The number one reason some home owners list their home for sale as a FBSO (For Sale By Owner) is to save on the commission. In the long run though this could end up hurting rather then helping the old pocket book. There are various reasons why selling your home on your own is not such a good idea.
1. For one thing most home buyers looking for a home will equate a for sale by owner as a bargain because they know that the seller is not working with a Realtor® and does not have to pay a commission.
2. There is no way to tell if the people coming to view the property are serious about a home purchase or if they have been qualified for a mortgage. This can be risky because the buyer may not be able to come up with the required funds at closing.
3. A seller will have to do most of the work themselves such as doing open houses to showing the property at odd times of the day or night as well as negotiating the price. A lot of times sellers lack negotiating skills and can loose potential buyers
4. Sellers will usually list the home higher then the market value because they lack information on the comparable properties in their area. A REALTOR® has access to this information and thus is qualified to help homebuyers list their home at fair market value to help them sell their home quickly and at the best price.
5. Marketing costs can also add up and if by the end of it all the seller is still unable to sell his home on his own, this expense would be considered a loss. A REALTOR® fee is inclusive of marketing costs. This means your home will be advertised on the MLS, newspaper ads, open houses, for sale signs, and finally a REALTOR® markets your home to other agents which will bring in prospective buyers.
Research shows that nine out of ten for sale by owners end up hiring a real estate agent to sell their property. Also, if you are on a time frame to sell it is best to hire a professional REALTOR® as you might end up selling quickly and for less money then the market value of your home.
Indu Seth
Sales Representative with Signature Service/GMAC Real Estate
www.induseth.com
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