Facts and Drawbacks about "For Sale By Owner"
Buying or selling a home may be the most
important transaction of a lifetime. While some
may think they can “go it alone” without the
help of a licensed real estate professional, the
risks may be too great. It takes market
knowledge and expertise to complete a complex
real estate transaction.
It’s often an experience people find less than
rewarding.
Today’s market challenges are prompting more sellers to work with a real estate agent than ever before. The numbers (if not the sellers) tell the
story:
According to the National Association of
REALTORS® 2010 Profile of Home Buyers and Sellers, “for-sale-by-owner” transactions dropped to a record low
5 percent.
Most of today’s buyers are online – nearly 9 out of 10 recent buyers used the Internet in their home search – and unrepresented sellers have no access to major online marketing avenues
Professional experience and insights also pay off. In 2010, a typical property without professional assistance sold for $140,000 compared with $199,300 for the typical agent-assisted property.
Difficult tasks for FSBO sellers can be:
- Setting the right price
- Selling within the length of time planned
- Preparing the home for sale
- Understanding and completing the paperwork
- Having enough time to devote to all aspects
of the sale
In addition to challenges in the market,
owners who try to sell their homes on their own face
the increasing complexity of the transaction
process:
- More disclosures and legal requirements than
ever before
- Underestimating the amount of time required to
market and show their property
- Dealing with security concerns about strangers
having access to their home.
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