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Thinking about selling your home FSBO? You could actually be leaving money on the table.
Here’s why:
The National Association of Realtors has reported that FSBO homes sell for over 25% less on average than agented properties. On a $400,000 home, that could mean losing over $100,000 on your sale — way more than you’d pay in realtor commissions.
Here are the TOP 3 Reasons why NOT to sell FSBO!
And one BONUS reason!
Everyone makes mistakes. A seller (or buyer) who doesn’t have the representation of a licensed agent pays for those mistakes. Attorneys can close a real estate transaction, but they don’t carry errors and omissions (E&O) insurance.
So, if homeowner Sandy lists “hardwood floors” as a feature and the buyer discover it’s just a wood veneer, chances are Sandy is going to pay for that mistake. An agent would have either caught the mistake or covered it with E&O insurance. Let’s face it: this is a litigious society, so what homeowner wants to be a target for lawsuits?
Paperwork is daunting
there are a variety of legal forms that are needed, including but not limited to a sales contract, property disclosures, occupancy agreements and lead paint records.
Sure, ready-made contracts can be downloaded easily enough. But does an untrained seller understand what all that means? Would the seller know how to customize that one-size-fits-all contract?
FSBOs lost about 16 percent of the sales price.
FSBOs spend more time on the market – 18% more time than the seller wanted.
Time
When you decide to sell as a FSBO be prepared to sacrifice a lot of time. From staging the property and taking perfect pictures to getting the description and marketing right. You’ll also spend time showing the property, entertaining lookie-loo’s and door-kickers.
Photography
Pictures tell a story. No one needs to see a picture of a toilet unless it is a Toto. My point is it’s very important to declutter and stage each shot to draw the buyer in and not turn them off. Sloppy pictures where you see a reflection in the mirror are just that sloppy.
Local Expertise
Your listing agent’s network and local expertise impact your sales outcome. They should be tapped into your neighborhood’s real-estate activity and have proven relationships with agents that work in the same neck of the woods.
