In most cases, the primary purpose of attempting to sell your home on your own is to save money. Most people can relate to this. Unfortunately, what many home-owners are conveniently over looking are the statistics on how many FSBO’s are actually losing money rather than saving.
Case-in-point: recently a home owner in my neighbourhood decided to sell their own home. I tried for 6 days to get in touch with the owner to inquire about the price. When I finally I caught up with them, I was informed that the home was already ‘conditionally sold’! I then learned they were asking $70,000 less than what the home was worth in the current market in this prime inner city neighbourhood! These home-owners simply were not as informed about the current market trends as they thought they were. No wonder this home sold in less than a week! This seller’s attempts to save money in commissions, instead saved the buyer $70,000!!!
Another recent experience I had with a FSBO turned my clients off without them ever even reaching the front door. When I contacted the owner, not only were they extremely rude, they were over-priced by upwards of $25,000 and had terms that would have turned away any legitimate, educated buyer. My buyer, who was initially quite interested in this home based on curb appeal & location, very quickly dismissed it based upon the FSBO’s attitude, price and unrealistic terms.
Most of my buyers refuse to even look at FSBO homes as they find the owners emotionally attached and therefor very difficult to work with in a business transaction. I have seen FSBO’s provide inaccurate information and become offended when serious buyers are looking for verification. Educated buyers know that professional representation provides them with security, recourse and peace of mind. 100% of my buyers purchase homes that are listed with a licensed Realtor despite knowing full well that they have the option to shop the private seller market with my assistance.
As more buyers become unwilling to navigate the private seller market, we will see many more FSBO’s simply not selling. Today’s real estate clients are more educated than they have ever been and they appreciate the security & knowledge working with a licenced professional provides them.
The result of these homes not selling on "first attempt" is that eventually they end up listed with a Realtor, and all too often for a lower asking price than they would have been in a position to ask on fresh listing. The stress is further intensified if the seller NEEDS to sell within a now shortened time frame and is already frustrated with the process.
When considering selling your home privately, consider these questions:
Do you have a full-time job? Selling Real Estate is more than a full-time job. A good Realtor will invest a considerable amount of time, energy and money into selling your home. Being unavailable for any length of time, means potentially missing out on the right buyer. Let the professionals do the work.
What do you really know about marketing? Today’s homes are easily exposed to not only the local but the global market. The Multiple Listing Service is more efficient than any private marketing scheme and provides Realtor’s nationwide with access to extremely detailed information about your home.
Are you concerned about security? Opening your door to just anybody can be pose a serious security risk. Realtors know their buyers and you have little, if any, security risk in allowing a licenced Realtor to show or sell your home.
Are your potential buyers qualified? Wasting time with unqualified buyers is a Realtor’s nightmare. Prudent Realtors work only with buyers who are financially able to buy homes. They don’t waste their own or seller’s time showing listings that are "out of reach". As a private seller, you can only rely on the information the buyer is willing to provide.
Is saving commissions really worth the risk and hassle? My answer is simply no. Hire a Realtor - we are called professionals for a reason.