Homeowners who are trying to sell their homes by themselves, or the so-called — ‘for-sale-by-owners’ (FSBOs) — are driven by several reasons. Although most of them want to save money that they would have otherwise spent on real estate commissions, a few others take the house FSBO route because they feel they don’t need a professional to sell their home.
Whatever the reason for attempting to sell solo might be, figures from a National Association of Realtors survey show that less than 10 percent of all home sales are FSBOs.
If a seller tries FSBO before hiring an agent, the seller loses the “golden time” window. This will eliminate buyers who have already viewed the home and might have made a reasonable offer — but have already moved on. Homes for sale by owners are often listed on a few websites, but there are many that don’t allow house FSBOs to list their property. Thus, FSBOs are unable to give their homes adequate exposure in the market.
Real Estate agents already have a massive list of clients and network. So when sellers hire them, these professionals can give a property comprehensive online exposure as well as exposure in the local real estate segment of the newspaper. The agent even has tools to extend the exposure further, which FSBOs don’t have. Agents have all these networks to help you with.
The contract to buy a home involves much more than just the price offered by the buyer. Even after an offer is accepted, many things still need to be done prior to the closing. Also, real estate contracts have lots of timelines and clauses and involve several common contract contingencies, such as inspections and mortgages.
Many FSBOs don’t have a firm understanding of such contracts and might not know what they are agreeing to or how to negotiate particular parts of the contract. Moreover, FSBOs believe that there is nothing wrong with their home, which is why they refuse to address the issues brought forward by home inspections. As a result, the offer falls through. These processes are very critical and very much important in making a successful sale, and fast!
House FSBOs often price their homes incorrectly due to lack of experience. They set the price too high, which hinders their chances of closing the deal. Handling inquiries from buyers on their listings and coordinating ‘showings’ for their homes are prerequisites for making a sale. However, many homeowners either aren’t able to handle such inquiries on their homes or don’t have the time for them. Experience is a big factor and real estate agents all have these qualities!