Disadvantages of “For Sale by Owner”

May 10, 2017

In the hopes of saving money, many sellers opt to sell their homes by themselves without enlisting the help of an experienced South Florida real estate professional. Despite all the tools that make “For Sale by Owner” (FSBO) sales possible, working without an agent can lead to costly disadvantages.

Property Gets Less Exposure

Sellers who do not work with a licensed South Florida real estate professional cannot have their properties listed on the MLS (multiple listing service), the major online tool that agents use to not only list properties for sale, but also find properties for their clients to buy. Since most buyers work with a real estate professional when searching for homes, FSBO listings may never be brought to their attention.

Also, a South Florida real estate professional is skilled at utilizing promotional materials and marketing to advertise a property to a wider audience which may not have been reached without such expertise.

Imperfect Sale Price & Buyers

Another weakness of the FSBO approach is that sellers are likely to set an incorrect sale price on their property. Sellers, who are attached to their home, will base the price on how much they “feel” their home is worth, which may result in overpricing. A qualified South Florida real estate professional will have access to market conditions and data on comparable sales in the area. Then, they will use that information to objectively recommend a fair and reasonable sale price.

Additionally, FSBO listings tend to attract unqualified buyers looking for a “bargain.” Without an agent experienced at sifting out buyers that are unqualified or not serious about purchasing the property, sellers could end up catering to these problematic buyers and risk selling their home for much less than its worth.

Risk of Legal Troubles

Selling a property is a complex process that entails a lot negotiation, paperwork, and legal issues. Sellers not represented by agents risk violating guidelines and requirements when preparing all the legal documents and disclosures, making them vulnerable to legal and financial liability. A knowledgeable South Florida real estate professional is familiar with properly addressing all the legalities involved in the selling of a home, ensuring a smooth transaction from start to finish.

For sellers considering the FSBO approach to save money, an important thing to note is that an agent’s commission is usually rolled into the sale price, which means it gets paid by the buyer not the seller. With that in mind, plus all the advantages of working with a South Florida real estate professional mentioned above, those planning to sell their home should call the real estate family at Stein Posner today.