Many people, much more than real estate agents would want, are selling their homes by themselves thus saving on commission. But how often do they get what they've hoped for?
Any agent who’s been in the business for a couple of months knows that the words “for sale by owner” are effectively a death sentence. Exceptions are so rare that they only prove the rule. If a seller believes that an agent is not needed, then an agent by default does not receive any benefits from the sale. Not only that, but FSBO houses generally are not doing as well as houses handled by professional agents. Here’s why:
1. They take much longer to sell.
Common people who haven’t sold a house once in their lives are unlikely to know the ins and outs of the process. Owing to this fact, FSBO homes typically take times longer to sell than homes that are sold traditionally, that is with help of a real estate agent. Agents know how to get listings out to the public on various real estate platforms, while someone doing it on their own most likely does not. They are also able to make signing a contract a speedy transaction, while a client, unfamiliar with the paperwork required, can remarkably slow it down. Because of this lengthy procedure, a home becomes less desirable to a buyer.
2. They generally sell for less.
FSBO homeowners sell their property for a sum significantly lower than people whose homes are sold through an agent. This happens for several reasons. People are generally unaware of how much their home is really worth and end up selling it for much less than the valuation price. They may also get tired of the waiting game that goes hand-in-hand with FSBO homes, and will drastically lower the price just to make sure it gets sold. Naturally, after they’ve waited long enough, they usually settle for the first offer they get, because they have grown impatient by that time. Whatever the case, FSBO homes are notorious for their low selling prices.
3. They’re not managed by professionals.
Many buyers prefer going through an agent to secure services of people who know the business and know what they’re doing. On the flip side, they might be hesitant to buy an FSBO home simply because people rarely feel comfortable doing business with amateurs if stakes are this high. For this reason in particular, it is a good idea to use services of an agency every time you need to buy or sell a property. It will save a lot of time, energy, and money in the long run.