Selling a house involves too much of a financial and legal responsibilities. As a seller, you need to pay fees that could prepare the house for sale. You would have to seek services to assist you in preparing the documents and contracts. Not to mention, the time and effort you have to invest to make the sale a smooth process.
Because of the difficulties people are facing right now, they want to sell their properties and get every cent of what it is worth. As a result, they will be cutting other expenses involved in home selling to increase their proceeds.
This is pretty much how “For Sale by Owner” or FSBO works. People actually think that it can result to savings because they would not have to pay a broker’s commission. Instead, they will carry out the task of an active agent by themselves.
Although a great deal of money can be saved in here. However, do you think it is worth all the trouble? More than often, it is not. Here is why:
No Easy Access to MLS
Multiple Listing Services or MLS is one of the most effective tools used by agents in home selling. This service works to help real estate agents to enlist the property online, share the information with other broker and match the property to a prospect buyer.
Since in FSBO, the service of the real estate agent is forgone, they will not have access to MLS. They would have to do extensive advertising by themselves like using newspapers, signage, internet posting and open houses. This could be much of a hassle, especially when you have a demanding job and a family to take care of.
Some people may avail of the MLS flat rate just to get their homes enlisted. However, that is just it and it is in fact, still, an added cost in your part.
Lack of Experience and Training in Home Selling
Could you honestly say to yourself that you could learn the intricacies of home selling overnight? Do you think that you could pull FSBO just by research and seeking the assistance from the lawyers and title companies alone?
If not, then FSBO may put your in a greater risk. It may jeopardize your interest and your buyers. The lack of knowledge and expertise in home selling could possible lead to these things:
- Failure to fulfill the agreements of the contract that could lead to possible lawsuits
- Failure to mention all conditions of the sale that could protect them as a seller
- Difficulty of negotiating, especially when the buyer is represented with a knowledgeable agent
- Application of ineffective marketing skills like making everything personal and emotional
- Over pricing homes
The presence of the agent will ensure you that you won’t be compromised in the process. They do not only help in the actual selling of the house but they see through it that you will be protected, at the same time, get your house’s worth. Since in FSBO, the sellers do things by themselves, it would be hard to do ensure the smoothness of transaction (most especially for inexperienced sellers).