We all like to save a few bucks here and there, especially when it comes to home ownership.
But some boot-strapping home owners take DIY too far.
Sure, it makes sense to teach yourself how to fix a leaky faucet or replace a broken door hinge.
But at what point does this self reliance go too far?
The answer: when you decide to sell your home yourself.
Some people see listing their home for sale by owner (or FSBO) as a way to save an agent’s commission for themselves.
“I can put a few signs in the front yard,” they tell themselves. “And what’s so hard about taking some pictures and posting them online?”
What they don’t realize, however, is that their choice to go it alone could potentially cost them a lot of time and money.
So how do you turn FSBOs into a client?
In short, through education.
Inform FSBOs of the risks they’re unwittingly taking on and explain the possible negative implications of those risks.
5. They will take longer
On average, FSBO listings will take longer to sell than agent listings. Unless the person selling without representation already knows a person who wants to take the property, this can mean a lot more time spent on the market.
For similar reasons, properties listed by the owner are often incorrectly priced (watch here for some of the most common causes of inflated home prices).
Consequently, close to 20 percent of FSBOs are unable to sell their homes within their chosen time frame.
6. It’s a long lonely road for an FSBO
For better or for worse, FSBOs are lone wolves.
If an FSBO runs into a problem or has a question, they are all alone. Real estate agents have mentors and brokers to go to for help—agents have a network to go to for support. FSBOs do not.
7. Marketing is harder than it looks
FSBOs often underestimate the difficulty of listing and selling their home.
Think putting up a yard sign will be enough to sell your home? You’re not alone.
33% of FSBOs rely on yard signs to market their home.
Only 13% of FSBOs use the Multiple Listing Service (MLS) website.
But what many of these sellers don’t realize is that getting on the MLS is not necessarily enough to make the sale.
Again, as an agent you have a network of connections and prospects who might be interested in a home that would otherwise sit unsold for an FSBO.
8. Less money, more problems
The name of the game for FSBOs is saving money.
However, odds are good that a for sale by owner will be nickel and dimed until their commission savings are nullified.
How much will the home inspection cost? What about signage and flyers? How about that home warranty? The list of small costs that are a necessary part of the sales process can add up.
And that’s to say nothing of the investment of time required for an FSBO.
Without the same resources as an agent, FSBOs wind up making a large investment of time to sell their home.
How much is your time worth?
About Larson Educational Services:
Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online. We are an approved Florida Real Estate School (License #ZH1002299), Florida CAM School (License #PRE31), Florida Insurance School (License # 370501) and NMLS Approved Course Provider.
Larson Educational Services
13040 Livingston Rd. #12
Naples, FL 34105