For sale by owner – or FSBO – can seem like a great way to sell your home and save some cash on commission. But going the FSBO route isn’t always the easiest and can come with some issues you should know about.
Real Estate is a Full-Time Job
If you’re doing FSBO and want to sell your home within a certain timeline, you need to make it your full-time job. That means if you have a separate job, you’ll be rushing home from work to show your house to a potential buyer, excusing yourself from meetings to take calls with buyers, and spending hours working on selling your home after spending a long day at work. Not to mention, you need to be an expert in marketing homes. Do you have a professional photographer, videographer, and home stager ready to assist you?
It sounds like a lot because it is a lot. Unless you can dedicate your full time to selling your home, it can be a lot for you to take on alone and be a stressful experience.
FSBO scams can happen to both sellers and buyers with little recourse. Some common scams include fraudulent papers, foreign buyer deposits, and getting your personal information. When not working with a real estate agent, it’s vital to double-check deposits, paperwork, and purchases through third parties. Without assistance from a real estate agent, you can become an easy target and potentially lose hundreds or even thousands of dollars.
Liability is on You
A lot of paperwork is involved with selling a home, and if you don’t do it correctly, you can get into big trouble. If you don’t disclose everything properly, you can be held liable for fraud, negligence, or breach of contract. Even something as small as listing hardwood floors in your home when they’re actually wood laminate can mean you have to pay for your mistake.
Agents aren’t perfect, they can make mistakes too. However, they have professional errors and omissions insurance to protect themselves and give the buyers recourse so the buyer may not need to pursue the seller for damages.
FSBOs Sell for Less
Saving money on realtor fees is a popular reason sellers choose FSBO. It can seem like if you sell yourself, you’ll be making more money since you’ll save on commission fees. However, what FSBO sellers save on commission they’ll lose in terms of lower sale price and other costs they may not have factored in. From the National Association of Realtors, in 2020 the typical FSBO home sold for $217,900 compared to $295,000 for agent-assisted home sales.
Find Your Best Option
We can’t tell you what the best route for you to take when it comes to selling your home. However, we can say that selling your home is one of the biggest transactions of your life. If you ever need help with the home selling process, we’d love to be there to give our expert opinion and help you out.
At Crowe Realty, you can rest assured that all of our agents are committed to excellence and will do what it takes to help you sell your home. We’re happy to help and guide you through the entire process in the Montrose, Colorado area.