2016-10-05
5 Reasons to rethink doing a For Sale By Owner

In today's market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known as a For Sale By Owner, (FSBO). 

Here are the top 5 reasons to rethink that strategy:

  1. Exposure to Prospective Buyers

Current studies show that 91% of buyers search online for a home.  That is in comparison to only 11% looking at print ads, such as newspapers, real estate magazines, etc. Most realtors have internet strategy to promote the sale of your home. Do you???  

  1. Results Come from the Internet.

Where did buyers find the home they actually purchased?

  • 45% on the internet
  • 34% from a Real Estate Agent
  • 9% from a yard sign
  • 1% from newspaper/magazines

The days of selling your home by just putting up a For Sale Sign and putting it in Newspaper are long gone.  Have a strong internet presence is crucial. Zillow is now the #1 online website for property searches and not only do FSBO advertise their properties, but so do Realtors and Realtors have the advantage because,  if they are paying to be a premier agent, their contact information shows up on the side of the property, even if it is not there listing; therefore a consumer looking online will contact the agent before contacting the actual owner of the FSBO and you just lost a potential buyer for your home.  

  1. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner.

  • 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 (only if no agent is involved)
  • 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
  • The lender if a loan is involved (limited information provided)
  • Title Company (Colorado)

  1. FSBO Has Become More and More Difficult

The paperwork involved in selling and buyer a home has increased dramatically as industry disclosures and regulations have become mandatory.  This is one of the reasons that the percentage of FSBO has ped from 20% to 7 over the last 25 years.

  1. You Net More Money Using an Agent

The #1 reason most sellers try a FSBO first before using a realtor is to save money and buyers tend to look at FSBO thinking they are saving money too.  This is not always the case.  Sellers doing a FSBO, tend to list higher, not realizing the actual market trend and going off of real estate websites, for example Zillow for their Comparative Market Analysis.  Realtors work off of “real” numbers from our Multiple Listing Service, which the public does not have access to. Listing higher slows down showings especially in this the competing market we are in right now and days on market will increase.

 

Bottom line, before you decide to take on the challenges of selling your home on your own, contact FarrisPrice today to see what we have to offer our Sellers in this market.   

Welcome to our Blog!
2016-12-06
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2016-11-22
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2016-10-31
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2016-10-11
Colorado Springs Community Update 10/11/2016

2016-10-09
CO Springs Named a Best Big City by Money Magazine

2016-10-05
5 Reasons to rethink doing a For Sale By Owner

2016-09-29
4 Important Tips for Selling a Vacant Home




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