FSBOs (For Sale By Owner) are getting a lot of publicity lately and their numbers are increasing. The question remains: selling what may be the most expensive asset in your portfolio, should not be taken lightly.
First, let me state that even with my experience in lending and real estate, I would not consider selling my home without a realtor. I certainly could do it myself, but I am confident that if I hire the right agent, that is the best decision for me.
Now, I am not against FSBOs or anyone trying this method, but it is imperative that the seller knows exactly what they are getting into. In today’s litigious world, you may put yourself into a bad situation if you miss a law or county specific code; misrepresent any defects; or potentially discriminate.
Some of the reasons given for not using an agent include the realtor fees, not meshing with the agent, and undervaluing /underestimating the job at hand. However, if you are diligent and informed, you may be successful in selling the home yourself.
Richard bought a home in Hereford, Maryland in 2006, subdivided the lot, and sold that part. He decided to list FSBO primarily because he “did not enough equity to pay the 6% the realtors wanted”. He hired an agent about a year and a half ago but after no activity, he decided to try on his own.
“I sold the lot FSBO but if the buyers were not patient and understanding, I would have lost that deal”, states Richard. “ I now appreciate the value of a realtor and like the buffer that they set so I am now offering 3% to any realtor that sells my home while still listing as FSBO.”
Mark, In York, Pennsylvania tried to sell FSBO and ended up having to bring in an attorney to untangle the mess created by both the buyer and seller. Language missing from a contract purchased online put them both at risk but they were able to rectify things, albeit, at a cost.
From the FSBO sellers that I spoke with, the number one complaint is ironic: The majority of their calls are from Realtors trying to pitch them on listing the home. The onslaught forces many sellers to not answer the phone numbers given and screen voice mails, potentially missing out on a hot buyer.
There are many examples of successful FSBO transactions. Just perform your due diligence before proceeding. Realtors may negotiate their fee and most will invest money in marketing your home. Moreover, successful agents already have a stable of buyers looking, which may equate to a quick sale time.
If you are selling as FSBO or sold as FSBO, I would like to hear your story, both good and bad. Your experiences could help another person avoid problems. For now, rates are near record lows and buyers are out there. Whether you choose an agent or decide to try it yourself, you need to have all of the facts. If you decide to sell the home yourself, contact us as we have a turnkey marketing program at no cost to help you sell the home and a list of experienced agents to interview if you decide on that route.
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