It’s interesting that you see fewer and fewer For Sale By Owner signs out there in this tough market. More than ever, sellers are seeing the value of using a full-service realtor. Listed below are some of the reasons 87% of FSBOs eventually turn to a realtor:
• Underestimated amount of time needed and inconvenience of showing their property to prospective buyers.
• Lack of knowledge of contract law and paperwork necessary to complete the sale.
• Lack of negotiating skills/knowledge of the market.
• Inability to find qualified buyers that are able to get the necessary financing to purchase.
Here are some other great reasons why sellers SHOULD be using a realtor that many never even consider:
• They can’t possibly get the amount of buyer exposure that a full service
Realtor can get for their home. The law of supply and demand—more buyers, more chance of getting a better offer on your home!
• Lack of full disclosure from the seller of known defects in For Sale By Owner transactions is the number one cause of lawsuits in these types of transactions.
• No screening of buyers—desperate to sell, many homeowners let any “Joe-Schmoe” who drives by and want to see the property into their homes—can he even afford it? What about security?
• Most qualified buyers use a realtor for many reasons—one is that they do not WANT to have to negotiate face to face with a seller—it makes them uncomfortable.
• Getting the home under contract is just the beginning of the home selling process.
• The truth: even if the seller offers to pay the buyer’s agent’s commission, agents will usually avoid a For Sale By Owner home at all costs. They prefer to deal with a professional realtor, not an emotional homeowner who often has limited knowledge of market conditions and therefore has their home priced 20% too high. Because they don’t understand the process and paperwork, the buyer’s agent often ends up having to do TWICE as much work for the same money--work the seller's listing agent should have done--if they'd had one.
