Why Selling Your Home as “For Sale by Owner” is a Bad Idea

For people looking at selling their homes, doing it on their own seems like a fantastic idea. Many sellers believe that a “For Sale by Owner” (FSBO) sale will eliminate the middle man and make the entire process quicker and less involved. Unfortunately, this is seldom the truth. In fact, selling your home for sale by owner is often more difficult and sellers often find themselves overwhelmed. Read on for the top five reasons that you shouldn’t attempt to sell your home for sale by owner (FSBO) :

1. Dealing with multiple parties is difficult

When a seller lists a home with an agent, that agent acts as an intermediary between the sellers and all of the other people (including attorneys, buyers’ agents, home inspection companies, banks, and appraisers) involved in the sale. Without an agent, however, the seller is left to negotiate with these people all on his or her own. This can quickly become overwhelming and confusing and may result in mistakes in the sale.

2. FSBO offers minimal exposure

Unless you’re a marketing professional, it’s unlikely that you have a documented, far-reaching strategy to promote your listed home. While 92% of prospective buyers search online listings for a home, only 28% scour newspapers and other print publications. Because online promotion is something commonly handled by an agent, sellers doing it alone often suffer from a lack of exposure.

3. FSBO is just plain difficult

Between mountains of paperwork and endless negotiations, selling a home has always been difficult, but a FSBO sale can quickly become a full-time job. While a listing agent will know the best way to navigate regulations and industry disclosures, these things are often Greek to the everyday seller. Because of this, the majority of sellers hire a listing agent to handle the sale for them.

4. FSBO may result in decreased profits

While many homeowners undertake a FSBO because they believe it will save them money, the opposite is often true. According to recent studies, the average house that’s listed by an agent rakes in $230k while the average FSBO home only sells for $184k. In light of this, it’s wise to consider whether or not FSBO is really the most profitable option before you commit.

5. FSBO may be off-putting to buyers

Buyers commonly have agents to represent them. When a buyer’s agent goes to show a property, they want to know that they will be dealing with a professional agent on the other end of the table. If this isn’t the case, the agents of your would-be buyers might walk away in favor of professionally-listed homes.

The Verdict: Selling Your Home For Sale By Owner is a Bad Choice 

While selling your home for sale by owner may seem like a good idea, it seldom is. In addition to being overwhelming and difficult for sellers, this approach often leaves money on the table and creates a headache for unsuspecting sellers.