The Pitfalls of FSBO
There are homeowners who may think it is worthwhile to sell a home themselves and pocket that agent commission. However, selling a home FSBO may be more of a chore than initially anticipated. First time home sellers and those who have little extra time may want to work with a reputable local agent.
Homeowners will be busy with getting their home ready, and may not be aware of the extra burden that comes with marketing and showing a property. Learn more about why some reconsider selling a home FSBO and end up partnering with an agent.
Ready for a Second Job?
Simply listing a home for sale is only the start of what needs to be done. Agents take into account multiple factors when helping a seller list their home, such as recent comps, the condition of a home and the state of the local market. They may tap into their network and resources to help drive visitor traffic and will be able to consult and give feedback from open houses and showings. They can objectively advise a homeowner what they may want to do to make a home more appealing or to help them sell faster.
An agent relies upon their experience and current best practices to position a home to sell. A homeowner does not often know which resources to use to initially list and market their home. They may not be aware of whom to contact for professional photography and may not want to deal with communications from visitors to their listing. There is a significant time investment involved in getting a home ready to go on the market.
How Much Is Your Home Worth?
A homeowner can easily price their home outside of what is expected by potential buyers. Price too low and a home may sell quickly, but a seller may not get back the equity they put into a property. Price too high and buyers looking at similar other properties in that price range may not see how the price was determined. This may lead to a home lingering on the market, prolonging the home selling process. There may be tactics that an agent would suggest in a buyer's market that would not be suitable in a more competitive market. Partner with an agent for a better idea of the fair market value of a home and what to do to attract buyers.
Ready to Show a Home?
It will be important to set aside sufficient time to speak with parties, schedule showings and be able to look at a home with an outsider's eyes. As a homeowner, it can be hard to understand when certain areas may need to be updated to appeal to the average buyer. Some may find it difficult to listen to feedback from visitors and use it to better market their home. Be honest. In this initial phase of marketing and showing a home, it's important to get it right the first time. Is it worth taking a chance choosing FSBO and not selling a home for its full value?
Familiar with the Closing Process?
It feels great to get a potential Tuscany home buyer who is ready to make an offer. A homeowner selling their home FSBO will need to know about the paperwork and parties involved in a closing. It may be necessary to negotiate details and work out contingencies on contracts. The average homeowner may not be well-versed in what needs to happen and may place themselves at a disadvantage at this stage. It is also hard to remain objective and not get emotional, should difficulties come up or if a buyer attempts to lower the final price if repairs need to be made. Many choose to work with an agent to act as a mediator and help move the closing process along.