For Sale By Owner (FSBOS): Reasons Why They Aren't A Great Idea...

  1. Marketing & Visibility: There are two things that affect the sale of a property and the first one is marketing. When you list your home on Zillow as a FSBO, that is the only place where your home exists. Your home will NOT be listed in the Multiple Listing Service (MLS) or any of it’s 90+ syndicated web sites. Most buyers (~98%+) will be using a broker who is using the MLS to feed their property selection. In other words, your home will me missed!

  2. Pricing: This is the FATAL flaw of FSBOs or any real estate transaction. Everyone believes they have the best home and that is understandable given the emotional attachment to your home. However, the ONLY thing that dictates price of a home is the real estate market. Homeowners typically lack the tools to appropriately price a home and they’re usually being very subjective or worse… guessing! When pricing a home, you must take the following into consideration:

 

    1. What homes have sold in your neighborhood in the last 6 months?
    2. Is the market the same as it was 6 months ago? Hint… it’s not!
    3. What is the square footage of those homes in comparison to yours?
    4. What is the condition and build quality of those homes compared to yours?
    5. Is your home up to date or in need of repairs? A new roof or HVAC are not considered “upgrades.”
    6. If there are no homes sold in your neighborhood in the last year, then, and only then, can you use homes outside your neighborhood for comparisons, but these homes will be adjusted accordingly which can help or hurt you.
    7. Lastly, the only opinion of value that matters is the appraisers! So, PLEASE use a broker and don’t over price. Your home will sit and that will stigmatize the property!

  1. Errors: Many individuals overstate square footage, or don’t understand what constitutes as “livable square footage.” For example, if you have finished attic space you may only use the square footage where the ceiling height is above 5’. Also, basements are considered livable square footage IF they are finished but they still only bring in 25% of the value that above grade square footage brings.

  2. Legality: This is a huge one! Most sellers believe that real estate is easy but there are so many issues that arise that require the navigation of a professional. For example, in North Carolina do you understand the Due Diligence Period (DD Period)? When do you get your money back? What is your recourse should a buyer breach inside the DD Period? What about after the DD Period? What happens if you don’t provide a Seller’s Disclosure (RPOADS)… Hint, it’s not good and you can lose a deal at the closing table.

 

 

Looking To Sell Your Home In the Triangle?

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Post a Comment