Selling your home can be an exciting experience. And, depending on how you choose to do it, it can also become stressful and expensive. One of the first decisions you’ll need to make is whether to hire a real estate agent or try to sell your home on your own. In the real estate business, For Sale by Owner or FSBO (pronounced “fiz-bo”) is when the owner of a house sells it on their own—without any representation from a real estate agent. You may have even seen yard signs with those exact words: “For Sale by Owner.”
While a for sale by owner (FSBO) listing may seem like a good idea to save money on real estate commissions, the truth is that selling your home yourself can be a complicated and expensive process.
In this article, we’ll explore the truth about using a for-sale-by-owner listing to sell your house in Surprise. We’ll also discuss why a direct sale may be a better option.
The Challenges of a For Sale By Owner Listing
The Lack of Knowledge and Expertise
One of the biggest challenges of a for-sale-by-owner listing is the lack of expertise and knowledge about all of the complicated details that have to take place in order to market, show and sell your home. An experienced real estate agent is an expert at handling such details so when you hire one, all of the details get handled automatically. Selling your home requires a lot of paperwork, marketing, and negotiations, and without the guidance of a professional, you may end up making costly mistakes.
Handling all of the Details
Additionally, selling your home on your own in Surprise means that you’ll need to handle all aspects of the sale, including knowing what other similar homes are selling for in your area, knowing how to price it right, scheduling showings, negotiating offers, and managing the closing process. This can be a time-consuming and stressful experience, especially if you’re not familiar with the real estate industry. This isn’t an area where it is ok to make mistakes.
Finding the Right Buyers
Another challenge of a for sale by owner listing in Surprise is that it can be difficult to attract qualified buyers unless you know how to market. Unless you live on a busy street where your for sale by owner sign can be seen by many people every day, you just won’t get the visibility you need with simply a for sale sign. To get in front of potential buyers, you’ll often need the marketing resources and network of a real estate agent. If you don’t have them, then it can lead to a slow and frustrating selling process, with your home sitting on the market for months without any offers.
The Costs of a For Sale By Owner Listing
Contrary to popular belief, a for sale by owner listing may not save you money in the long run. While you won’t have to pay a real estate agent commission, you’ll still be responsible for other costs associated with selling your home. In addition, many buyers think they can offer you a lower price because you don’t have an agent representing you. And, if you find a buyer who has an agent, you’ll still need to pay for the buyer agent’s commission. Last year, less than 1 in 10 home sellers went the FSBO route and sold their homes at a median price that was 11% less than those who sold with a real estate agent.
Marketing Materials
For example, you’ll need to pay for marketing materials such as flyers, signs, and online listings. You may also need to hire a professional photographer or stager to help you showcase your home in the best possible light. A home photographer can be a specialized skill. You won’t be able to use even the most expensive and up to date mobile phones to capture in brilliant photo from what someone who specializes in home photography can. Staging is also a specialty skill. A good stager has a good eye really knows how to “merchandize” your home in the best possible light for potential buyers.
Legal & Title Fees
Additionally, if you’re not familiar with the legal requirements of selling a home in Arizona, you may need to hire an attorney or an Escrow professional who can masterfully navigate and coordinate the closing process.
Your Time
Your time is valuable. Handling all of the things that go into selling a home in Surprise can take a considerable amount of time, especially if you don’t have experience in the real estate industry.
All of these costs can add up quickly, making a for sale by owner listing more expensive than you originally anticipated.
Why People Choose Doing For Sale By Owner In Spite of the Challenges
To Cut Out the Agent’s Commission
Home sellers hoping to sell their house for the best price might think they can save money by avoiding the commission fee they’d pay to a real estate agent. But remember, an agent who eats, sleeps and breathes real estate will be able to help them sell their home for tens of thousands of dollars more than they could by selling FSBO. And let’s not forget that even after the average agent commission, is paid, home sellers still walk away with more money than they could’ve by going the FSBO route.
You Already Have a Buyer Lined Up
A home seller might have a buyer already lined up and don’t think tjey need a real estate agent. Maybe they’ve agreed upon the purchase price and think they’ve just got the inspections, appraisals and paperwork to complete. (That’s still a lot of stuff left to do!)
But things can and do go wrong when selling a house—even if the paperwork part is a breeze (which it usually never is). With no agent to safeguard the legal liabilities, home sellers are on their own if the deal falls through.
To Speed Up the House Sale
FSBO homes do have a track record of selling faster than agent-assisted homes. In fact, most FSBO homes sold a week faster than agent-assisted homes last year—keep in mind, most of those FSBO homes sold to a buyer who the seller already knew. So FSBO might speed up your sale if you have a buyer lined up. But is that really worth selling it for way less money?
You Think It’s an Easy Job
Home sellers might believe the real estate business looks pretty easy. They may feel confident about pricing their home, taking a few pictures, getting it on the market, and finding a buyer. The truth is they probably don’t know as much about real estate as an agent who does this day in and day out. And that means it’ll be way too easy to make major home-selling mistakes.
Why a Direct Sale May Be a Better Option
If you’re looking for a hassle-free and cost-effective way to sell your home in Surprise, a direct sale may be a better option. A direct sale, also known as a cash sale, is when you sell your home directly to a real estate investor or company without the need for a real estate agent.
There are several benefits of a direct sale, including:
1. Quick and easy process: A direct sale can be completed in as little as a week, compared to the months it can take to sell a home through a for sale by owner listing.
2. No need for repairs or renovations: When you sell your home through a direct sale, you won’t need to make any repairs or renovations. The investor will buy your home as-is, saving you time and money.
3. No marketing or paperwork: Since you won’t be listing your home on the market, you won’t need to worry about marketing or paperwork. The investor will handle all aspects of the sale, including the closing process.
4. No commissions or fees: When you sell your home through a direct sale, you won’t need to pay any real estate commissions or fees. The investor will make you a cash offer based on the current market value of your home.
5. Direct buyers can also offer a variety of creative buying solutions to get you out of a jam if you need to sell your house fast.
While a for-sale-by-owner listing in Surprise may seem like a good idea to save money on real estate commissions, the truth is that it can be a complicated and expensive process. By selling your home through a direct sale, to an investor, you can avoid the challenges and costs associated with a for-sale-by-owner listing. If you’re interested in selling your home in Surprise through a direct sale, be sure to do your research and work with a reputable and experienced real estate investor or company. With the right partner, you can sell your home quickly, easily, and for a fair price.
Do you have a house you need to sell in Surprise? We’d be happy to make you a fair and straightforward offer, free of any cost or obligation. Give us a call today to learn more! (928) 421-2678 and (928) 239-7573