FSBO: Acronym for For Sale By Owner
What are the pros and cons of selling or buying a home For Sale by Owner? Many people may say or ask: I’ve sold stuff on craigslist or ebay (maybe even sold a car online), whats the difference? What’s so hard about selling a home? Why should I pay a broker to help me find a buyer? As a buyer, why should I have a real estate professional lead me along this path? Who pays the broker when I buy a FSBO?
Firstly, Google the question, there are countless articles from reputable sources that warn against selling or buying a home listed as a FSBO, literally countless of articles. That may be one indication as to the pitfalls of FSBO’s.
Secondly, as someone who works with buyers, I personally have seen buyers stray away from RMLS and “try to buy a FSBO” (try being the biggest word here) but end up in a contract with someone who is not entitled to sell the property, working with a seller who has no idea what their home is worth, usually overpaying because the seller sees their home as a castle (ends up being an issue when the appraisal does’t match the sales price), end up doing a ton of extra work and negotiating with many people (this becomes your second job, on top of your real job), not getting things done on time or correctly for the lender, extended close dates that mess up moving plans, no inspections on their homes (big no-no), and always the possibility of loosing friend s and family during the stressful negotiations.
Thirdly, as an agent who converts a lot of FSBO sellers, the advantages are ridiculously in favor of using an agent to sell your home. On top of getting a higher sales price (the stat is 20% higher then selling FSBO) the good listing agents who specialize in selling/listing homes, are actively looking for buyers for the seller, they are networking with power partners, other agents, possible buyers or people who may know of buyers for your home. They will also spend money on online marketing, past the craigslist solution, listing on RMLS gives the home access to over 8000 agents who share the home with their active clients. The seller is hands off on the communication of the negotiations, of course the agent involves the seller in the negotiations, but the seller doesn’t have to put up with the stress of the communication. The agent will do title searches to make sure the home is marketable and legal to sell. They will also pre-qualify the buyers before walking through your home.
In conclusion, there is much more to discuss, ask your trusted agent or call me!
Ethan Frelly at 503-218-3838 to discuss other pros of using an agent to buy and sell real estate.
…wait, what are the pros? You tell me, I haven’t found any yet.