If you’re looking at local homes that are on the market, perhaps to get insight for your own home sale, you may see some places marked “FSBO,” or for sale by the owner. This process is when homeowners decide to skip working with a real estate professional and go through the home-selling process themselves, from the legal aspects, to prepping the house, to interfacing with potential buyers. It may be tempting to do this and think you will save money, but the truth is that this is more trouble than it’s worth. Here’s why.
Time crunch: There’s a reason why the top realtor in Victoria, BC, has real estate as a full-time job. Selling a house requires a lot of work, from preparing it for sale, to marketing the home, to actually working with the buyers. All of this is a lot to juggle, especially for someone who is running a household, doing a job of their own, and trying to find a new place to live. It’s easy to get stressed and burn out when you realize how much work is involved.
Lack of expertise: Real estate professionals have years of relevant experience. Not only do they understand how the market works in general, but they also know your local market. This will impact the type of prospects they market your home to, the improvements they suggest you make, and a whole other set of considerations. This isn’t something that you can replicate and it may lead to hiccups along the way or you selling your home for less than what it’s worth.
Legal issues: Selling a home puts a lot of legal liability on the seller. Realtors know how to navigate this, but selling your home on your own blind could wind up with you in court. A lot of these issues tend to involve disclosing defects, and what you need to mention in formal writing to a potential buyer.
The money question: As we just mentioned, a big concern with selling your home is not being able to get as much as you have hoped. FSBO sales are naturally at risk for this because they don’t have the market knowledge and negotiating skills of a true professional. However, this also shoots down the largest benefit of going FSBO, saving money on the realtor’s commission. On paper, this sounds great. But if you lose money on the final sale, all you’re really doing is getting the same amount of money or even less, for a lot more work.
Some will argue the benefits of selling FSBO, and while they do technically exist, they are also likely minimal compared to the possible risks you incur. As a result, most homeowners should be looking for professional help to get their homes sold, like the top real estate agent in Victoria, BC. Their guidance will help you avoid some of the common issues that we’ve been covering. When you’re ready to get that next tier of support, be sure to reach out to our team.