Brenda Freeman – Blog Post – For Sale By Owner
For Sale By Owner Case Study Shows The Pitfalls Of Not Using A Professional Agent
For those who are unfamiliar with the real estate market, listing your own home yourself might sound like a good idea at first. Afterall, who knows your home better than you? This is what the industry calls "For Sale By Owner" or FSBO. It’s a term that refers to a method of listing a property for sale, in which the owner will be responsible for the sale without the help of professional real estate broker. But before you take the DIY route, there are a few things you should know, starting with why FSBOs often fail.
Six Reasons FSBOs Fail
According to a recent Inman.com article, there are 6 reasons FSBOs fail epically even in a hot market. Among these are bad pricing, lack of marketing, no access or lack of responsiveness in showing times, inability to talk money, unrealistic expectations, and agent avoidance.
I understand and respect people who do not want to hire a real estate agent for the sale of their home. But I have had such great success in making people money, that I cannot sit idly by and watch people leave money on the table – or even worse, make a critical financial mistake.
Here, I share my personal insights and client experiences to hopefully save you unnecessary headaches down the road.
Top Reasons You Should Use A Real Estate Agent
What is the number one reason you should use a Realtor? For starters, you will net more!
Let me ask you this, what is your motivation to do a For Sale By Owner? Is it to save on commission? Intuitively people think – less commission, higher net. This is not the case with a good Realtor. The right Realtor will get a higher net while covering their fees. In fact, people are not usually great negotiators when dealing with their own emotions. There is a saying, "an attorney who represents himself has a fool for a client."
What does this mean? You could leave two, three, or four percent on the table! By using a skilled real estate agent, you might get multiple offers and also benefit from the advice only a seasoned Realtor who has compared and closed thousands of contracts can provide.
Getting Buyers Is Only Getting To First Base
Of course, there are a few things aside from financial gain that can make one contract experience better than another. For example, this week one property had 64 showings and 31 offers. It is EASY to find buyers with our current market conditions. And I can see why some people might be intrigued to pursue a For Sale By Owner scenario. But finding interested buyers is only getting to First Base. A professional Realtor will help you get to Home Plate and close the deal ON TIME, the very first time.
Getting To The Closing Table Takes Skill
Here is what a Realtor can do for you:
- Negotiating – A Realtor can negotiate your best price without emotions.
- Inspections – They can handle the inspection and conduct unemotional repair negotiations.
- Buyer’s Lender – A buyer's lender will talk to a Realtor, but not a Seller. A Realtor can monitor the loan process.
- Appraisal – A Realtor knows how to contact the appraiser and can help them with the right information. A Seller cannot have this communication with an appraiser.
- The Buyer – A buyer can get skittish and back out. This could cost you one or two months of holding costs.
- Survey & Title - Finally, if there are any survey or title issues, experience pays off in resolving these.
Not convinced just yet? Read The Case Study Below.
For Sale by Owner Case Study:
Dan and Carol Selner: 108 Edgewater, Sold March 29, 2021
- For Sale By Owner, listed for $559,000.
- After several weeks no response, only negative feedback from people saying the home was priced too high.
- After 1 month they added new professional photos.
- After 6 weeks they reduced to $529,000.
- After 2 months they received an offer with contingency to sell for $515,000.
Then they contacted me out of frustration. They were listed in 1 week and under contract in a few days. We got multiple offers and closed in 3 weeks. They saved one month's worth of holding costs and they SOLD for $22,360 over asking.
Listed for $559,000. Sold for $581.360. Let that sink in.
The net was higher after commission than it would have been when it was a For Sale by Owner! The seller was very happy and enjoyed a no-hassle, stress-free, no-scam, no-liability experience that saved them time and money!
Even better, they are happy to take your call should you like to speak with them about their story directly. I would be glad to connect you!
Also, I am always available to answer any questions or concerns you might have regarding any of your Grand County real estate needs, so please don’t hesitate to call.
Have a Grand day!
Brenda Freeman | Broker Associate | CRS, GRI, MNCE
LIV Sotheby’s International Realty
78977 US HWY 40 | Winter Park, CO 80482
[email protected]
Direct: 970.531.6841 |
Office: 1101 Grand Ave Suite 3 | Grand Lake, CO 80447
Specializing in the Three Lakes Area
“Integrity is the most valuable and respected quality of leadership. Always keep your word.” -Brian Tracy
