When it comes to selling your home, there’s simply TOO MANY factors that come into play for someone to do it all on their own. Statistics show about a 20% average increase in sale price when people sell with an agent. Not only do homes sell for more but they get off the market FASTER!! If you’re thinking about selling your home, read this article before deciding to sell it by yourself.
Lack of Resources
As a homeowner, you have your own career, life, and responsibilities to take care of. The last thing you want is to add the full time job of being your own real estate agent to your list. In order to sell a house and find potential buyers, you need lots of time, marketing resources, and more that you may not have access to. Do you have that kind of time to dedicate to finding buyers and solving problems with inspections, title searches, etc.?
Another common misconception is about “saving money”. Homeowners tend to think they will save money by not paying a commission to an agent. In reality, if you don’t know your way around a real estate transaction, you could spend double or triple what you spend with an agent. This can come in the form of a marketing budget, home repairs, staging costs, and more! Instead of spending all of your money on this, hire an agent that can market your property for you, stage it for you, and help you determine which repairs ACTUALLY need to be made for the sale to go through!
Speaking of lack of resources, even if you do have thousands of dollars to market your home, the one resource you lack is experience. Selling a home is hard enough as it is, without experience in the industry and understanding the market and your consumers, it lessens your chances by a big margin. Last year, 18% of FSBO properties didn’t sell at all. This can cause major issues if you have a strict timeline in which your home needs to be sold.
FSBO is scam-likely
In an FSBO situation, both buyers and sellers can get scammed. For example, Mark (a previous client) paid a homeowner of an FSBO $5,000 for a earnest deposit, the homeowner changed his mind, and with no legal documents signed, Mark lost his money. This can happen vice versa as well. There’s been cases where a foreign buyer will deposit more than the required amount with a bad check, then request a refund. As a result, the seller loses money due to not having the funds that were “deposited”.
Scams can also come in the form of fraudulent paperwork, fake attorneys, etc. This problem can be completely eliminated with the use of a real estate agent. An agent will know the difference between real and fake paperwork, deposits, appraisals, etc. They will also guide you on how to avoid getting scammed by fraudulent buyers.
It is also very common for FSBO deals to run into legal issues during or after the transactions. One of the most important aspect of an offer is it’s contingencies. Contingencies are like conditions that allow buyers/sellers to terminate a contract if these conditions are not met. Such as appraisals, financing, and inspection requirements. Without these being done correctly, you, as a seller and buyer, lack the protection you need in case something occurs.
Something to take into consideration is disclosures. As a seller, you need to know what you do and do not need to disclose to the buying party in order for your transaction to be valid and not add any extra responsibilities to your side. For example, sellers MUST disclose all and any material defects in the home. If the seller does not disclose this information and the buyer is unaware, the seller could be solely responsible for all the repairs.
On top of the legal liabilities and risk, you have to handle all the legal paperwork. This means you need to know how to write a sale contract, property disclosures, occupancy agreements, and more. This alone is enough to drive some owners straight to the nearest brokerage. All in all, seeking a consultation will at least help point you in the right direction.
Your best chance at having a completely smooth real estate transaction is to find the best realtor in your area. If you’re in or near Orlando,FL, you’re in great hands with the Brown Home Group at Keller Williams Advantage II Realty. We would love to hand you the keys to your new home! If you have any questions or concerns about your FSBO listing feel free to reach out to us or visit our website!