Reasons Not to Sell Your Home For Sale By Owner

A lot of people assume that selling their homes themselves, that is, without the services of a real estate agent, can be a good idea. The common notion among these homeowners is that not having to pay sale commissions to their listing agents can save them some money. 

However, selling a home without professional guidance or assistance comes with many hidden pitfalls. Also, less than a third of people who try to sell their home on their own are actually successful. 

Here are 6 Good Reasons:

1. There Are Too 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 wants the best deal possible (and is looking at FSBOs to save the same money you want to save)
  • The buyer’s agent who solely represents the best interest of the buyer
  • The home inspection companies which work for the buyer and will almost always find some problems with the house.
  • The appraiser if there is a question of value
  • Plus, an agent knows all the right people around town. They have their finger on the market and talk to other agents. So they know who is looking for homes and which clients are looking for a home just like yours.

2. Marketing Plan

Selling a home does not happen overnight and it certainly doesn’t happen without a plan. Luckily, for sellers with an agent, they don’t have to worry about the marketing plan. Agents already know which emails to send and to whom, all the best websites to list homes on, and social media accounts with a local following. They also know the right professionals to take photos of your house and create a 3D tour.

Also, anyone doing a FSBO doesn’t have the built-in audience an agent already has on all of their social media channels. Agents have a social media presence where people have come to expect real estate posts and their audience is more likely to be looking to them to buy a home.

3. Time

Life can get very busy. Between your job, kids, marriage, pets, cooking, and cleaning, sometimes there is hardly enough time in the day for yourself! Becoming your own agent on top of that can be overwhelming at best. On the other hand, selling homes is an agent’s job. They spend at least 8 hours a day (usually many more) with houses on their mind.

4. Legal Liabilities

When listing a “For Sale By Owner” property, it is vital to understand that the homeowner is liable for everything and anything listed. This means that if a seller gives wrong information on the house, that seller will be held accountable by law. And while some homeowners provide inaccurate information on purpose, others do it out of sheer ignorance.

If you are uncertain about specific details of your home, it is advisable to work with a real estate agent. This way, you can be sure that all details about your property will be professionally researched and accurately listed. 

This would eliminate the possibility of your clients being disappointed during inspections and any legal problems arising further down the line.

5. Falling Victim to Scams

When selling a property as an FSBO, homeowners either market their property or utilize the services of online listing companies rather than the conventional Multi Listing Service (MLS). 

Since these sellers have complete control over the home listing and are not made to follow the MLS rules and guidelines, it is not unusual to find the information provided on “For Sale By Owner” homes wrong and misleading. This is one of the biggest issues buyers come across regarding FSBOs.

Although there are quite a number of legitimate sellers out there, many people still regard all FSBO listings as scams. This is a problem that hinders the success of most FSBO sales. 

Without an agent, there are huge chances that someone may try to sell a property they don't own. Buyers don't want to go through the stress of having to fix issues like this, so they’d rather just avoid them

6. You 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 for sale by owners is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

According to the National Association of Realtors’, 35% of homeowners who decided who sold their own home last year did so to avoid paying a commission fee. However, this may have been counterintuitive. In fact, homes sold with an agent net 6% more than those sold by owner according to Collateral Analytics. The fact is, real estate agents know how to negotiate price more than the average person.

If you’re searching for homes in Sandy, Salt Lake City, Cottonwood Heights, Millcreek, Draper, South Jordan, West Jordan, Herriman, Daybreak, Riverton, Lehi, Saratoga Springs, or anywhere in northern Utah, Salt Lake Home Pros are the real estate agents to call. If you’re buying or selling a home, don’t hesitate to text or call us at 858-617-9449. 

 

 

 

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