Selling your home on your own may seem like an attractive idea on the surface. You’ll save up to 4 to 6 percent of the sale price on your home and pocket the commission typically paid to a realtor. This means on a $300,000 home, you can save $12,000 to $18,000 by going the FSBO route.
However, listing your home as “for sale by owner” is often a waste of time and money for the homeowner and may have legal consequences if you don’t abide by the strict guidelines of FSBO listings.
This article covers what a FSBO is and three reasons why selling your home without a realtor is a bad idea.
How a FSBO Listing Works
Instead of contacting a local realtor, homeowners have the option to sell their home without representation and therefore don’t need to pay realtors their standard commission on the sale price of the house.
Those who list their homes without a realtor are responsible for marketing the listing, conducting open houses, and staging the home. These are typical aspects of selling a home that realtors have expertise in and can help you navigate as a homeowner.
Reasons Why FSBO is a Bad Idea
FSBO listings rarely work out well for the homeowner. Unless you’re a realtor yourself or have extensive experience in the real estate industry, hiring an experienced realtor will ensure you have a seamless selling experience and get the most for your home.
Below are three reasons why FSBO listings are a bad idea:
Price Negotiations
Even the most experienced salespeople don’t know the basics regarding negotiating home prices. Going up against the buyer’s realtor without knowing how to approach negotiations will likely lead to you getting less for your house than you would if you worked with a realtor.
Legal Risks
FSBO listings also come with a fair amount of legal risk. You’ll need to know exactly how to handle all the paperwork and closing documents without a realtor to guide you through the process.
Additionally, the seller’s disclosures are required to inform the buyer of any potential risks affecting the home’s value. Without a competent realtor, you may be committing fraud or a breach of contract if you fail to make the proper disclosures.
Safety Concerns
The final reason that a FSBO listing is a bad idea concerns the safety of the seller. You’ll have a stranger come into your house who may have malicious intentions like planning to rob you or break into your home in the future. Using a realtor ensures you know exactly who each person is that enters your home.
Final Thoughts
Listing your home for sale by owner hardly ever works out well. While you may be able to save some money from the realtor’s commission, you’ll be at a disadvantage when it comes to negotiations which can erase any profits you receive.
There are also liability issues and seller’s disclosures that an experienced realtor knows how to handle for you throughout the process.
Find out why Kaya Homes is the leader in Long Island real estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, East Rockaway, Woodmere, Cedarhurst, Hewlett Harbor, and Freeport area. www.kayahomesny.com
Wed, 17 Aug 2022 23:10:25 +0000
