fsbo

You’ve been told before that selling your home “for sale by owner” or FSBO is a bad idea in a down market. So now that markets have improved, is it a better time to do so now? No, the same issues exist with FSBO in any market.

The Tampa market has definitely improved

That may mean some people think that it would be a good time to sell their homes themselves. They would be wrong.

The same reasons that make it a bad idea to sell FSBO in a down market are still the same in a good one. Do you have the time it takes to successfully market your home, hold open houses and make sure Realtors in the area are aware of your home for sale? Probably not.

Another of those reasons is especially important in this area: your listing not being seen by people from out of town. A lot of people looking for homes in this area are looking from out of the area. If they do see it somehow, their Realtor will be more likely to hesitate to work with a homeowner selling themselves.

“Save” the commission

Thinking that you will “save” the commission selling yourself, think again. The statistical reality is that you will get substantially less for the sale of your home.

According to a 2020 NAR Survey, the median selling price for a home sold with the assistance of a Realtor was $295,000 but the median sale for all FSBO homes was $217,000 last year.

So let’s do some math. The average commission is 6%. That means a home selling for the median, $249,000, would mean a commission of $14,940. The difference in the median Realtor assisted sale and the FSBO sale in the best circumstance is $39,000 and under the usual it goes to $97,100. The commission number is substantially lower than the difference in selling prices.

Find a Realtor instead of selling yourself. Your bank account will thank you.

People often wonder how long it takes to sell their home. If home sales are taking longer than they like in their area they often think they can do it better and faster by selling themselves. They would be wrong.

“How long will it take to sell my home?”

It is a common question: “how long will it take to sell my home?” Realtors can give a few different types of answers. One is average time on the market. But averages are really only useful for spotting market trends.

You can get a rough estimate of how long it will take to sell your home by taking a few factors into consideration and making a few assumptions. Basically, you need to assume that it takes about 20 prospective buyers touring your home. Then assume that it will take 2-3 offers before you actually get the house sold. It’s not foolproof, but it generally works.

So how does that translate to the time it takes to sell your home yourself? Well, that comes down to how effectively you get those 20+ prospective buyers through your door, and how well you negotiate the sale to get the 3+ offers. Easy peasy, right?

Do you know how to effectively market your home?

It’s not as easy as plunking a sign in the front yard, or throwing an ad up on the internet. You need to get the right attention from all over, not just your neighborhood. Do you know where to put your listing? Do you know what information to include to make it stand out from the rest?

Pricing your home

Then there’s how to price it. You just KNOW it’s worth a certain amount. It’s not. You are emotionally involved in the value of your home. It’s also not the average asking price of your neighbors. Asking and selling prices are two entirely different things, and your neighbor’s home may have amenities and upgrades that yours doesn’t.

Do you know how to sort through all those who respond to your ad or stop by because of your sign? How will you know if they are qualified to buy or not? Do you have hours to waste showing your home to people who can’t possibly buy it? Then there’s the question about whether you understand all the legal ins and outs of home sales.