For Sale By Owner
For most people, the biggest financial transactions they will ever experience will be the purchase and sale of their home. The process of selling a home can be time consuming, and it is very complex. Consider, how often does a person sell a home? There are many legal and financial ramifications involved. And, how will the home be marketed?
Home sellers must also keep in mind that buyers feel the need to be counseled and protected. It is going to be one of their largest financial transactions also. They tend to shy away from dealing directly with a seller. It can be a costly and frustrating experience to do a FSBO (for-sale-by-owner).
The obvious appeal for homeowners to sell it themselves is, of course, avoiding having to pay a commission that is normally earned by a Realtor®. After all, how difficult could it be to sell a home? Isn't it just like selling anything else? So there is that temptation to try it, and possibly save a lot of money. What more does it take than sticking a sign in the ground? Well, it really isn´t quite that simple.
In fact, it is reported in national statistics that only 8 percent of all 'For Sale By Owner' efforts are successful. And unfortunately, for their efforts, they net 1% LESS than if they had paid an agent to handle the whole transaction. Yes, only one out of every twelve actually results in a completed sale, and the sellers net less money than if they had sold using an agent. Why deal with the risks and frustrations?
For-sale-by-owners should be prepared to stay close to their home for weeks and maybe months to show the home to prospective buyers. The home sellers will need to be accessible during regular working hours -- that is when most showings occur. And, they need to keep in mind that they will probably be showing the home to people not qualified to buy it, or who are looking for a bargain.
What are the pitfalls in selling your home yourself?