5 Reasons You Should Not For Sale By Owner

5 Reasons You Should Not For Sale By Owner

For Sale by Owner

In today’s market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.

Here are five of those reasons:

1. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interests of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value

2. Exposure to Prospective Purchasers

Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you? 

3. Results Come from the Internet

Where do buyers find the home they actually purchased?

  • 44% on the internet
  • 33% from a Real Estate Agent
  • 9% from a yard sign
  • 1% from newspaper

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money when Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, let’s meet up so we can discuss the difference having me as an agent can make.

Previewing Homes For Clients

Previewing Homes For Clients

Previewing Homes For Clients

Busy busy weekend folks, even with the big storm coming in. What I have here is not an award-winning video by any stretch of the imagination. It is just a quick update. This was me this morning running around to a few houses for some clients of mine to proxy view homes for them that just came on the market. That was before I had to show homes to other clients coming in to town, and after having written an offer on another home before that. Oh, and it was my first daughter’s birthday!

It is absolutely clear to me that we need to be able to operate quickly in this real estate market. I looked at three places for them and we wrote on one this evening! Always happy to go the extra mile for my clients.

Lake Tahoe Home of the Week – Kid’s Edition #1

Lake Tahoe Home of the Week – Kid’s Edition #1

So each weekend I have been going out to get familiar with the inventory here in Tahoe. As of right now I’m just going through the vacant properties as it allows me to bring along the family and then we can go out and get lunch afterwards.

I have quickly learned that the toughest critics happen to be the girls. It is surprising what they do and do not like, and inevitably each week they have a favorite house, and one that they can’t get out of fast enough. For them this last week, the clear winner was a house on Cree Street off the Pioneer Trail area, just before Meyers.

Green gets points.  As do lawns.
Green gets points. As do lawns.

The oldest, immediately upon pulling up in the drive loved the color of the paint, “Ohh Daddy, its green!” Green is her favorite color, and so this house was already off to an early lead compared to the others. While walking up to the door, both of the kids ran onto the lawn to perform somersaults and proclaim how much that they love grass. Super, I’m sure the whole neighborhood heard them as well.

We get inside and the girls went straight for the sliding glass door leading to the backyard. This sliding glass door got some points from them because they could both lock and unlock it, and open it fairly easily. The back deck was pretty nice. The girls enjoy looking into the neighbors windows when elevated like that, so the youngest spent a moment watching Spongebob on someone’s TV through their window. I’m sure some day we’ll be able to teach them manners… some day.

The oldest proclaims that she loves hot tubs as she sprints past it into a dog kennel which according to her is “spooky and cool”. I think to myself that it might be handy to have for when the kids are acting up… just kidding. That would be wrong.

Looking down the backyard.
Looking down the backyard.

Following them down the yard there is a treehouse-type slide and play area set up. Very cool, even for me. There is also a sandbox, some benches, and some bird houses set up, and I instantly recognize that they might not see the rest of the house, and may in fact want to stay here the rest of the day… maybe the night if they can swing it. I am, however, an amazing parent and successfully bribed them with pizza and soda persuaded them to check out the rest of the house and move on from the “coolest backyard EVER”.

The "treehouse-type slide".  Also a nice vantage point to watch TV in the neighbor's houses.
The “treehouse-type slide”. Also a nice vantage point to watch TV in the neighbor’s houses.

In the kitchen both the girls diligently inspected every single cupboard. The lazy susan corner cupboard got the “this is cool” with a thumbs up, and the cat door on the laundry room door got both of them talking about how they wished that they could fit through the tiny door. In the end they decided it wasn’t actually for a cat, but for fairies that might want to help them do laundry. I anxiously await the day I get help from the laundry fairies.

I can see EVERYTHING daddy!
I can see EVERYTHING daddy!

A house with stairs instantly gets points from the girls, but this one got a few extra as it has a “spy spot” so that they could monitor kitchen activities. Once upstairs I have to make mention of how large the master bedroom was. Very large, and tons of windows. The girls were captivated by the other rooms though.

While I was checking out the master bedroom I could hear gasps from both the girls and they both immediately began saying things like “It’s so beautiful!” and “This room is mine, you can have the other one.” One room, was Pink and purple, the other a lavender or periwinkle and teal. They both began explaining to me (simultaneously of course) what they loved about the rooms.

They liked it THIS much.
They liked it THIS much.

The curtains, the carpet, the paint, the closets, the curtain adornments, the peg hangers, and the windows looking out at “their” playground. The ONLY negative I heard was that the teal room didn’t have peg hangers like in the pink room, and that it didn’t have curtain adornments. After much discussion and calculating out the scores, they came to their conclusions. They liked it. They liked it THIS much —->

So there you have it. Their home of the week is located at 1569 Cree Street. You can find the MLS information on it below and many pictures of it. If you’d like to take your critics there to see if it would be a good fit for you let me know and I’d be happy to show it to you.

Click the listing below to see more pictures and get more information on the house!