Home owners who try to sell their homes themselves usually do it in order to save money on commissions. Selling your home you will not necessary save you money. Recent researches and surveys show that the homes sold with assistance of real estate agents sold for more and sold quicker. In addition, overpricing your home does not mean you will sell it for more. Here is the main reasons why trying to sell your home on your is not the best idea.
1. Homes For sale by Owner are not priced correctly.
This is the most common reason why the homes don’t sell in general whether agent assisted or for sale by owner. Most of the home owners are not aware of the market conditions as well as experienced real estate agents are. The home owners tend to overprice their homes and therefore can have less interested buyers due to unrealistic price. Furthermore, the buyers of a for sale by owner property are looking for a bargain or a great deal assuming the homeowner will not pay commission they expect to have great savings as well. The home price should be based on recently sold homes and not on active homes. Most homeowners base their price on the active homes on the market and also are biased in their price determination vs. an experienced real estate agent who performs a comparative market analysis (CMA) to the determine the price in objective non biased way. Correctly and competitively priced home will attract more potential buyers and sell faster.
2. Buyer’s Agents try to avoid For Sale by Owner Homes. In most cases buyer’s agent will avoid showing poorly staged and overpriced homes. In addition, some real estate agents might avoid to show homes that do not guarantee them a fair compensation for their services. Because more than 80% of the buyers work with a real estate agent, a for sale by owner house can lose a substantial amount of potential buyers. One more important fact is that the FSBO owners will waste their time on buyers that might be not financially qualified to purchase the home, while real estate agents will only work with qualified and pre-approved buyers who can purchase the house for cash or close quickly with a mortgage. Besides that first time home buyers will be afraid to work with FSBO and prefer an experienced agent to guide them through the process of their first home purchase.
3. Small exposure and hardship to market your home.
Most sellers are not familiar with the ways to market their homes. Many people believe that it very easy to sell their home on Craiglist.com or put a FSBO sign in their yard. In fact in is very important to take very nice bright and appealing picture and as well as have a strategic marketing plan for a great exposure. Many real estate agents have great experience marketing the property online as well as have many resources to allow them to do it. Real estate agents will schedule all showings and make the appointments which will make the process much easier for the seller. In order to show a home FSBO will need to adjust to the buyer’s schedule which can be not easy to show the property.
4. Wrong Paperwork
Not all home sellers are familiar with all disclosure rules and laws, many are not familiar with how to negotiate and deal with inspection and appraisal issues. It is always recommended to hire an experienced real estate attorney to review all contracts; however attorneys are not experienced in negotiating inspection and appraisal issues. Have an agent following all the paperwork and the attorney who will review all the paperwork and provide you with the needed legal advice will keep the deal pursuing toward closing smoother and faster.
5. Location and Condition of the property.
Some FSBO’s do not actually know how to prepare their home for sale and make it more appealing. First impression is very important, if you create the best first impression for your home, you will have more potential buyers come and take a look if you posted right photos online. We can provide you with free checklist and information about how to prepare your home for showing. If the location is not very desirable there are different things you can do make the house more appealing from the outside it might dilute a little bit the location factor.
If you would like to sell your home by owner I can provide you with a free checklist e-book, I addition I have a special FSBO program that you can save a lot of money if you decide to use my service.
If you considering to sell your house by owner contact me for free CMA and price opinion, I will also send you a free for sale by owner guide.