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    Why You Shouldn’t “For Sale By Owner”

    Why You Shouldn’t "For Sale By Owner" | MyKCM

    Rising home prices coupled with the current inventory in today’s market may cause some homeowners to consider selling their homes on their own (known in the industry as a For Sale By Owner). However, a FSBO might be hard to execute well for the vast majority of sellers.

    Here are the top 5 reasons not to FSBO:

    1. Online Strategy for Prospective Purchasers

    Studies have shown that 93% of buyers search online for a home. That’s a pretty staggering number! Most real estate agents have an Internet strategy to promote the sale of your home. Do you?

    2. Results Come from the Internet

    According to NAR, here’s where buyers found the homes they actually purchased:

    • 55% on the Internet
    • 28% from a Real Estate Agent
    • 10% Other
    • 6% from a Yard Sign
    • 1% from Newspapers

    The days of selling your house by putting up a sign in your yard or placing an ad in the paper are long gone. Having a strong Internet strategy is crucial.

    3. There Are Too Many People to Negotiate With

    Here’s a list of some of the people with whom you must be prepared to negotiate if you decide to FSBO:

    • The buyer, who wants the best deal possible
    • The buyer’s agent, who solely represents the best interest of the buyer
    • The buyer’s attorney (in some parts of the country)
    • The home inspection companies, which work for the buyer and will almost always find some problem with the house
    • The appraiser, if there is a question of value

    4. FSBOing Has Become Increasingly Difficult

    The paperwork involved in buying or selling a home has increased dramatically as industry disclosures and regulations have become mandatory.  This is one of the reasons the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years. In addition Washington has recently made changes to the tax law that applies when selling a house.

    5. You Net More Money When Using an Agent

    Many homeowners believe they’ll save the real estate commission by selling on their own, but the seller and buyer can’t both save the commission.

    A report by Zillow revealed that FSBOs are inclined to do so because they believe it will save money (46 percent cite this among their top three reasons), but they don’t actually save anything, and eventually end up listing with an agent.

    The same report revealed that,

    “While 36% of sellers that (at first) attempted to sell their homes on their own, only 11 percent of sellers—in other words, less than a third…actually sold without an agent.”

    It appears working with a real estate professional is the best answer, and if a bad past experience or the fear of choosing a bad agent is holding you back use these questions help choose a skilled agent every time.

    Bottom Line

    Before you decide to take on the challenges of selling your house on your own, let’s get together to discuss your needs.

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    We speak North West. We speak Real Estate.

    This was our first sale and second home purchase and Jeff guided us through both incredibly well. He stated he will have our old house sold in two weeks and he did! Two weeks exactly! Obviously selling and/or buying a house is not something you do often and honestly after moving into our awesome new house I don’t see myself selling and moving again any time soon. But, when we do decide to sell and buy again we will make sure to call Jeff again.
    Jorge D., Issaquah