Selling a home without a listing agent, more commonly known as “for sale by owner” or FSBO, can be tempting. It cuts out the middle man and gives you more control over the transaction.
But bypassing your Realtor can have serious consequences. Here are some common pitfalls of FSBO:
- You have to do all the work
Taking over the sale of your home is no small feat. You’ll have to do staging, marketing, negotiations, and paperwork all by yourself. You must also make yourself available to buyers 24/7 – that means watching your phone for texts, calls, and emails. Keep in mind too that the whole process could take several weeks or months to finish.If you have a full-time job and a family to look after, FSBO might not be realistic. Go easy on yourself. Hire a Realtor who can take care of the details. This lets you focus on what really matters – finding a new home and starting a new chapter.
- You might attract unqualified buyers
Most buyers associate FSBO listings with real estate bargains, and you might end up attracting those who are not qualified to buy a home. We’re talking about buyers with poor credit scores, folks who are just looking around, and bargain hunters who make lowball offers.Dealing with unqualified buyers can drain your time and energy. A Realtor knows how to attract good offers.
- It gives buyers the impression that you’re in distress
FSBO listings are also associated with distressed sales – often, buyers assume that sellers are in distress and can’t afford to hire a Realtor. This might give them the idea that you’re desperate to sell, and that any lowball offer will do. - The financial benefits are negligible
Sellers often bypass representation because they want to pocket all the profits from the sale. But people forget that agents’ commissions are usually rolled into the sales price, which is shouldered by the buyer. For instance, if the agent wants a 6% commission, they can simply raise the asking price by that amount. This means that you’ll still be able to net most of the profits. - You might not have access to market data
Pricing your home correctly is the key to a successful sale. But in order to do this, you need to have access to market data, as well as have a good understanding of real estate.Sellers often make the mistake of setting a too-high asking price – it’s easy to overestimate the value of your home because of your emotional attachment to it. However, pricing it too low can cause you to miss out on higher profits.
A local Realtor who knows the housing market can give you access to data, as well as price your home accurately.
- Your reach is limited
When selling your home, it’s crucial to reach as many qualified buyers as possible. But if your chances of finding the right buyer are low if you are confined to your professional network. A well-connected Realtor can get the word out on your listing, helping you cast a wider net.
Getting ready to sell? Pagnotta Homes would be happy to assist you. Call them at 908.436.7947 or send an email to Info@PagnottaHomes.com.