Many homeowners are under the impression that they can save money on commissions by replacing their Realtor and attempting to sell their own home as a “For Sale by Owner” (FSBO) seller. In reality, this assumption usually leads to more hassle and less savings in the end. In fact, the average FSBO home sells for over $40,000 less than those represented by an agent.
There are a many reasons why FSBO sales don’t live up to the pipedream most sellers have going into it. Here are just a few of the problems FSBO sellers face when trying to fly solo.
#1: Negotiation is not as easy as they think.
Real estate contracts can be extremely confusing. Without the proper training to understand them, sellers are vulnerable to mistakes that could result in expensive legal issues. Because the negotiation process involves multiple parties (each with their own agendas), an FSBO seller is typically unprepared to negotiate with the buyers, the buyer’s agent, home inspectors, and appraisers in the same way an experienced real estate professional can. Avoid this dilemma, and let iList help you with negotiations! iList agents review every offer and counter offer and will include notes for the seller.
#2: Important issues get overlooked during closing.
There is much more to closing a deal than simply agreeing on a selling price, shaking hands, and handing over the keys. Just like the negotiation process, the closing process is extremely complex and requires experience to ensure nothing gets missed. There is an important checklist of items that need to be addressed prior to closing, as well as a specific timeline to adhere to. Most FSBO sellers don’t understand how to handle crucial steps like ordering surveys, securing written mortgage commitments, scheduling inspections, and reviewing title work. Fortunately, iList agents handle all of the contracts and closing documents for you in a way that makes it easy for sellers and buyers to understand.
#3: The home is not properly priced.
Many FSBO sellers price their homes on the high end, trying to get the most out of the sale, but this often dissuades buyers, leaving the home sitting on the market to become stale. It is a balancing act to find the right price, and it involves more than just looking at comps. Many factors that should be taken into consideration like upgrades, view, and lot layout get overlooked by the sellers when deciding on a list price. Because FSBO sellers are usually frugal when it comes to the real estate transaction, they typically do not enlist the services of an appraiser who can make a significant impact on helping them find a fair market value for their home. Using iList’s sophisticated iValuate tool, sellers can quickly determine the right listing price to make sure they are getting the most for their home.
#4: The most effective marketing outlets are not utilized.
When buyers are searching for a home, 89% of them search online. FSBO sellers who think they can effectively market their home with a yard sign and newspaper ad quickly realize how difficult it is to draw in potential buyers without a carefully executed plan that includes substantial online presence. Today, just 10% of homes purchased were discovered from yard signs and newspaper ads, while 44% were found during internet searches. If the home is not listed on MLS and all of the major real estate sites, it doesn’t have the proper exposure it needs to sell in today’s market. iList provides sellers with all of the modern tools, including a listing on the MLS, to market a home for a fraction of the price you would pay a real estate agent to do.
Don’t fall short with FSBO! Sign up with iList today to save thousands on commission, get access to cutting edge real estate tools, and still enjoy the traditional services of a real estate agent or broker.