Really Qualify A Buyer?
If you’re acting as your own sales agent, how do you decide who’s a legitimate buyer and who’s just going to be wasting your time? Seller’s agents have the necessary experience to determine whether a buyer is properly pre-qualified with a reputable lender and continue to follow up to ensure they can actually close the deal.
Yard Signs Just Won’t Cut It
Making it hard to find your home, certainly doesn't help to maximize the market. Believe it or not, many FSBO home sellers still believe that all they have to do is throw up a “For Sale” sign in the yard and the world will beat a path to their doors. Sorry, but today’s tech-savvy buyers prefer to house-hunt in more methodical ways than simply driving around the neighborhood.
They Can't Buy It if They Can't See It
One thing you might not be taking into account as a potential DIY home seller is just how available you’ll need to be in order to show your home. Are you really going to be able to call in sick or cancel your plans every time someone wants to look at your home? Qualified potential buyers aren’t going to want to work around your convenience - your home isn't the only one of the market and making them jump through a bunch of hoops isn't likely to lead you to the highest price. In addition, buyers do not feel as comfortable to view a home as their potential home while the current homeowner is there following them around the home.
Your Facebook Friends Just Aren’t In The Market
Marketing via social media, what could be more up-to-the-minute? Sure, you may have hundreds of Facebook friends and Twitter followers, so that’s a potentially sizable audience if you decide to advertise your home that way. Think about it, though – how many of them actually live in your area? And of these, how many are actually looking for a new home? If you do manage to sell your home that way, you’ll be one of the lucky few. Social media helps which is why Realtors use it, however it's only one aspect of many that they use to sell a property.
Realtors Have The Right Tools
Just about everyone browsing their page is interested in buying a home in the local area. What’s more, Realtors are actively engaged in driving traffic to their own websites and they also have the capacity to list homes on the Multiple Listing Service (MLS). In order to list a home on the MLS, an FSBO seller will have to pay an outside agency several hundred dollars up front. A company that isn't likely to be invested if that property sells. Having access to the MLS helps us to dig through the comps, similar floorplans, disclosures to really give you an accurate analysis of your price.
Craigslist is Creepy
Okay, so you’re internet-savvy, you know all about Craigslist and similar online, free classified listings. But (and it’s a really big but) – these online classifieds are also seen as a happy hunting grounds for scammers, criminals, and dangerous people you really do NOT want to be admitting to your home.
You Don’t Want to Waste Your Time with Bargain Hunters
What’s more, FSBO homes are more likely to appeal to the type of buyer who’s out for a rock-bottom bargain-basement deal and may even go so far as to want you to give them a cut of the commission you’re saving by foregoing a Realtor’s services.
Drowning in Paperwork
In case you’re not already getting the picture, selling a home is pretty hard work! Not only do you have to find and vet potential buyers, but once you’ve found that buyer, then the real headaches begin. Every detail must be attended to in order to make the sale go through…and what’s more, if you neglect something crucial like a mandatory disclosure or inspection report, you may find yourself facing not just the loss of the sale, but also potentially serious legal repercussions.
In Fact, You Might Make More Money with a Realtor
And the survey says…bottom line, the average FSBO home last year sold for $208,700 while the average agent-assisted home sale was $235,000. This means that an agent-assisted home sale can net you an 11% larger profit. Assuming you paid a 6% agent commission split between the agents on a $235,000 home, or $14,100. In this scenario, you would still come out ahead - $12,200 if you sold for $208,700 assuming buyer didn't have an agent representing them and $18,465 if the buyer had an agent earning 3%.
Avoiding the Open Market Doesn’t Help you Capitalize On It
Real estate boiled down is a marketing business to capitalize on supply and demand in an industry where every product sold is unique. Every home has pros and cons that are different than the others that are on the market, or have sold recently. Having experience and in depth knowledge of how buyers are submitting their offers, which homes are seeing multiple offers and more gives Realtors the upper hand when it comes to preparing a home to capitalize on the market.
Have You Priced It Right? Are You Actually Leaving Money On The Table?
While “location, location, location” might be the home buyer’s mantra, as a home seller, that’s one variable you really can’t change. Instead, the key factor to selling your home in a reasonable amount of time is pricing it correctly, which isn’t nearly as easy to do as you might think. Sure, you can go online and see what nearby homes have sold for, but are you really comparing apples to apples here? An experienced Realtor will be able to perform a detailed market analysis which not only takes into account your home’s condition and any improvements you might have made, but can generate an up-to-the-minute temperature reading of just how hot (or not) your local market really is.
If you’re willing to put up with all the headaches of listing, selling, and closing on a home, and you don’t mind settling for what may well be a lower price, then an FSBO sale may be for you. If, on the other hand, this all sounds like too much work for too little payoff, you’re in good company. It seems that, according to a North Carolina Real Estate News article, over 80% of all FSBO sellers eventually wind up choosing to sell their homes by using an agent instead. If you’d like to skip the headache and proceed straight to the happy ending, Core Realty Advisors is here to help.
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