When you are trying to save money, sticking a “For Sale By Owner” sign in the yard might seem like a simple solution. Real estate agents charge thousands of dollars in commissions, so it is easy to see why some homeowners are attempting a DIY transaction.
Before you rush into this decision, you need to understand the potential issues that often arise with FSBO real estate. In fact, selling a home without the representation of a real estate agent might be the biggest mistake that you could make. Here are the main reasons why FSBO transactions fail:
- Lack of Preparation: If you aren’t familiar with the real estate market, then it’s likely that you will overlook a few important things that need to be addressed before the home goes on the market. Good preparation plays an integral role in ensuring that your home catches the attention of the right buyers. Your real estate agent will help with the pre-listing tasks, such as small repairs and renovations, decluttering, staging, curb appeal, and more.
- Screening Buyers: Just because someone indicates interest in your home, doesn’t mean that you should jump at the opportunity to work with them. Many times, FSBOs waste hours and hours because of unqualified buyers who want to see the home. Instead, you can streamline the process when your real estate agent makes sure that the buyers are pre-qualified or pre-approved.
- Managing Inquiries: It is assumed that a real estate agent lists the property and then sits around until the home sells. The truth is that your agent will be working hard answering questions and guiding the conversation when people inquire about the listing. If you don’t have the time or expertise to field these calls, then it is best to skip the FSBO and work with an Atlanta real estate agent instead.
- Poor Negotiation: Real-world experience with real estate negotiation is essential to ensure the best deal for your family. With a FSBO, it is common for the seller to have limited knowledge of real estate contracts. As a result, they often get the short end of the stick in the final negotiations.
- Home Inspections: Another thing that you need hands-on experience with is working through the inspection findings. The home inspection phase can be stressful and costly if you don’t have a good real estate agent to assist with the work. It is likely that your inspector will find something wrong, which is why you need a pro to guide the conversation and negotiations.
- Paying the Buyers Agent: Even if you choose to forgo the services of a sellers real estate agent, you still need to be willing to pay the commission for the buyer’s agent. The chances are slim that you will connect with a buyer who is working without a real estate agent. So, refusing to pay any real estate commissions means that you will eliminate most of the potential buyers.
For Sale By Owner isn’t the only way to save money when selling your home. Instead of taking a risk with FSBO, we invite you to learn more about your options by speaking with the Walker+Hailey Team at Realty ONE Group Music City at (888) 950-LIST or 950List.com.