In today’s hot Northern VA market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own. This is known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of NOVA home sellers.
Here are the top 5 reasons Why Not For Sale By Owner:
1. Maximum Exposure to Prospective Buyers
Recent studies have shown that 94% of buyers search online for a home. That is in comparison to only 17% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?
I offer a strategic online marketing strategy for all my listings, which is a must in Northern VA. Over my entire 15 years as an agent, my average listing is only on the market 39 days. This isn’t by accident.
2. The Internet Gets Results
Where did buyers find the home they actually purchased?
51% on the internet
34% from a Real Estate Agent
9% from a yard sign
1% from newspapers
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy in an overall marketing plan is crucial and a must to get the most for your home.
3. Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:
The buyer who obviously wants the best deal possible
The buyer’s agent who solely represents the best interest of the buyer
The buyer’s settlement agent/attorney
The home inspection companies, which work for the buyer and will always find some problems with the house
The appraiser if there is a question of value
4. FSBO Has Become More Difficult
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
5. Net More Money When Using an Agent
Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.
Studies have shown that the typical house sold by the homeowner sells for $185,000, while the typical house sold by an agent sells for $245,000. This doesn’t mean that an agent can get $60,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.
Bottom Line
Before you decide to take on the challenges of for sale by owner, let’s get together and discuss the options available.
