5 Risks When Going FSBO (For Sale By Owner) in the Triad.

We are seeing many sellers trying to sell on their own as they read about the low inventory in newspapers or online. Their thought seems to be "if it's a seller's market I don't need an agent and can save the commission money."We have compiled five reasons that this thought process might not be on point for most sellers.

1. Exposure

With new studies showing that 95% of buyers search online for a home internet marketing and advertising is more important than ever when selling your home. Compare this with only 17% looking at print newspaper ads. At Pro Realty Group we have refined a marketing process utilizing the internet's timeline and exposure. Do you?

Reynolda Rd. FSBO for months Sold by Pro Realty Group

2. Results

Based on NAR (National Association of REALTORS) It's important to note where buyers actually found the home they purchased.

• 49% on the internet
• 31% from a Real Estate Agent
• 7% from a yard sign
• 1% from newspapers

While the number one method is the internet the second best by far is a Real Estate Agent. At Pro Realty Group we spend time networking with other agents to help our clients matchup. If you don't have a strong sphere of people actively networking with buyers, you may want to hire out this job.

3. There Are Too Many People to Negotiate With

Here is a list of some of the experts in their field 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 interest of the buyer
• The buyer’s attorney
• The home inspection companies, which work for the buyer and will always find some problems with the house
• The appraiser if there is a question of value
• Contractors that the buyer hires to quote repairs

Shadi Green Dr. FSBO for Months Sold by Pro Realty Group!

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. Did you know that the standard offer to purchase for is 14 pages and the mandentory disclosures can be 7? That is of course ignoring any addendum that may apply. 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

The most common reason that we hear in the Triad that sellers have decided to FSBO is commission money. Sellers think that by not paying an agent they can save in the long run. Unfortunately many home owners find out too late the risks involved in going alone.

A study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases, may be costing themselves more, by not listing with an agent. One of the main reasons for the price difference at the time of sale is:

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

If more buyers see a home, the greater the chances are that there could be a bidding war for the property in a seller's market. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.

Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?

Selwyn Dr. FSBO Sold by Pro Realty Group for over $10k more than listed as FSBO!

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer. You can give Pro Realty Group a call about your Triad home at 336-265-7253, we'd love to meet you!