If you are going to sell your property, one of the things you need to think about is whether to work with an agent or do a For Sale By Owner or FSBO. Many are trying FSBO because they think that they are able to save more. Selling their property in this manner will spare them from paying commissions. In addition to that, they will be more in control of the processes as well as the decision making.
You may enjoy such benefits. However, FSBO has several disadvantages as well. It is important that you know these drawbacks so that you can consider them when you are making such decisions. Below are five disadvantages of selling the property yourself:
- You are not as well informed as the real estate agents. Many sellers who plan to do FSBO are first time sellers. Many are selling the property today not because they are investing on it but because they have to sell it. Bear in mind that there are a lot of changes in the provisions regarding the selling of property. Even the real estate agents are making researches to stay updated.
- The competition in the real estate market is tough. This is why it is difficult to sell a property today. There are a lot of sellers in the market while the number of buyers is very limited. In order to compete in the market, sellers are lowering their prices. Those who do not know how to present their property and market it well, end up in losses. Moreover, if you are competing with experienced real estate agents, your chances are very slim.
- Selling your property is time consuming. There are many processes involved than just putting up the for sale sign. You need to prepare your property as well. If there are defects, you need to fix them first. After that, you need to stage your property and you should include its curb appeal in the preparation. You should also market the property properly. You have to advertise it and make sure you reach as many people as possible.
- You have limited contacts. Marketing can be very difficult because unlike the real estate agents, you do not have access to different lists. It is extremely important that you are able to reach more people so that you can attract more buyers. This way, you get to have more chance of getting good offers.
- You are emotionally attached to the property. If you have are selling the property to avoid foreclosure, it would be very difficult to let go of it. You may overprice it because you think that it should be valued that way. It would also be awkward for you to show it to buyers as well.
FSBO will surely allow you to save more because you will not be paying sales commission. However, you may lose a lot from the expenses incurred in advertising and marketing your property that show poor results. This will lead to fewer buyers and low offers. You will most likely earn more if you work with a competent sales agent.