For Sale By Owner and Why It’s A Bad Idea

For Sale By Owner – What is it? 

In our line of work we occasionally meet people who want to do For Sale By Owner (FSBO).  This essentially means that as a seller you are choosing not to use a Real Estate Agent.  Instead the seller is choosing to perform all of the professional responsibilities themselves. 

Why FSBO?

The next important thing to look at is the why?  Why would anyone want to sell their own home?  After doing a lot of research on the subject, I can see it coming down to one topic that can be broken into several groups: saving on cost/money.  As a home is likely the largest investment most people will make in their lifetime, money is understandably something that concerns sellers. The basic groups are as follows:

• Seller may owe a lot of money on their loan(s) and does not feel they can afford one
• Feel agents are not worth the 3% that they would be paying
• Trying to save money for the next home
• Feel they can do it themselves because there is not much to it

Why NOT FSBO?

FSBO is always an interesting topic because as a real estate agent you are a professional.  You would not ask to fly your own airplane to save money on a ticket because the pilots are trained professionals. Like most professionals, there are classes, certifications, and education requirements in order to be a real estate professional.  The interesting part of choosing FSBO is that the seller is often worse off than those who choose to use an agent. The National Association of Realtors shows that FSBO homes sell for significantly less than those who were assisted by a real estate professional.  

Agent Benefits

We have talked about what For Sale By Owner is and why it is often not beneficial to the seller.  Let’s talk about why real estate agents are the professionals that you need to protect your greatest investment. They offer: 

• Professional negotiators
• Trained to handle all legal documents that protect you as a seller
• Help to get the home ready for sale 
• Someone to hold open houses for you
• All potential buyers are pre-approved and screened
• Have the time to handle any and all inquiries with potential buyers
• Marketing including access to MLS and a network of other agents
• Adept to handling inspections and any work associated with it
• Stress-free sale
• Years of knowledge in the real estate industry that only comes from experience

Still Concerned About Cost?

Talking about 3% can be scary when it is your biggest investment in life.  Blackhawk Homes, LLC offers several programs to help. We even offer a 0% commission package to help sellers who are in a financial pinch.  Contact us to see how we can help you today.