The Atlanta real estate market is hot, hot hot! Homes are selling quickly, and prices are rising. It’s not uncommon for a home to go Under Contract in a few days, possibly with multiple offers to consider!! When the market is moving so fast, some homeowners might consider trying to sell their home on their own. In the real estate industry this is known as a For Sale by Owner or a FSBO.
The Top 5 Reasons you Should Not For Sale By Owner
There are numerous reasons that this might not be a good idea for a vast majority of Sellers. Here’s Five of those reasons:
There Are Too Many People to Negotiate With
Here are just some of the people you may have to negotiate with if you were to sell For Sale by Owner:
- The Buyer who wants a deal
- The Buyer’s agent who solely represents the best interest of the Buyer (provided they are doing their job/role correctly)
- The Buyer’s attorney (if they have one — it’s not required in Georgia…the closing attorney represents the lender)
- Home Inspector who is hired by the Buyer and usually finds some issues with the home or condo that need to be addressed.
- The Buyer’s Lender’s Appraiser — but if there is a problem with an appraisal, do you even know where and how to address this?
Exposure to Prospective Buyers
Recent studies from organizations like the National Association of REALTORS (NAR) suggests that up to 89% of home buyers search online for a home. That is in comparison to say a newspaper ad. (Who looks at those?)
Most real estate agents will have a Marketing Plan and an on-line strategy to get your home the most exposure. Are you familiar with Facebook advertising, Instagram, Twitter, not ot mention decluttering, staging, photography, scheduling showings, provided access to the home (lockbox) and the list goes on. What’s your strategy?
Results Come from On-line Advertising
These numbers can vary from organizations depending on who conducted a study…but the numbers still speak for themselves… Where do buyers find the home they actually purchased?
- 44% On-Line
- 33% from a Real Estate Agent
- 9% Yard Sign –driving the neighborhood and finding your sign
- 1% from Newspaper
The days of selling a home by simply “sticking a sign in the yard” are long gone. Even in a fast moving market, you still have to…market.
FSBO has Become More Difficult
From a Purchase Contract, to Seller’s Disclosure Statements, HOA information, amendments, financing contingencies, appraisals, ane more….the paperwork and detail involved in buying and selling a home has increased substantially. This is one of the reasons that NAR has reported For Sale by Owner listings have dropped from 19% to just 8% over the last 20 or more years.
You Net More Money when Using an Agent
There is a mistaken idea that when you sell your home on your own, you will save money. Meaning the real estate commission. Well, if an agent brings a Buyer, they will be looking for a commission. Sure, that might just be one-side of the sale that is receiving a commission (and what you are paying) but then we go back to the previous item…..handing all those details and stuff….Studies have shown that a typical house sold by the homeowner sells for $210,000 while the the typical house sold by an agent sells for $249,000. (Keep in mind markets or specific condominium buildings or communities can be very different)
Now this does not mean that an agent is going to get you $39,000 more for your home…it must appraise for the sales price. Studies show that people in a lower price point have a tendency to try and FSBO, and this may be the time and place you need representation the most!
The End Result
Let’s sit down and talk about your options and the challenges of selling your house on your own! You may just find having a professional on your side, to manage all the details and keep YOUR stress to a minimum could be well worth it!
We are here to answer your questions and help you with the selling process! Call, text or email me anytime…I’m here to help!