Coldwell Banker®
Understanding the Limitations of “For Sale By Owner”
Understanding the Limitations of “For Sale By Owner”
Trying to sell your home on your own means trying to do by yourself what professional brokerages like Coldwell Banker® do everyday
- Price & position your property in the marketplace
- Professionally market your home online, direct to buyers and extensively to the network of local real estate professionals
- Manage showings, meet buyers, conduct open houses
- Handle paperwork, disclosures and other legal issues
- Help potential buyers obtain financing
What sellers who sold on their own did not realize…
- 49% of sellers who sold their own home say they “did not want to pay a commission” or fee.
- Other reasons included:
- 26% sold their home to a friend or relative
- 11% were contacted directly by a buyer
- 4% did not want to deal with an agent
- Selling your own home usually does not result in the best price:
- The median selling price of FSBO homes was $172,000 compared with $215,000 for agent-assisted home sales. Sellers who “did it themselves” realized a 20% lower sales price.
- For Sale By Owners are not marketing professionals. They frequently use the least effective and most costly methods to attract buyers, including:
- 44% relied upon yard signs
- 22% placed newspaper ads
- 15% effectively conducted open houses
- Only 25% put their listing on the internet
- 3% could send direct mail to a database of prospective buyers
- Many FSBOs are not prepared for the complexities of the real estate transaction. As a result, they often lose potential buyers and valuable market time.
- They may also face certain risks with respect to paperwork and legal issues.
- 15% said they understood the paperwork involved
- 15% said they were able to set the right price in the marketplace
- Only 5% could help buyers obtain financing
- 13% said they sold within the length of time they had planned on
- 5% said they had enough time to devote to all aspects of the sale