Top 3 FSBO Mistakes You Need To Know
FSBO Mistake #1: True Market Value.
The only way to know your home’s true market value, is by letting it experience the market. If you are solely relying on your Zillow or Redfin listings to bring you market buyers with offers, you are doing it wrong.
You need to list your home on the MLS, which then syndicates your listing to hundreds of different real estate websites on the internet available worldwide. This is how you increase your odds of getting the highest and best offer.
FSBO Mistake #2: You Are On Your Own.
Here’s a question: Would you go to your own trial without an attorney if you knew you had the money to pay them under the condition of winning the case? It’s very unlikely. Who’s going to have your best interested in mind and who’s going to stand by your side throughout the process and walk you though the many options and scenarios of the trial, you? Probably not the best scenario right there.
The same applies to FSBO, because 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 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 consequences. 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.
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, stressing over having no traffic or traffic from 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, assuming the risk associated with not having a licensed and insured agent to represent you, making monthly mortgage payments during the listing period, maintaining the property, not having any professional guidance and trusting your own judgement will 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.
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.