With real estate databases like Zillow and Trulia, it makes sense that selling for sale by owner (FSBO) became increasingly popular in recent years. FSBO is this seemingly easy way to sell your house and save money in the process.
But all that glitters is not gold, and the same is true for FSBO. Even if you’re dead set on selling FSBO, take these drawbacks into consideration.
You probably won’t make as much money.
Most people want to skip working with a real estate agent so they can avoid paying thousands of dollars in commissions. And it’s true — going the FSBO route will eliminate those pesky fees.
But what most FSBO sellers don’t realize is that listing with an agent usually garners a higher selling price. Even after paying commissions, there’s a good chance you’d still make more money off your home sale when working with an agent. Their invaluable experience can oftentimes pay for itself.
The research is time-consuming and technical.
From big things to tiny details, the amount FSBO sellers need to know is practically endless. Here are just some of the things you’ll need to research and/or create:
- Comps: What other homes in your area are selling for. Be warned — just checking Zillow is not enough. You’ll likely have to speak to a county clerk to find comps (comparable prices).
- Listing Price: Figuring out how much your house is worth is one of the most difficult parts of selling by yourself.
- Disclosure Statement: Most states require sellers to provide a document indicating issues with the house (such as radon, structural problems, etc.).
Be prepared to handle even more details and responsibilities when selling FSBO.
Negotiations can be exhausting and difficult.
Some people thrive in negotiations, others prefer to let an expert deal with it. Considering most sellers are not real estate experts or agents, even the most confident negotiators struggle to get the best price.
Unlike something you’re selling at a garage sale, your house is possibly the biggest investment you’ll ever make. Sentimental attachments, lack of real estate experience, and inability to handle negotiations can result in losing money — or even losing the sale.
Marketing is more than just listing your house.
Selling your house isn’t just taking pictures on your iPhone and posting on Zillow. You need professional photos and a way to truly get your property out there. In big cities, your online house listing will be a dime a dozen. In smaller areas that are just outside of cities, your house could easily get overlooked and lost in the shuffle.
You could have the best house in the world, but if it’s not properly marketed, it won’t sell.
One small mistake can cost you a fortune.
From signing agreements to preparing closing documents, the number of legal documents and paperwork to go through is a lot. If you’re not extremely careful (and knowledgeable), you could lose a lot of money. Even if you still don’t want to work with a real estate agent, you should, at the very least, hire a lawyer to help you go through documents.
RealtyHive: A Better Solution Than FSBO
Don’t want to work with an agent and pay commissions? You don’t have to! Decide you want someone to help? We’ll help you find an agent! Want to skip showings and sell as-is? By all means! RealtyHive takes care of the marketing, listing price, the time-limited event, and can even help you get money back at closing, all thanks to Cashifyd.
FSBO is definitely an option, and for some people, it works just fine. But if you don’t want to take your chances at such a massive sale, let RealtyHive make selling your house easier than ever. List with RH today!