The Hidden Horrors of Going FSBO (For Sale by Owner)

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piggy bank surrounded by coinsMany home sellers have considered skipping the real estate agent to save on closing costs, but very few have actually succeeded in seeing those savings. There’s a good reason: the average homeowner doesn’t have the rigorous training and real estate knowledge that a licensed agent does.

But just what makes For Sale By Owner (FSBO) such a bad idea? From incessant inconveniences to costly paperwork mistakes, here are a few of the horror stories that FSBO sellers inevitably encounter.

The Daunting Task of Marketing Your Home

It takes more than a “For Sale” sign in your front yard to make buyers notice your home. According to the National Association of Realtors, 95% of buyers use the Internet in their home search.

This means that online marketing — starting with listing your home on the local listings database, sharing your listing to dozens of social media platforms, and advertising your listing on numerous websites with a global audience — is essential to selling your home.

Without an Agent, Home Marketing Isn’t Cheap

This is where it gets expensive: yard signs, newspaper ads, brochures, high-quality photographs, and a professional-looking website — things real estate agents have at their disposal — are your responsibility to finance and maintain when you have to do your home’s marketing yourself.

Incorrect Home Pricing: The Ghosts of Lost Profits

chart of fluctuating home valuesEven after all that marketing, FSBO sellers don’t actually make more money. In fact, many lose money.

The research backs it up: the National Association of Realtors reports that the average home sold with an agent sells for $240,000. FSBO homes, however, sell for only $185,000. What you could save in commission you lose by pricing your home incorrectly or skimping on the marketing.

Without an Agent, Finding the Right Price is Impossible

Part of the problem with a low-dollar sale is the asking price. Real estate agents have more tools and resources, plus an intimate knowledge of the local housing market, so they can spot a wrongly priced listing from a mile away. FSBO sellers, however, have only limited access to home value tools and resources about past sales activity.

The Mountains of Paperwork

stacks of papers in bindersUnderstanding the paperwork involved in a real estate transaction is one of the biggest challenges of selling For Sale By Owner.

After all, the contract isn’t just an agreement about the price; it also includes contingencies (like those for home inspections and financing), the closing date, and other important terms.

Without an Agent, Sellers Can Make Costly Mistakes

The paperwork involved in a home sale can be complicated and full of legal jargon. An oversight could mean a costly mistake or even a lawsuit. Real estate agents, however, have the knowledge and understanding to take care of all the necessary disclosures.

Don’t Become the Next FSBO Horror Story

Sign that says For Sale By OwnerYes, commission is a sizable chunk of change. But so are the hidden fees and lost profits, not to mention the added stress, that come with selling a home by yourself. The best way to save money, save time, and save headaches is to work with an experienced real estate professional.

We’re here to help! Give us a call and let’s talk about the home selling process.

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6 Reasons Why Owning a Home is Awesome

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From personalizing your living spaces to turning a profit when you sell, there are dozens of reasons why first-time home buyers can’t wait to find a home and make it their own. Though there are plenty of benefits of owning a home, here are the six benefits that stand out from the rest.

decorated room in a home

1. You Can Customize Your Space

Whether you want to invest in the latest high-tech home features or paint your walls neon green, owning a home gives you the freedom to do just about anything you want.

cute dog in a backyard

2. You Make the Rules

Unlike with a rental property, where a landlord can dictate what you can and can’t do while living there, living in your own home means you have the freedom to host parties, adopt a pet, plant a garden, you name it. As a homeowner, you are in total control!

calculator next to accounting sheet

3. You Can Take Advantage of Tax Breaks

It’s true what they say: owning a home is an investment. But that doesn’t mean there aren’t ways that you can reap financial rewards up front. The IRS allows homeowners to deduct mortgage interest, property taxes, and capital gains from their annual taxes.

flowers in a street median

4. You Can Better Invest in Your Community

Eager to make friends with your neighbors? Want to participate in homeowners association meetings? Can’t wait to get involved with community beautification projects or local organizations? When you own a home, you can truly become an important part of the community.

cozy home

5. You Can Put Down Roots

Speaking of getting involved in your community, owning a home also allows you to settle down and establish roots in a home and neighborhood that you love.

increasing heights of coin stacks

6. You Can Earn Money Back When You Sell Your Home

The longer you live in your home, the more equity you build. And if the homes in your neighborhood are appreciating in value, you can earn a significant amount of money back when you decide to sell your home — maybe even thousands of dollars!

Want to Own a Home of Your Own? We Can Help!

Homeownership is a rewarding experience, especially if you have the right tools and resources at your fingertips. If you’re considering buying your first home, give us a call and let’s talk about your plans!

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