For Sale by Owner Pitfalls

Posted by Monty Crawford on Saturday, February 16th, 2019 at 12:25pm.

For Sale by Owner

Many people consider selling their home on their own in the Austin and Lakeway real estate market. In this industry this is called a for sale by owner or FSBO. Though it is certainly not impossible to sell your home yourself, in the interest of time, money and saving sanity there are a few things to consider before attempting a do-it-yourself real estate transaction.

The typical reason most people want to sell their home themselves is to save on the realtor commission. One of the issues here is that buyers looking at FSBO's also believe they will save the realtor commission. Both parties cannot save on the commission, the seller intends to pocket it and the buyer intends to get a lower price since there is no commission. The most important consideration here is that according to the National Association of Realtors 2016 Profile of Homebuyers and Sellers the average FSBO sales price was $185,000, while the average price for a home represented by a realtor was $245,000 that is a difference of $60,000. Selling your home with the help of a real estate agent will get you enough profit to cover the commission and put some money in your pocket in most circumstances.

A real estate agent representing you for the sale of your home will help you navigate the seemingly endless amount of paperwork and coordinate the negotiations with the many people and institutions one must work with when selling a property. The paperwork involved has increased dramatically as industry disclosures and regulations have become mandatory. Your agent can effectively negotiate with the buyer who is wanting the best price, the buyer's agent the buyer's attorney, inspectors, appraisers, financial institutions and the title company.  Most people who have sold their home will tell you their real estate agent was worth their weight in gold at the end of the day.

Most home buyers in today's real estate market search for their home online. Less than 10% find their home from yard sign, and fewer than 1% find their home from a newspaper ad search. Today's real estate agent usually has great online internet marketing strategy to promote your home. This goes beyond placing a picture and description on a classified ad site. This marketing usually involves strategic use of social media and MLS marketing sites. Most of these things are not available to the average person trying to sell their home.

It does not cost anything to sit down with a real estate agent and discuss your real estate goals for selling your home or property. It is a wise business decision to speak with an industry expert to determine how to best move forward with the sale of your home or property.

If you are a first time homebuyer or seasoned buyer or seller, and would like a caring expert to be with you every step of the way, contact the experts at Crawford Realty Group to learn more or arrange a showing. If you'd like to have homes for sale in these areas emailed to you, sign up for our free home finder service and specify which types of homes you'd like to receive updates about.

Leave a Comment

Format example: you@domain.com
Format example: yourwebsitename.com