Thursday, December 12, 2019 / by Andria Sanchez
You can, but is it a good idea? Not without a real estate agent.
In today’s market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own on Zillow, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.
1. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner on Zillow:
The buyer who wants the best deal possible
The buyer’s agent who solely represents the best interest of the buyer
The buyer’s attorney (in some parts of the country)
The home inspection companies, which work for the buyer and will almost always find some problems with the house
The appraiser if there is a question of value
2. You need a ‘Sherpa.’ You need an expert who understands what is happening in the market and why it is happening. You need someone who can simply and effectively explain it to you and your family. You need an expert who will guarantee that you make the right decision, even in these challenging times.
Dave Ramsey, the financial guru, advises:
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher.”
An agent with the heart of a teacher will help you if you are new to the home selling process, an experienced real estate professional can explain exactly what to expect during the entire transaction so you aren’t caught off guard, like listing your home FSBO above market value price, only to receive a low appraisal in the end, which can stop a home sale dead in its tracks. They can also help you in many other ways, whether it’s pointing out possible uses for an extra bedroom/office, or using their trained eye to see potentially disastrous hazards that may be hiding out of site, that may eventually surface within the transaction process. Your agent is there to protect your interests and make sure your home selling experience is a good one.
3. Exposure to Prospective Purchasers
Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. While Zillow will get give your home some exposure, Haven Real Estate agents have a marketing internet strategy, within Zillow to promote the sale of your home above and beyond other homes for sale on Zillow. Also, nearly 90% of active homebuyers are working with an agent. Many buyer’s agents avoid showing FSBO properties to their clients because they know there isn’t a professional on the other side of the transaction.
4. FSBOing has Become More and More Difficult
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
5. You Net More Money when Using an Agent
Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.
Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.
Before you decide to take on the challenges of selling your house on your own on Zillow, call Andria at Haven Real Estate Group, let’s get together and discuss the many benefits of using a Haven Agent.
Andria Sanchez- Haven Real Estate Group