Thinking about selling your house by yourself? For Sale By Owner (FSBO) properties are actually very common. Many house sellers are doing this because they want to avoid paying realtor’s commissions so it means more money in their pockets.
However, it’s not as easy as it sounds. Here are some disadvantages of FSBO and why you may want to avoid this route.
Selling a house is a complicated business. Most sellers usually have 2 goals: sell their house as quickly as possible and to get the best price. Cutting off the middle man is understandable. One of the most common reasons why FSBO’s fail is incorrect pricing which results in the property sitting on the market longer and costing you more money. Mistakes like this could be avoided by hiring a real estate agent or expert.
Realtors are also responsible for marketing your house. They have access to not only potential buyers but an array of marketing strategies to sell your house quickly. An established realtor knows how to market your property to the right buyers, price it competitively and negotiate based on the hard facts about your property.
Without this knowledge, a for sale by owner property can lose the potential for multiple offers.
Many people think that marketing a property is easy. This is not true because without an established network, marketing efforts can fail. A good marketing plan for your property involves more than just listing your property on real estate websites. It also needs targeted strategy that can bring potential buyers to your house. Putting a for sale sign in your yard is a form of marketing and it makes your house visible. But to whom? If the right people do not know your house is for sale, it could stay on the market longer and bring down its value.
A good real estate agent will put up multiple listings of your house and employ marketing strategies like open houses and private showings. These strategies can increase your chances of selling your property more quickly than the FSBO route.
If you have a job that takes you out of your house for a significant amount of time this could impact potential viewing schedules? If a potential buyer wants to see the house, how will you show it to them if you’re far away at work?
Selling your house by yourself does not always work because it is a full-time job. Aside from showings, the property will need to be inspected, repaired, photographed, staged and listed. Do you really have time to do all of this?
One of the biggest problems of FSBO is qualifying the buyer. If you’re lucky enough to have a buyer interested in your property, how do you know that they are qualified to buy? A mortgage letter is not enough because there is a big difference between being pre-approved for a mortgage and being pre-qualified.
There is a lot of legal work involved in selling a house. Depending on where you are, states have their own rules and regulations for selling a property. For FSBO, it is your responsibility to prepare all of the necessary paper work for the real estate transaction. This is very important because you need to understand the rules and regulations to ensure that transfer of the property can go smoothly.
For example, one of the biggest problems is ensuring following proper state disclosure laws. Many owners do not understand that they cannot sell their property as is or need to be honest with its problems. Laws differ from state to state and ignorance can put you in the middle of an ugly and expensive lawsuit.
FSBO can be a dangerous game to play. Mistakes in pricing, ignorance of real estate laws, inadequate marketing can put your property in jeopardy. Learn the intricacies of for sale by owner before embarking on this path. The more you know, the better armed you will be.
If you think that FSBO is daunting, you may have other options available to you. Call Gold Path Real Estate at 612-758-0071 to discuss your real estate options. Looking for more information on how to sell your house quickly and easily? Get your FREE home selling report today by clicking below.