5 Reasons Why FSBO Won’t Work

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5 Reasons Why FSBO Won’t Work

With the rise in home prices and lack of inventory in the market, many homeowners may consider selling their home by route of FSBO (For Sale by Owner). Unfortunately, there are quite a few reasons that this approach to the market may not work for many sellers.

Here are the top five reasons FSBO might not work:

1. Excess People to Negotiate With

If a homeowner decides to take the FSBO route, they should be prepared to negotiate with:

  • Buyers who want the best deal they can get
  • Buyer’s agents, whose focus is on the needs of the buyer
  • Buyer’s attorney
  • Inspection agents of the buyer’s choice, who will be very tedious in finding issues
  • An appraiser in the case of questioned value

5 Reasons Why FSBO Won’t Work2. Exposure of Your Property to Prospective Buyers

Studies show that about 88% of home buyers browse online when they’re looking for potential homes. In comparison, only 21% use newspaper ads to do their home search. Real estate professionals tend to have effective internet strategies for promoting online, reaching many more potential buyers; do you have that kind of plan?

3. Results come from Using the Internet

In which medium do buyers tend to find their future home?

It has been a traditional way of marketing to put up a ‘For Sale’ sign and have the property printed in newspapers, but today’s market is much different. Today, advanced technology pulls better rewards in terms of getting more prospect buyers- having an internet strategy is very important.

4. It’s increasingly difficult to complete a successful FSBO

Selling and buying homes requires much more paperwork these days as a result of industry disclosures and regulations becoming mandatory. These changes have caused FSBO homes to decrease from 19% to only 8% over the last 20 years.

The NAR began collecting data in 1981, and this 8% is the lowest recorded number since they began collecting information.

5. There’s More Money using Real Estate Professionals

There is a clash of views when homeowners attempt FSBO routes; the seller assumes they will be saving real estate commission, while buyers assume they will be saving on the real estate agent’s commission. Both parties cannot save on commission.

A survey shows that a t5 Reasons Why FSBO Won’t Workypical home being sold through FSBO sells at a price point of $210,000 while a real estate professional will sell it for $249,000. This doesn’t  necessarily mean you can gain an extra $39,000 for your home, as studies show that the usual FSBO homes are those with lower price points. However, selling on your own does not make the most sense.

Bottom Line

There are a lot of challenges when it comes to home selling, especially if you’re attempting FSBO. The best strategy you can choose as a homeowner is to work with a real estate professional to avoid the hassles and get the results you want! Need more convincing? Check out the article 13 Reasons You Should Not Sell Without Help that outlines reason why.

Sell your home with Showcase Realty and see the results! We have a wide variety of Uptown Charlotte Homes For Sale– feel free to browse our properties to find your dream home! Call us now at 704.997.3794 or send us a message here to speak with one of our real estate consultants today.

Your Home is guaranteed to sell within 120 days or I will pay you $2,500. *some conditions apply*

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