Listing your home as a FSBO has huge risks

KEY LARGO, Fla. - July 24, 2014 - PRLog -- Per Sally Stribling top producing Real Estate Agent for Coldwell Banker Schmitt in the upper Fl Keys, "For the great majority of consumers, their home will be their largest investment, surpassing retirement savings, assets-owned, and any other investment vehicles. Combine this inarguable fact with the emotional bond which comes with homeownership, comprised of fond memories and improvements, it’s little wonder why some choose to go-it-alone when it comes time to sell.

The task seems simple enough, cleaning from top to bottom, sprucing-up the curb appeal, making a few necessary repairs, and advertising in the local newspaper, as well as online. This strategy alone will save thousands in real estate commissions; or, will it? The inescapable fact of the matter is, FSBO or For Sale Buy Owner properties perform very poorly on the market.

What FSBO’s Should Know

First and foremost, the power of the Multiple Listing Service, or MLS cannot be underestimated. That’s because of all initial buyer property searches, a whopping 92 percent are done online, compared to just 28 percent of newspaper searches.

What’s more, buyers who find the home they ultimately purchase find it through official sites like Realtor.com, equal to 43 percent. Yard signs which facilitate a purchase transaction account for only 9 percent, while newspaper ads make-up about 1 percent.

That only explains how buyers search and decide on a property, it does not account for the final sales price. Compared to agent-assisted sales, FSBO’s lose between 10 percent and 13 percent in the final sales price, while professionally marketed properties perform oppositely, bringing-in 10 to 13 percent more, according to the National Association of Realtors. In a normal performing market, FSBO sales average $184,000, while those sold through an agent average $225,000.

FSBO’s Put Sellers at Risk

For those who believe this won’t be the case with their own property, another thing to consider is time and effort. Home sellers will have to field calls as they come and be prepared to show their property on a moment’s notice. What’s more, DIY home sellers will make many mistakes while hosting open houses, from loitering to hard-selling to making inaccurate statements about the history of the property.

This, not to mention the fact that nearly every buyer seeks the advice of an agent or broker. Those individuals will steer their buyers clear of FSBO properties. That will put a network of literally hundreds of other buyers’ agents out-of-reach.

Then, there’s the matter of negotiation, legal issues, and actual facilitation of the transaction. A full 75 percent of all residential real estate transaction litigation stems from sellers not being aware of their legal duties.