The Downside of
For Sale By Owner
By Penny Harmon
Photo: © creasuite - Fotolia
When a homeowner decides not to enlist the assistance of a real estate agent in selling their home, their home will be considered a For Sale By Owner or FSBO. This article outlines some of the downsides of selling For Sale By Owner, as well as for those purchasing an FSBO.
One of the major downfalls of selling FSBO is that these homes are likely to stay on the market longer.
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Many prospective buyers will simply pass on a FSBO home because they want to feel protected in their purchase and they prefer to do this with the assistance of a reputable agent. They also understand that it is difficult for a homeowner to be objective in their pricing because they may be very emotionally attached to the home.
When a home offer on a FSBO does come in, it is often much lower than expected because the potential buyer feels he or she should get a much better "deal" because they are dealing directly with the homeowner.
An enormous advantage of enlisting the help of a realtor is that they are already educated about the real estate market and they have established marketing connections that lead to a quicker sale and higher home offers.
Another plague of selling FSBO is the barrage of bargain hunters and home tourists. Although these people may seem like potential buyers, they are simply looking for a "bottom dollar" purchase or having an evening adventure taking house tours to get remodeling ideas.
A real estate agent that is showing your home generally will pre-qualify all buyers before setting up a showing on your home. They will make sure your home is only shown to serious prospective buyers. |
