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Why You Should Not Do For Sale By Owner

Wednesday, September 18, 2019   /   by Jake Batac

Why You Should Not Do For Sale By Owner

Should you sell your home on your own as a FSBO…Why not, you may ask…

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Today we're going to talk about why you shouldn't sell your house on your own. This is a big one.

There's a variety of reasons for it. The number one reason was exposure to prospective buyers. According to an article in NARS, 95% of buyers searched online for their home last year. That's a comparison to 13% of buyers looking at print newspapers, ads, and so on. Most real estate agents have an internet strategy to promote the sale of your home, so when you're selling on your own, do you have that kind of capacity?

The exposure you need to have is digital presence, you need to have digital marketing, you need to have your home online to prospective buyers that are starting their home search like that. And the number two is results come from the internet, so basically based on studies, 50% of the buyers on the internet, 28% come from an agent, 7% from a yard sign, and 1% from a newspaper. Do you want to miss out on those buyers?

And a lot of agents, if you're working with an expert, with a professional, with good experience or with a team, they have a database of buyers sitting there just waiting to see your home. Does it really benefit you to miss out on all of those buyers?

The third reason why you shouldn't sell by yourself is there are too many people to negotiate with. It's not just like you're dealing with a seller. You're not just dealing with the buyers, you're dealing with the buyer's agent, you're dealing with the home inspector, appraiser, maybe the lawyers of the buyers. You have to deal with all these different people, sometimes simultaneously, to make sure that you address the different parts of the process.

It's a lot more complicated than it used to be, and as a matter of fact, the number of sellers that are actually selling it by themselves has dropped dramatically over the years from I believe it was 19%, it dropped to 7% now are doing it.

And not just that, but when you're selling your own house, you may have an emotional attachment to that house. Maybe you've done a lot of work in the house that you think is amazing, and a lot of times it is, but sometimes it's hard to look at it objectively, because you're looking at it in an emotional way. That can really, really affect the bottom line price. 

And basically it's becoming much more difficult to sell for sale by owner, so that is the fourth one. A lot of people, it's increasingly, dramatically has changed over the years. A lot of forms and all these different amendment schedules, commission structures, trust accounts.

There's so many different clauses and conditions to protect buyers and sellers, so when doing the paperwork, who's really reviewing all of that? Who's protecting you?

And number five is you may think that as a for sale by owner, you're going to save the commission, but based on studies and reports, it shows that sellers that sell by themselves, they net less money than if they sold it with an agent.

Watch full video here: https://youtu.be/9zh0SxDRupY

  broker, real estate, toronto platinum realty team, toronto home selling