2022 Boise Idaho Real Estate Blog

4 Reasons Why You Shoudn't Try For Sale By Owner (FSBO)

Main Treasure Valley Life

Around the country, home prices are on the rise, which is great news for homeowners looking to sell. In order to try to net as much money as possible or in an attempt to streamline the process, many prospective sellers may be tempted to sell their home themselves as a For Sale By Owner (FSBO). However, this is hard to pull off in this day and age. Here are 4 reasons why you should not choose the FSBO route and hire a real estate agent.

Real estate agents have an online strategy

Multiple studies have shown that over 90% of buyers search online when looking for a home. Real estate agents have the MLS listing program to host the listing, a website to post it, and a marketing strategy that will most effectively spread the word and get users to view your property. If you are selling by yourself, you won’t have these resources and will have a harder time selling.

There are too many parties to negotiate with

If you decide to try FSBO, here is a list of some of the people you will have to negotiate with by yourself.

  • The buyer, who wants to get the best deal possible on the house.
  • The buyer’s agent, whose sole goal is to serve the buyer’s interests.
  • The buyer’s attorney (in certain parts of the country).
  • The home inspectors, who work for the buyer and will very likely find something wrong with the house.
  • The appraiser.

A real estate agent is trained to negotiate with these buyer-interested parties. Choosing a realtor means that you don’t have to deal directly with all of them. Making it much easier on you.

It has become more difficult in general

As industry disclosures and regulations have increased and become mandatory nationwide, the number of FSBOs has dropped to just 8% of all homes for sale over the last 20 years. With more hoops to jump through, doing it yourself just isn't worth the personal time and effort on top of everything else it takes to sell your home.

Most importantly, you will net more money with an agent

Zillow reported that 46% of people that chose FSBO reported that saving money was one of their top 3 reasons. In fact, the opposite is true. Homes listed FSBO are on the market longer and sell for less money than with an agent.  The latest data from the National Association of Realtors (NAR) shows the typical FSBO home sold for $260,000 compared to $318,000 when sold by an agent. That’s a $58,000 difference! The same Zillow report revealed, “While 36% of sellers that (at first) attempted to sell their homes on their own, only 11 percent of sellers—in other words, less than a third…actually sold without an agent.” In the case of the more than two-thirds that didn’t sell when FSBO, they turned to an agent, and the homes sold. When it comes to FSBO sellers, 57% knew the buyer of the home, which shows how small the pool of buyers is for FSBO selling.

The bottom line

Selling your home by yourself today is difficult and will net you less money. Using a real estate agent will make the entire process easier for you, and your home will sell faster and for more money.

If you are ready to sell your home, contact us here. Our team of local experts is ready to help you sell your home faster, for more money, and we will keep in contact throughout the entire process.

Up next: Treasure Valley Cities take the Top Spots in another “Best Places to Live” List

Posted by AndrewS at 2/4/2020 10:42:00 PM

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