Top 3 FSBO Mistakes You Need To Know
FSBO Mistake #1: True Market Value.
So you’ve considered doing a For Sale By Owner and selling your house without using any realtors.
Unless you have undeniable experience in buying & selling multiple houses and you know the value of your property in comparison to other similar like-kind houses around you including the difference between your condition and the condition of the homes sold and/or available around you, do not rely on your own opinion and definitely not on a “ballpark” zillow or redfin estimates.
Over-valuing or under-valuing your home if you decide to sell it yourself can have a serious negative impact on your listing, and on your results.
Listing with an experienced real estate agent will syndicate your property listing to hundreds of different real estate websites on the internet available worldwide, guaranteeing maximum exposure to serious buyers while also assuring you are priced correctly under the guidance of your experienced real estate agent.
FSBO Mistake #2: You Are On Your Own.
Here’s a question: Would you go to your own trial without a strong attorney if you knew he’d only charge you if he won your case? It’s very unlikely.
The same applies to FSBO’s.
You won’t know if the offer that’s being presented to you is a solid offer, or if the buyer’s lender is a solid lender and whether or not the terms and conditions of the offer will hurt you or benefit you, and if the buyer’s agent has “mickey moused” the deal somehow.
You will have to rely solely on your own knowledge, experience and “instincts”. More than so, you are not protected by an agent’s errors & omissions insurance, and if you make any mistakes with the sale of your home, it could result in some serious ramifications.
Lastly, holding costs. By the time you figure out what went wrong with your FSBO listing, you’ve already made 2-3 mortgage payments and spent time and energy on speaking with hungry realtors that want your listing, that time could have been spent on more productive tasks that make you money and take away the stress of dealing with the sale.
Sometimes, it’s simply better to put down the ego, and let a professional focus on making you more money and relieving you from all that unnecessary stress.
FSBO Mistake #3: You spend MORE money without an agent.
Here’s what you’ll spend your time doing as a for sale by owner:
Taking pictures, paying someone a small fee to list your home, printing flyers, posting signs, holding open houses, getting your phone blown up by realtors who want your listing, dealing with low ball buyers and investors, negotiating with said low-ball buyers and investors, opening escrow and title, having hands on involvement with state required seller disclosures and communicating them between all parties or relying on an escrow company to do it for you (they do not represent you like a realtor would), assuming the risk associated with not having a licensed and insured agent to represent you, making monthly mortgage payments during the listing period which can take a lot longer than a realtor listing, maintaining the property, not having any professional guidance and trusting your own judgement, which could lead you to an epic loss.
Remember, time is money. Your agent could be doing all of these tasks on your behalf with more experience and diligence to sell your home for top dollar and in the shortest amount of time so that you could focus more time on your family, making money, and your next move.
Disclaimer: This article is provided for informational purposes and should not be relied upon as legal advice during a real estate transaction. Please speak to your Real Estate agent or attorney for any advice. If you would like to work with a Skyworks Real Estate agent, please contact us directly.