Wednesday, April 1, 2015

Five Reasons to Avoid Selling Your Own Home

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Today I wanted to speak to you about why you shouldn't be selling your home in a for sale by owner (FSBO) sale. Selling a home is a full-time job, and a lot of FSBO sellers figure this out after their home sits on the market for months without any buyer activity. Below are five reasons why you should avoid a FSBO sale.
  1. Negotiating: There are way too many people that you'll need to negotiate with, and you probably don't have the professional experience or skills to negotiate in a way that puts your best interests on top. There are appraisers, buyers, investors, Realtors, bankers, and more. You need professional representation.
  2. Exposure: Professional Realtors can market your home to thousands of potential buyers, and you probably do not have the ability to reach as many people. This is crucial if you want to get top dollar for your home. 
  3. Number of Sales: Nearly all homes that sell are sold on the Internet. You can no longer just throw a sign in your yard and hope your home sells. You need a dedicated agent who can market your home effectively on the Internet to as many buyers as possible.
  4. FSBO Sales have become more difficult: There has been a 10% drop in FSBO sales over the last twenty years (19% of all homes sales, now down to 9%), and we believe this is because of all the paperwork that's involved in a sale. There are at least 20 pages of disclosures involved, and most FSBO sellers don't know how to properly handle the paperwork.
  5. You Won't Save Money: If you think you can save money on a home sale by not paying an agent commission, then I hate to tell you that most of the time FSBO sellers get much less for their homes in a sale. Studies have shown that Realtors get consistently higher prices for the homes they sell, which nets sellers MORE money than they would have gotten when selling without an agent. In essence, when you sell with a Realtor, your net gain will pay for the price of a Realtor, so it doesn't really cost you a dime if you sell for top dollar.

Selling your home on your own is tough, and I respect FSBO sellers because it's a difficult process. So, even if you're going to sell your own home, at least contact me before you do so. I'd love to give you some tips on how you can improve your sale.

As always, consider me your #1 resource for Colorado Springs real estate!