As the Real Estate season heats up, families deciding if the time is right to put their homes on the market are facing a choice: to sell with the help of a Realtor or to sell on their own. According to the National Association of Realtors (NAR), approximately 10 percent of homes nation wide are sold "For Sale by Owner" or FSBO. As real estate experts, one of the questions we hear most often is, "Why shouldn't I sell FSBO?"
Statistics Say Your Sales Price will be LOWER if You Go FSBO. NAR stats say the average FSBO sales price in 2012 was $174,900, while the average price for a home represented by an agent was $215,000.
There's Lots of Room for Legal and Financial Trouble. FSBO sellers can end up in legal trouble if they "wing it" and opt out of using an agent who understands the local market, the legal and the negotiation process.
You can see some of the 30ish forms, contracts, and addenda promulgated by the Texas Real Estate Commission HERE. Many of them, as you'll see, are complex, lengthy, and if not used properly can leave you open to liability and litigation.
The Work is Worth The Commission. For most people, it's actually difficult to set up showings and to handle all the phone calls, much less find out if the buyer is really qualified. There are also security issue of letting strangers into your home without the assistance of a Realtor to consider. Plus, you'll be restricting your audience because any buyer using an agent may not want to consider a FSBO sale.
While saving a percentage of your sales price is appealing, make sure you recognize all the risk that you might encounter without professional help.
If you'd like to discuss the pros and cons of selling FSBO, give us a call at 210.566.6355.
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