While ‘For Sale by Owner’ may be the best approach for some, it has some significant drawbacks which preclude most people from even considering it.

Here are some factors to consider before tackling the sale of your home yourself:

1. Lack of Consumer Protection and Liability

Probably the most serious drawback of a For Sale by Owner is the lack of protection for both the Seller and the Buyer. As realtors we carry Errors and Omissions insurance to protect not only ourselves but also our Sellers and Buyers. If you are selling your house yourself for example and you mistakenly make an error on the square footage of the property or some other detail, you may subsequently get sued by the Buyer and you have no protection. A single mistake could end up costing you far more than a Real Estate commission.

2. Limited Marketing Exposure

When selling a home yourself you greatly limit your exposure to potential Buyers. Statistics showthat you will reach less than 10% of your target market compared to what a Realtor can generate. For Sale by Owner web sites are tricky to navigate through and to find houses matching your specific criteria. It could take you a day of research to find houses that are suitable for you vs. any Realtor that can go to their MLS system and produce a list of homes matching the same criteria in a few minutes.

3.Missing Out On People Who Are Working With A Buyer Agent

Because it is easier and more efficient, most Buyers will use a Realtor and most Realtors do not take their clients to For Sale by Owners; thus, most potential Buyers will never even see your house if it’s listed For Sale By Owner. The attractiveness to a Buyer working with a Realtor is that the home seller pays the commission yet they get expert advice and proper guidance through the whole home buying process and all the benefits of working in an agency relationship.

4. People Find It Awkward to Deal With Homeowners Directly

Most Buyers find it extremely awkward to negotiate or even talk directly with the Sellers and therefore avoid For Sale By Owner properties. Most Buyers and agents prefer to view a home without the homeowner present. This increases their comfort level which allows them to enter the home more relaxed and with a more open mindset enabling them to focus on the house they are viewing and not on where the homeowner is at any moment.

5. Can You Generate Qualified Leads For the Sale of Your Home

Most Realtors will ensure that their prospective Buyers have been properly pre-approved for mortgage financing before they enter the marketplace to look for a home. When you are selling a home yourself you do not know anything about the prospective Buyers coming to view your home. A great deal of headaches and complications may arise if you end up writing a deal with persons who simply cannot afford your home.

6. Can You Effectively Price The Home

Without the detailed information that Realtors have access to with regards to current housing inventory and empirical sales, it is very difficult for a For Sale By Owner to arrive at the right list price for their home. The result is that many For Sale By Owner listings are not priced properly and this can cost you money.

7. Expected Discount On Purchase

Potential Buyers dealing with a house listed by a homeowner reasonably expect to be buy the home at a discount due to the added risk inherent in dealing with the homeowner directly and also to capture some of the savings involved in the situation by not having a Realtor involved.

8. You Only Pay a Realtor If Your Home Sells

If you work with a Realtor you only pay them their commission up on the successful sale of your home. Not only do you get to chose from an experienced array of professionals providing years of experience, access to the MLS, access to high level marketing programs and the latest technology but you also don’t have to pay them unless the home is SOLD. Using a Realtor should save you time and money and make the whole sales process as smooth as possible allowing you the peace of mind that comes with having a professional in your corner.

Fact: 8 out of 10 For Sale By Owners end up using a Realtor!!

Call Geoff Smith Today for more information.