Agents can save sellers time, money, liability and hassle
For Sale By Owner (FSBO) transactions are more costly than homeowners realize, they are complicated transactions that can put both buyers and sellers at risk. FSBOs take longer to sell costing sellers both time and money. Here are 11 reasons why for sale by owner is a terrible idea. Read full article.
1. Scams happen
FSBO scams happen to both buyers and sellers with
little recourse besides hiring an attorney.
Common scams include fraudulent papers, foreign buyer, purchases through
a third-party and asking for personal information.
2. Liability is
all on the seller
Let’s face it: this is a litigious society, so what homeowner
wants to be a target for lawsuits?
Everyone
makes mistakes. Licensed agents carry errors and omissions (E&O)
insurance to protect against those mistakes.
3. Paperwork is
daunting
The 2015 National Association of Realtors’ Profile of Home
Buyers and Sellers showed that understanding paperwork was one of the
most difficult tasks for FSBOs.
4. Sellers can
get stuck in a bad deal
FSBOs that sign on the dotted line and then realize an error
are stuck. They have to pay the buyer to get out of or just take the deal.
5. FSBOs sell
for less
In 2015, FSBOs lost about 16 percent of the sales price
with a median selling price of $210,000 (agent-assisted homes sold for
$249,000).
6. FSBOs spend
more time on the market
Unless the seller knows someone who wants to buy the home,
FSBOs take longer to sell than homes listed with an agent. For the same
reasons, they can’t get the right selling price.
7. FSBOs lack
representation
There’s no one looking out for the homeowners who sell on
their own. They have no one to call if they have a problem or a question.
8. Inspections
are problematic
Sellers who don’t know the rules can get stuck with
unnecessary and costly repairs.
9. Marketing is
limited
FSBOs have limited resources to market their home.
10. Hidden costs
add up
The mindset for most FSBOs is saving money. Chances are,
these sellers are being nickeled and dimed into a pretty big chunk of change.
They’re paying for a lot of extras: signage, flyers,
photography, MLS listing, attorney (required in multiple states for FSBOs),
home warranty (optional but hard to sell without one), home inspection, a wood
destroying pest inspection, credit report for buyers (if applicable), contracts
and the list goes on.
11. Time costs
the seller money
The biggest cost to a homeowner is their time. You might
hear the argument that it doesn’t take an agent that much time to sell a house.
And honestly, given the technology at our disposal, that’s true — to an extent.
But it will take a homeowner a whole lot longer. They don’t
have the expertise or the access to the resources agents have. What is their
own time worth to them? How much time will the seller spend researching the
market and contracts? Is the seller going to leave work to unlock the house
each time there’s a showing?
Call The Beatty McGovern Group
to find out what we do to put
more money in your pocket.
PAUL BEATTY
DACEY McGOVERN
- - - -
BROKER/PARTNER
KELLER WILLIAMS REALTY
- - - -
774.268.9012 | 617.312.2787
BEATTYMCGOVERN@KW.COM
WWW.BEATTYMCGOVERN.COM
- - - -
1600 FALMOUTH ROAD, SUITE #2
CENTERVILLE, MA 026323
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