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RSS FeedFor Sale By Owner can be risky business |
I just read this in our Sunday paper by Dian Hymer:
In a nutshell she states that many homeowners attempt to sell with out a real estate agent in order to save the commission, yet in 2004 15.4% less was gained than in sells where an agent was used.
One risk of selling on your own is you attract buyers that are looking for a bargain. Unless the home is clearly below market value the FSBO buyer will think he can negotiate an even lower price because there are no agents to be paid.
Another contributing factor is 17% of the FSBO homes were sold to a friend, neighbor, or someone who just contacted the seller without the home getting maximum exposuer you will not get the best possible price.
A FSBO seller takes on another risk of not meeting all of the disclosuer and compliance obligations. The cost of paying an agent commission could be a lot less than not meeting these standards. If you still choose to still go without an agent, be sure to hire a real estate attorney to help you abide by the madatory disclosure requirements. These vary from state to state.
Another risk is going into a contract and having it fall apart because your buyer was not qualified. A good agent will make sure you do not accept an offer from a buyer who is not qualified.
Another reason that a FSBO sell may fall apart is there is no one with experiance working to move the transaction along and resolve problems as they arise.
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