So you’ve finally decided to sell your house and you are confident that you can do it without the help of a realtor. You’ve researched the process and read all written materials about selling your property. However, there are several reasons why FSBO or For Sale By Owner is not a good idea, especially if it’s your first or second time selling a house.
So before you stick a For Sale By Owner sign on your lawn, read here the reasons why FSBO is not advisable.
- Selling a home means inviting strangers into it. You do not have the necessary experience and knowledge to filter serious, qualified buyers and provide them access to your home. Inviting just anybody into your house puts you and your family at risk. It is also a big waste of time.
- Choosing the right price that is realistic for your market is challenging. You have to understand how the market works and you need to know how certain factors can affect the price or value of your home. It takes years of knowledge to arrive at a fair price. The wrong price, on the other hand, keeps the right buyers away.
- Proper marketing. A sign in the yard isn’t much of a marketing plan. You need to have a solid and effective marketing plan on how you will sell the house. First, you need connections and people who can spread the word to the correct audience. Your ad wouldn’t be much of use if the people who gets to see it don’t have the financial capability to buy the house. Effective marketing takes financial resources, experience, connections, and marketing savvy. Having a realtor to guide you, it is easy to figure out who your target market is and reach out to them using your strategy.
- Selling a home means being responsible for numerous documents, some with considerable liability attached. Disclosures, contracts, and other legal documents will be hard to understand unless you’re a lawyer. Real estate also uses words and terminologies that should be familiar to the seller so you can effectively converse and negotiate with the buyer.
- The selling process is a full-time job. Do you have the time and energy to devote to it, without missing work? You have to arrange visits all the time and it is very time-consuming and energy draining if you do everything alone. Having a realtor takes off these worries and responsibilities off your shoulder.
Negotiating the sales price requires finesse – an understanding of buyer psyche, the ability to handle objections, controlling your emotions, and a great deal of patience. If you don’t have the necessary experience and knowledge, you will end up busting the deal or your property will sit in the market for a very long time.