For Sale By Owner
Have you ever wondered why only 16% of all homes put on the market each year are listed as "For Sale By Owner" (FSBO)? Wouldn't you think that more people in the Pittsburgh area would sell their own homes so that they could save money on brokerage fees?
Believe it or not, selling your home without the help of an agent can come with consequences. Only 3 out of every 10 FSBO sellers said they would sell by themselves again, and statistics show the average sale price of a FSBO home is less than a home sold by an agent.
If you're thinking about selling your own home, let's look at some of the benefits and drawbacks of going the FSBO path.
What Is the Major Perceived Benefit of Selling Your Pittsburgh Area Home FSBO?
The major perceived benefit of selling your home yourself is that you will save on brokerage fees that you would pay if you chose to work with a professional realtor. Many homeowners who choose to sell "By Owner" are hoping to make a little more money on their home sale by choosing not to use the services of a realtor. In theory, this seems like a good idea. How can you argue with the idea of saving a few thousand dollars on commissions, right? How difficult can it be to sell a home, especially in today's market?
You might be surprised, however, to learn that many FSBO sellers actually make less money on their home sale than if they'd worked with an experienced professional realtor. FSBO sellers quickly learn that the demands on their time, their lack of experience, and their inability to negotiate the fast-paced landscape of home sales might leave them with more stress and less money in their pockets than if they'd just paid the brokerage fees in the first place.
Time and time again, once the reality of their situation sinks in, we see many FSBOs wishing they would have secured the services of trained professionals from the start.
What Can a Realtor Bring to the Table That a FSBO Can't?
Many FSBOs feel that they can bring all the same things to the home selling experience as a realtor. The reality, however, is that this is just not simply possible. For example, when a single realtor lists their properties with the Multiple Listing Service (MLS), thousands of realtors see the listing. When a FSBO lists their property with a sign in the front yard or in the local classifieds, the number of prospective customers dwindle significantly.
What Does a Realtor Do to Earn Their Commission?
Many FSBOs simply do not understand what a real estate professional does to earn their commission. Making sure that your real estate agent is doing everything you deserve to make your home selling experience as great as possible is important. The first step toward making this a reality is knowing what a realtor is supposed to be doing for you as the home seller. Here is just a small sampling of the common tasks that a realtor will perform for the seller:
- Assist the home seller in setting the best price for their home.
- Make sure that all the paperwork is filled out and delivered appropriately and on time.
- Attract qualified buyers to view and bid on the home.
- Market the home to prospective buyers using his experience and skills as a professional salesperson.
- Help the seller navigate and understand all the financial aspects of the transaction.
- And, ultimately, do everything in their power to make sure that the seller comes out with the highest sales price and the least amount of stress and worry.
For most people, when they truly understand all of the benefits of working with a realtor, they are glad to pay the commissions that the realtor earns through his hard work and dedication to your home sale. FSBO can and does work, but with a decision as important as selling your home, why risk your peace of mind, your bank account, and your future just to try and save a few extra bucks?
Call The Jim Dolanch Team and schedule an appointment for a free home evaluation. Your Pittsburgh real estate experts would be happy to list your home on the Pennsylvania MLS and have your home get the exposure it deserves in the Pittsburgh real estate market!