We’re guessing most, if not all, home sellers at least entertain the idea of selling a home without a REALTOR (For Sale By Owner or FSBO). Some sellers don’t think a professional REALTOR is needed, particularly in a market like Nashville’s. Most of the time, FSBO sellers are looking for ways to save money. We certainly understand wanting to make the most profit off the sale of a home, and we are familiar with the misunderstanding people have about a REALTOR’s day. Still, there reasons that approximately 9 out of 10 FSBO sellers wind up listing with an agent. If you do plan on taking this approach, it’s important to be aware of the biggest risks with FSBO.
Overpricing
Overpricing is probably the biggest risk associated with FSBO homes. Almost all home sellers place a higher value on their home than an appraiser does. This is usually because seller’s place an emotional value to the home. This also happens when a seller hears that a home “down the block” sold for a certain amount of money and the seller assumes their home should get the same price. The problem is the seller may not understand how to accurately compare the homes. Once the home is overpriced, it may turn away potential buyers.
Exposure
Ensuring that a newly listed home gets in front of as many potential buyers as possible is part of a listing agents job. Too often FSBO homes are unable to get the same kind of exposure since many online sites won’t list those properties. FSBO sellers also miss out on the networking agents bring. In Nashville today, it’s not uncommon for a home to sell even prior to listing because agents already have potential buyers waiting for homes.
Inexperience
Selling a home is a complicated process, involving a lot of moving parts and paperwork. Most FSBO sellers simply lack the experience and knowledge necessary to screen buyers, negotiate offers, handle inspection results, understand contracts and adequately prepare for closing. The fact is, selling a home can become a FSBO second full-time job.
While sellers may think they are going to wind up with more money in their pocket via FSBO, the fact is most FSBO homes wind up selling for less than those listed with an agent. The stress and complications involved are simply not worth it for most home sellers. If you’d like to know more about working with an experienced agent vs listing FSBO, call DeSelms Real Estate today at 615.550.5565!