For Sale by Owner (FSBO) transactions certainly seem appealing; it can appear that it is easier to sell without help and that you can maximize your profit by not having to pay an agent’s commission. The truth is, in fact, the opposite.
1.) You Net More Money When Using an Agent: A recent study of the 2017 Real Estate Market by the National Association of REALTORS® show that a typical house sold by a homeowner sells for $190,000 while the same house sold by a REALTOR® would fetch $250,000. In the case of a FSBO home where the buyer knows the seller, the sale price drops to $160,300. This difference more than covers the cost of an agent's commission! FSBO homes are more likely to have a lower final sale prices, so it certainly makes more sense to have an agent sell the property on your behalf. In addition, it has been found that FSBO properties are often priced too low for the market, creating a steal for buyers but cheating the seller out of money that could be otherwise earned. A REALTOR® can get more money in your pocket using market data about recent sales and other homes on the market, ensuring that your home is priced appropriately.
2.) Marketing and Online Exposure is Key: It is no secret that the internet is the first place many turn to for most anything; why wouldn’t it be where they turn it for finding a house? Up to 88% of buyers search for their prospective home online. REALTORS® have professional marketing expertise and many tools are their disposal to make a property widely known across many avenues of communication. Dwell360, for example, utilizes staging consultations, professional photography and floorplans, individualized property websites, videos, virtual 3D tours, property brochures, online and social media marketing as well as listing on a Multiple Listing Service (MLS), which broadcasts your listing to dozens of popular websites and search engines. In addition, we highlight the property with an eye-catching purple yard sign! Learn more about Dwell360’s superior marketing techniques.
3.) FSBOing Continues to Become More Difficult for Sellers: The paperwork that is required for selling and buying a home has increased dramatically with the growth of the industry. In addition there are many deadlines to meet in order to keep your home sale on track and closing on time. If you choose to FSBO, you’ll likely be negotiating with a buyer’s agent on the other side of the transaction, relying on your own skill to finalize a contract that you may not be prepared to deal with. Not only could you get less money than with a REALTOR®, but you could be opening yourself up to potential legal issues down the road.
4.) There Are a Lot of People to Deal With: Even if you consider yourself a people person, you might not be ready to deal with people in the context of real estate. A REALTOR® can show your home and talk with agents and prospective buyers about it, while concurrently obtaining feedback from visitors and screening for safety. They can also help you avoid wasting your time by checking to see if a buyer is legitimate and can afford the purchase, respond to inquiries, and show the home when you’re not available. In addition, buyers typically prefer to view a property without the seller present so they feel comfortable exploring the rooms and imagining themselves living there, which cannot be done with a FSBO since the seller would have to be present. There are also buyer’s attorneys, home inspectors, appraisers, and municipal officials that need information and have questions that would be otherwise fielded by the REALTOR®.
Having an experienced professional by your side will help you go through the home selling process with less stress, complications, and potentially more money in your pocket! The choice seems obvious: contact Dwell360 to speak with a REALTOR® today!
Dwell360 is a boutique residential real estate firm based in Newton, Massachusetts, servicing the cities and suburbs of metro Boston. Dwell360 is a leader in in luxury real estate throughout the Boston, Brookline, Newton, Needham, and select other communities of metro Boston. Search for homes in Massachusetts and then give us a call.