Why You Shouldnt For Sale By Owner

Why You Shouldnt For Sale By Owner

Rising home prices coupled with the current inventory in today’s market may cause some homeowners to consider selling their homes on their own (known in the industry as a For Sale By Owner). However, a FSBO might be hard to execute well for the vast majority of sellers.

Here are the top 5 reasons not to FSBO:

1. Online Strategy for Prospective Purchasers

Studies have shown that 93% of buyers search online for a home. That’s a pretty staggering number! Most real estate agents have an Internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

According to NAR, here’s where buyers found the homes they actually purchased:

  • 55% on the Internet

  • 28% from a Real Estate Agent

  • 10% Other

  • 6% from a Yard Sign

  • 1% from Newspapers

The days of selling your house by putting up a sign in your yard or placing an ad in the paper are long gone. Having a strong Internet strategy is crucial.

3. There Are Too Many People to Negotiate With

Here’s a list of some of the people with whom you must be prepared to negotiate if you decide to FSBO:

  • The buyer, who wants the best deal possible

  • The buyer’s agent, who solely represents the best interest of the buyer

  • The buyer’s attorney (in some parts of the country)

  • The home inspection companies, which work for the buyer and will almost always find some problems with the house

  • The appraiser, if there is a question of value

4. FSBOing Has Become Increasingly Difficult

The paperwork involved in buying or selling a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

5. You Net More Money When Using an Agent

Many homeowners believe they’ll save the real estate commission by selling on their own, but the seller and buyer can’t both save the commission.

A report by Zillow revealed that FSBOs are inclined to do so because they believe it will save money (46 percent cite this among their top three reasons), but they don’t actually save anything, and eventually end up listing with an agent.

The same report revealed that,

“While 36% of sellers that (at first) attempted to sell their homes on their own, only 11 percent of sellers—in other words, less than a third…actually sold without an agent.”

It appears working with a real estate professional is the best answer.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, reach out to a local real estate professional to discuss your needs.


Melinda Herrera Headshot
Author:
Phone: 915-471-1758
Dated: December 31st 2019
Views: 73
About Melinda: My name is Melinda and I was born and raised in El Paso. I have had the privilege of seeing this com...

Property Search









RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

8 Frightening Things In Sellers Homes That Can Scare Buyers Silly - No matter how gorgeous your home,
Closing On A House What Sellers Should Expect - Ah, closing on a house. It's the
Why You Shouldnt For Sale By Owner - Rising home prices coupled with
A Downtown Christmas In El Paso - Have you been downtown to see the

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Exit Realty El Paso
299 Shadow Mountain
El Paso, TX
915-209-4787
915-585-9599

Other Locations