|Detriments of the FSBO
"For Sale By Owner" Transaction
SAVING THE COMMISSION:
Homeowners often attempt to sell their own home to avoid payment of commission. This generally does not happen. Buyers usually have knowledge of the real estate market and assume that a home being sold by the owner is intentionally overpriced so that if the owner ultimately decides to seek the aid of a professional REALTOR®, he or she will still net the amount being sought. Therefore, the buyer will make an offer less the commission and the homeowner will net less than if a broker had sold the house in the first place.
Homeowners are often not as familiar with the real estate market as professional brokers, and as a result underprice their home and net less money than they could have.
JUSTIFYING THE SALE PRICE:
Prospects do not buy unless they think that the asking price is in line with that of comparable homes in the area. A broker's sales records can justify the sale price to the prospective buyer.
While the owner is advertising only one home, a broker is advertising many. Brokers can provide information on a house to buyers looking at other houses, thus increasing advertising exposure.
HOME SELLING EXPERIENCE:
A broker is trained and experienced in showing homes, presenting benefits to justify cost, and overcoming the buyer's objections.
Brokers ascertain whether or not a prospective buyer is financially able to buy a home before showing it. A homeowner does not typically have access to the resources to qualify buyers.
PROBLEM OF "OUTSIDE LOOKERS":
Having a broker who is familiar with the interior features of a home is of immense benefit, since "drive by" prospective buyers may decide that they are not interested in a home because of its exterior appearance. A broker can urge the buyer to take a second look rather than simply drive away.
"NOT AT HOME" PROBLEM:
A REALTOR® can provide access to a home at the buyer's convenience, whereas an owner selling his or her own home can only show the home when they are available to make an appointment.
ACCESS BY STRANGERS:
The "For Sale by Owner" sign is an invitation to prospective thieves to case a house. REALTOR®s only show homes to qualified buyers.
Brokers are experienced in handling the objections of a prospective buyer in an effective and professional manner that translates into a quick, profitable sale.
Brokers can present a home objectively, whereas owners are often far from objective about their own home. A broker, as an outsider, can put himself or herself in the perspective of the buyer and communicate more effectively.
THE URGENT SITUATION:
When the time in which a home must be sold is finite, it is wise to consult a professional to be certain that the home sells quickly and is marketed properly to attain the maximum selling price.
FOLLOW UP SYSTEM:
Homes often sell on the second contact with a buyer. Brokers "follow up" effectively and do not lower their resistance as much as the homeowner might, avoid selling for a lower price.
Brokers are more effective negotiators as "impersonal go-betweens", and are less likely to lose the prospective buyer in this critical stage.
Brokers are trained to create legal documents that insure final closings. A broker can create a sound contract that is harder for the buyer to breach.
When a broker arranges financing, he or she is in a better position to obtain a more favorable loan for the buyer by placing loans through several lending institutions. In addition, the broker can obtain a more reasonable discount point quote for the seller in cases of refinancing. This alone often make up for commission costs.
When you attempt to sell your home without professional help you are asking your family to open the door to any stranger who rings the doorbell. You have no way of knowing who might call on a newspaper advertisement or who might knock on your door. Your family can not qualify them in advance. There are many people who follow For-Sale-By-Owner ads. Some are just curious and some like to look for decorating tips. Others are just lonely and like to talk. Very seldom do you find a qualified buyer.