News Detail

Top 5 Reasons You Should Not For Sale By Owner

In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

Here are the top five reasons:

1. Exposure to Prospective Buyers

Recent studies have shown that 94% of buyers search online for a home. That is in comparison to only 17% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

Where did buyers find the home they actually purchased?

51% on the internet
34% from a Real Estate Agent
9% from a yard sign
1% from newspapers

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

The buyer who wants the best deal possible
The buyer’s agent who solely represents the best interest of the buyer
The buyer’s attorney (in some parts of the country)
The home inspection companies, which work for the buyer and will almost always find some problems with the house
The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
5. You Net More Money When Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $185,000, while the typical house sold by an agent sells for $245,000. This doesn’t mean that an agent can get $60,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.



Go Back

Who We Are

Welcome to Zillastate. Funny name, Friendly folks, First Class Residential & Commercial Real Estate Service.

View more

Why Choose Us

Real estate market, investment strategies, and development.

We are with you all the way, helping guide you through the process.

ZillaState's team will provide you with exceptional service in all your transaction.

Buying your first home can be somewhat intimidating; we are there with you every step of the way.

ZillaState prides itself in tailoring our approach to fit your needs.

Testimonials

I used Zillastate to purchase my first ever home. I'll admit, I was a little nervous and overwhelmed by the whole process. Jed and the Zillastate team turned this "overwhelming ordeal" into an incredibly smooth and seamless process for me. They took the time explain each and every detail so I was looped in and knew what to expect. They listened to my wants and needs and got me the home I wanted at the price I needed. I can now say that it was truly a great experience for me from start to finish. As of a few months ago, I've now used Zillastate to purchase my second home! I guess that speaks to how highly I think of this team.

- 2015 Client, Buyer