Choosing to go the route of FSBO carries several risks. Read on for the most common mistakes that are made and how to avoid them!
One of the reasons that homeowners commonly decide to sell on their own is to save on Realtor commission fees. However, selling on your own may actually cost you the money you are attempting to save and more. Read on for a few common mistakes that are made when doing a FSBO and how to avoid them.
Common Mistakes
- Wrong Price: Pricing a home too high can turn buyers off and just make other competing homes look like a better value. In this case, your home may sit on the market and you may be forced to do price reductions. If you price a home too low, then you run the risk of leaving money on the table. It’s important to keep in mind that sites like Zillow are not a reliable source for accurately pricing your home. It’s also not as cut and dry as simply looking at what other homes around you are listed/sold for. Some of those homes may be foreclosures or short sales or they may simply be priced incorrectly.
A good way to determine your list price is to look at the recently sold comps on the MLS. Keep in mind that if you price your home just slightly lower than market value, you may draw a lot of buyer attention. This could lead to a bidding war for your home, thus increasing the sales price of your home.
- Lack of Marketing: Having your home on the MLS is a huge benefit and can greatly increase the chances of getting it sold. The MLS is also what other home sites such as Realtor.com use to get homes for their sites. Realtors work to get your home marketed and seen by as many potential buyers as possible. If you decide to sell on your own, it will be difficult to get your home marketed like it would if you were represented by a Realtor. If you do sell on your own, you may be able to get your home listed on the MLS for a fee.
- Complicated Process: Going through a home transaction smoothly is something that a good Realtor can do. The process of selling a home is not simple. In fact, an honest mistake such as checking an incorrect box on a contract can cost you thousands of dollars. Having an agent to complete the process for you and answer any questions that you may have is important. If you do choose to FSBO, consider at least hiring a Real Estate attorney to look over the contract for you.