Selling a home can be a costly endeavor, and some may believe that listing a home as For Sale By Owner (FSBO) is a good idea to reduce costs and increase profit.
Unfortunately, this is a common misconception and statistics have shown that selling a home with a real estate agent’s help will actually result in a higher profit. In addition to increased profits, an agent will have invaluable knowledge of the real estate industry which will be beneficial throughout the process.
3 key costs and headaches of listing a home as FSBO instead of working with a real estate agent are:
- Listings Could Be Priced Wrong. Sellers don’t have the market knowledge that a real estate agent has. Even some research and online calculators will often not suffice for appropriately pricing a home in a specific market. Pricing the home incorrectly will eventually create a stigma around it if it’s on the market for too long. Consulting with an agent is the best way to get an accurate and realistic price.
- Marketing is Expensive. Many marketing tools that receive the most return on investment are at an agent’s disposal. Sellers who choose to do this themselves will typically rely on DIY internet marketing. These aren’t effective for reaching the largest audience.
- Paperwork Can Be Confusing. There are a lot of documents involved in selling a home, and a small mistake could create liability issues. Real estate agents are well-versed in all the complicated documents, disclosures and contracts required for the closing process. So working with one will reduce the risk of any oversights.
Listing a home as FSBO seems like a quicker or cheaper way to sell. But, ultimately it will put a lot of pressure on sellers and lead to potential errors with consequences. Instead, contact our team at The Cleveland Realty Group to work with expert real estate agents who always have your best interests in mind.