Why FSBO may not be a great idea

By Justin Hunter

Who doesn’t want to save money? Every one wants to save as much as possible without sacrificing much. From having a garage sale to buying a used car, we want to get the last buck from junk we don’t use to use towards an automobile that someone else is done with; it’s the American cycle.

This is most true when it comes to paying for services. We would rather get dirty and spend almost an hour changing the oil in our used car instead of paying $20 for a professional to do it in a third of the time.

The article, “For Sale By Owner - Not a Good Option?” written by Paul Hansen and published on ezinearticles.com provides some pertinent reasons as why it may not be beneficial to sell a home yourself without the help of a professional.

“Let's face it, the reason most people use the ‘For Sale By Owner’ or FSBO method is to save on the real estate commission. What those people don't understand is that the process of marketing and selling a home or condo is just that, a process. From start to finish the sale of your home can take up to six months. In the U.S.A. the National Association of Realtors (NAR) states that FSBO's sell for as much as 20% less than homes sold by Realtors. That is a far cry from the six percent real estate commission.”

A real estate agent is most beneficial for a seller because he or she has one primary goal; to sell your home. The agent will not allow personal emotions get in the way of a sale like an owner often will.

In fact, most buyers feel uncomfortable when the owner is home during a walkthrough.
“Buyers tend to feel like they can't ask the questions they would like and can't voice their true opinions, so you can imagine what they feel like when they walk into a FSBO. When an owner shows their own home, they tend to make the entire experience too personal and geared toward their experiences there, and that turns off potential buyers which make it harder to sell the FSBO.”

FSBOs often do not expect the amount of stress and time that accompanies this decision. Strangers will trudge through the property and will want to do so all times of the day that will make juggling a normal work schedule very difficult. A FSBO will probably call a local agent anyway to help them prescreen potential buyers and to show the property when they are not home.

“If a FSBO does get lucky enough to finally get to contract, then comes the hard part, negotiating. Negotiating price and terms of the contract can be tricky and FSBO's tend to attract buyers looking to make low ball offers, or even worse commit fraud. They think if there is not an agent there looking out for the seller’s best interest, that they can take advantage of them. Realtors are trained to spot fraud and help to keep potential buyers from bringing low ball offers.”

Without an agent by their side, FSBOs will generally take an offer that is much too low out of fear that this will be the best offer and because they are tired of the process.
Hansen lists 10 other important reasons why you should reconsider selling your home without an agent.
“10. You open yourself to unneeded stress and aggravation.
9. FSBO's can be a security risk for the seller.
8. Unqualified strangers walking through your home.
7 Takes hours out of your day and some appointments never even show up.
6. You could end up negotiating with an experienced buyer's agent.
5. You may be unaware you are participating in fraud.
4. Advertising can be expensive and unreliable.
3. Most of the calls you will get will be from Realtors anyway.
2. You will probably overprice you home.
And the number one reason not to go FSBO…….who wants to ruin their weekend having an open house?”

Selling a home with the help of a licensed agent will save you not only time but lots of money as well. So if you try to pinch every penny, go ahead and change your oil. But don’t risk thousands of dollars and hours of anguish by being hard-headed; contact an agent to sell your home.

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