Question:
“We need to net the most money from selling our current home to buy our next home. So we want to sell our home FSBO [for sale by owner] to save on the broker fee. What do you think?”
Answer:
I understand your concern about netting the most money from a sale. Given that that is your goal, consider:
- Many/most people who sell FSBO pay a buyer agent 3% anyway
- That buyer agent is negotiating AGAINST them
- The limited marketing available means less showings, less interest, a lower price, and a lower gain or even a loss
- That limited marketing makes multiple offers much less likely, losing a big opportunity for a higher price
- Are you comfortable negotiating face to face with a buyer?
- Many homebuyers go to unrepresented sellers so THEY can get a discounted price. Both parties can’t save the same $$.
- Do you know how to protect yourself from scams and people who prey on homesellers without representation?
- How will you know if your buyer is qualified? Many preapproval letters are worthless.
- Do you know how to coordinate selling your home and buying another?
- Do you know contracts (12+ pages), disclosures (20+ pages), real estate law, and real estate practice?
- Unfortunately, FSBOs attract constant calls from aggressive agents trying to “get your listing”many use clever canned scripts to get into your home and talk with you.
- You may have some concern about letting strangers without agents into your home.
- Are you comfortable with the legal risk of selling without a good broker protecting you?
- On average, FSBOs net a 0-1% saving. Is that worth all your time, extra work, and legal risk?
Perhaps the clearest evidence is this question:
“If selling without representation really netted people more, why wouldn’t everyone be doing it?”
I know I’ve hit you with a lot of information. But just think about it and you’ll agree with most or all of what I’m saying.
