You have probably seen FSBO (or for sale by owner) signs around your suburb or on real estate websites, so what is it and what are the pros and cons?– It’s exactly what it says a vendor selling their home themselves without the help of a real estate agent.
What is Involved?
There are many low-cost or flat-fee providers available to engage these days. It can be tempting to sell your home this way because of the potential saving of thousands of dollars in agents’ commissions. These companies also have access to online advertising and a host of other marketing tools, such as “For Sale” boards, property reports, printable brochures, and more.
But is this the way to go?
People have reported success using these services, but will they ever really know whether a skilled and knowledgeable real estate agent could have negotiated a better price for them.
Like many things it depends on a host of factors. Here are some of the pros and cons to consider before selling your property yourself:
Pros of Selling your Home Yourself
- Study the local market to find a selling price, use a valuer or subscribe to real estate websites.
- Do renovations to make your house more appealing.
- Conduct your own open homes and inspections at times that suit you.
- Follow up leads and with those who attend your inspections.
- Negotiate with potential buyers.
- Point out the benefits of the home and neighbourhood to prospective buyers.
- Put all the effort into selling one home, rather competing with a portfolio of other homes on the agent’s books.
Cons of Selling Your Home Yourself
- Even with money saved on commission, you risk not selling your home for what it’s worth.
- Selling property is not what you are trained or specialised in. A real estate agent sells property, they understand buyer concerns, the market and negotiating prices.
- A real estate agent has more avenues to widen the marketing net such as his or her own database of potential buyers, the agency’s website and connections to other agents.
- You may lack time to follow up interested parties or attend inspections. Just styling a home for sale and then keeping it presentable can take a lot more time and energy than most people expect.
- Work commitments may hold you back from taking calls or from taking off time to open your house for inspections during the week or from meeting with prospective buyers at times convenient to them.
- An experienced agent will know what will work best in your area and for your type of property and can help ensure your marketing budget is well spent and perhaps even save you money.
- Potential buyers might try and negotiate you down, because they know private sellers are generally inexperienced, and there is no commission to pay.
- An agent may be more professional and impartial than you in selling your home and has no emotional attachment to your property.
- An agent has access to stylists, cleaners and builders who have done good work for other clients and will often have already negotiated good prices for these services.
- An agent will be up on all the legal requirements and documents you need to sell your house and will advise you about these during the sales process.
The Bottom Line
Speak with reputable real estate agents that you feel comfortable with and are active in your area, to get the best advice. Only you can really decide if you have what it takes to effectively market and sell your property.