In today’s market, with homes staying on the market for less time and prices creeping upward, some homeowners might consider trying to sell their home on their own. This week we begin our new series on FSBOs or For Sale By Owner, because although it’s tempting, the reasons are many on why selling your own home is not a good idea.
1. Saving the Commission
The principle objection raised with the most frequency is that you can save the commission by selling your home yourself. Experience proves that this usually is not the case. Buyers today are knowledgeable and in essence believe that homeowners overprice their homes.
What the owner really expects and wants to get for his home is inflated by the amount of the commission, so should his home not sell, the selling price will include enough to pay the broker’s commission and still net him what he wants out of it. As a result, buyers dealing with homeowners will negotiate a reduction in price at least equal to what the commission would be. If you, the owner, has to sell at the same price you would net from a sale by the broker, you are the loser because of time, effort, and costs.
2. Underpricing Danger
You may not be familiar with often rapidly changing market conditions and the characteristics of the supply and demand for particular types of homes in particular locations, as is The Snyder Group Network. Therefore, you may underprice your home and by the time all costs and expenses are paid, considerably less is netted than if the sale were handled by a professional REALTOR®.
3. Qualifying Inexperience
Unless you are a former real estate agent with applicable experience, you probably don’t have the training in qualifying buyers from all aspects, including financial ability and qualification of the purchaser to buy your home. So, prospects are either lost through poor qualifying, or as in many cases, contracts are signed with buyers who cannot secure the necessary financing. The contract is then lost as well as valuable time and money.
Homeowner ads bring a great many lookers who aren’t qualified to buy, wasting your time and perhaps losing a real prospect for you. The agents on our team bring people to inspect homes who are qualified financially to buy and who are genuinely interested in your home.
5. Difficulty in Purchaser Negotiations
Since you may be inexperienced in real estate transactions, you will frequently encounter difficulties in negotiations on possible concessions, price and other matters, which might lose a qualified buyer. Our team is the “impersonal, professional go-between” and is in a far better position to handle negotiations that will lead to a sale.
6. Hidden Buyer Objections
Buyers are often reluctant to bring out and discuss objections with you as an owner because of the personal element involved. They don’t want to put you on the defense about your home. Hidden objections don’t allow you to represent yourself properly, but real estate agents, however, are in an impersonal position and the buyer expects to be able to take objections up with us that they may not feel comfortable discussing with you.
Still not convinced? Stay tuned for next week when we reveal you six more reasons why FSBO-ing may not be the best decision for you and your family.