Facts and Drawbacks about "For Sale By Owner"
Buying or selling a home may be the most important transaction of a lifetime. While some may think they can “go it alone” without the help of a licensed real estate professional, the risks may be too great. It takes market knowledge and expertise to complete a complex real estate transaction. It’s often an experience people find less than rewarding.
The numbers (if not the sellers) tell the story. According to the 2008 National Association of REALTORS® Profile of Home Buyers and Sellers:
- The median home price for sellers who use an agent ($211,000) was 40% higher than a home sold on the open-market by an owner ($150,100).
- Just 13% of recent sellers sold their home without professional representation. Only 7% of these sales were on the open market (cases where unrepresented sellers were selling to family, friends and neighbors account for 6% of all recent home sale activity).
Most difficult tasks for FSBO sellers were identified as:
- Setting the right price
- Selling within the length of time planned
- Preparing the home for sale
- Understanding and completing the paperwork
- Having enough time to devote to all aspects of the sale
As an expert in marketing and negotiation, your Illinois REALTOR®:
- Can help you set a realistic price and ensure the proper paperwork, various disclosures and inspections are handled correctly.
- Knows how to prepare a home for sale and show it more objectively than a seller who may be emotionally attached to the home.
- Can attract qualified buyers and provide broad exposure to the market. REALTORS® also are more likely to generate multiple bids than sellers can on their own.
In addition to today’s challenging marketplace, owners who try to sell their homes on their own face the increasing complexity of the transaction process:
- More disclosures and legal requirements than ever before
- Underestimating the amount of time required to market and show their property
- Dealing with security concerns about strangers having access to their home.