Selling a home can be a daunting task, even with the help of a real estate agent. When you choose to sell your home without an agent, also known as for sale by owner (FSBO), you take on all of the responsibilities of selling your home yourself. This can be a lot to handle, especially if you are not familiar with the real estate market or the process of selling a home. Not to mention, selling a home on your own can also end up costing you some profits. In fact, a recent analysis showed that FSBO homes sold for an average 5.5% – 26% less than comparable homes listed on the multiple listing service (MLS) with a real estate agent. Below we discuss some challenges that FSBO homeowners may face.
Common FSBO challenges
- Pricing your home correctly. One of the most important aspects of selling your home is pricing it correctly. If you price your home too high, it will likely sit on the market for a long time. If you price your home too low, you will leave money on the table. Real estate agents have access to data and expertise that can help you price your home accurately.
- Marketing your home. To sell your home quickly, you need to market it effectively. This means reaching a wide pool of potential buyers. Real estate agents have access to a variety of marketing tools and resources, such as multiple listing services (MLSs), social media, and print advertising. With every market being unique, your real estate agent should know which marketing tactics are the most fruitful for your local market.
- Negotiating with buyers. Once you have an offer on your home, you will need to negotiate with the buyer on price, terms, and conditions. This can be a tricky process, especially if you are not an experienced negotiator. Real estate agents can help you negotiate on your behalf and ensure that you get the best possible deal.
- Navigating the legal aspects of selling a home. There is a lot of paperwork and legal requirements involved in selling a home. Real estate agents can help you navigate the legal process and ensure that you are in compliance with all applicable laws and regulations. Of course, it is also recommended to include a real estate attorney as part of your team of professionals.
- Time commitment. Selling a home is a full-time job. A real estate agent should be available to answer questions from potential buyers, schedule showings, and negotiate offers.
- Emotional factors. Selling your home can be an emotional experience. It is important to be able to stay detached and focus on the business aspects of the sale. A real estate agent has the advantage of not having these emotional factors present during negotiations.
- Contingencies. Most home sales are contingent on various factors, such as the buyer’s ability to obtain financing and the results of the home inspection. Real estate agents can help you manage contingencies and keep the sale on track.
Although selling a home may seem straightforward to many, it is a complex process oftentimes with many obstacles to overcome in order to get to closing. Furthermore, each real estate transaction is unique and the knowledge and experience of a real estate agent can be critical to a successful closing. Lastly, FSBO homes tend to sell for less money and typically take much longer to sell. Needless to say, hiring a real estate agent to sell your home can ultimately save you time and money.
Are you thinking about selling your home in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, don’t forget to download the free Florida Home Search app for your mobile device & have the power of the MLS in the palm of your hand.