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Elizabeth Stone

13 Reasons Why For Sale By Owner (FSBO) Can Be Worse Than Foreclosure


1. The liability is often not limited to the value of the home:

In the case of false advertising, the liability is not limited to the value of the product. This is because the buyer can claim an opportunity cost associated with the purchase as well as that he or she has been promised a certain return on their purchase. The liability can be as high as 300% of the purchase price thus becoming an unbearable amount of incurred debt for someone trying to sell a home all by themselves.

2. You’re not saving money:

While it may seem like you’re pinching pennies by cutting out the Realtor from the selling process, that is not actually the case. Professional agents do help in finding the best deal possible.

3. Scams are more common:

When you are selling a home by yourself, it might be hard to spot warning signs of potential scams. Realtors will be able to spot these for you.

4. You’ll save time:

The process of selling a house takes a lot of time and energy. Hiring an agent will save you a lot of precious time and stress throughout the process.

5. You may end up resorting to an agent anyway:

Many For Sale By Owner situations turn into agent-seller transactions anyway. FSBO clients are more than likely to inevitably realize how difficult the process is and eventually seek out help before they are able to close a deal.

6. You may not be aware of the ins and outs:

It makes sense that people seeking to sell their homes may not be aware of all the details that go into it. It is much harder for clients to research the procedure on their own than it would be to simply hire a trained agent.

7. Paperwork may be troublesome:

If paperwork is not properly filled out, it may cause a potential lawsuit on the seller’s part. Without any loopholes at all, a buyer may be able to legally target the FSBO seller.

8. You may not be well-versed in inspections:

Inspections are an important part of selling a home, and someone trying to sell their home themselves may not be equipped to handle them. There is a lot that goes into home inspection, and only an agent can make sure it is done efficiently.

9. There isn’t any marketing:

When hiring a Realtor, homes are able to be marketed across various real estate platforms and thus sold faster. FSBO does not allow for any marketing strategies, and it results in homes not getting sold as quickly as they would otherwise.

10. You’re not going to get any representation:

Many people who are selling homes are drawn to big-name Realtors whom they feel they can trust. With FSBO, home buyers do not have that same security and therefore may be less willing to consider buying the home.

11. Buyers want the best deal imaginable:

Home buyers are looking for the most affordable option when searching for a home, and chances are FSBO is not the cheapest choice. Only an agent will be able to provide a fair, affordable deal for all parties involved.

12. Each party will benefit:

Both sellers and agents net more money when selling through a Realtor than through FSBO. At the end of the day, it is the most obvious choice for that very reason. Although it makes more sense to cut out the middlemen, hiring a trained agent will help save time, money, and energy in the long run – meanwhile helping you get the best bargain for your house.

13. Agents know what they’re doing:

Agents can not only save sellers’ time, money, and headaches but also prevent them from incurring liability that oftentimes can exceed the property net value.

This article is courtesy of Elizabeth Stone and found at: https://realtyleadership.com/13-reasons-sale-owner-fsbo-can-worse-foreclosure/


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