FSBO: Penny Wise Or Pound Foolish?

I’m all about saving money.  If I can find a shirt or pair of pants for a deal, I’m in.  In fact I only look at the racks that say CLEARANCE or 50% OFF.  It was how I was raised.
So when people talk about selling their house without a Realtor. My first inclination is always, “why not?”  If you can save some money, it makes sense.  Or does it?
That discounted pair of pants I’m always looking for may cost me $30, so the risk is pretty low. Selling your house? A house that costs $100,000 to $500,000 or more may be a little different.  Think about it this way. If you were being sued for $100,000, would you represent yourself?  What about $50,000? I’m guessing your answer is, “no.”  So why would you take such a risk with your most expensive possession?
When you “For Sale by Owner” (FSBO), who is protecting your interests? Consider the following:

1. Most buyers are represented, so instead of saving the full commission, you are only saving half. Saving even half is great, but at what cost?
2. Because most buyers are represented, they are going to have the upperhand in negotiating both the offer and the inspection. More often than not, that experience will save you an equal or greater amount than you would have spent for that experience.
3. How does title insurance work? Why do you need it? And who do you call to get it?  An agent has the answers and the connections.
4. Every home seller in Indiana owes about one year’s worth of property taxes payable to the buyer at closing. While it is negotiable because home owners pay taxes in arears, it is standard that the seller credits the buyer those taxes that are coming due.
5. The seller has to be available to schedule showings and then let potential buyers in the home.  Not only is this an inconvenience but a potential safety risk. Also, buyers feel uncomfortable around the selling homeowner. The separation that an agent creates, provides comfort to the buyer, making it easier to present an offer for the home.
6. How does a seller know what the correct listing price is for their home?  Proper pricing is key to selling for the highest price in the shortest amount of time. Zillow’s Zestimate may be correct, but it can also be $10,000 to $20,000 off. Is that a risk worth taking?

If you are considering selling your home on your own, do youself a favor and give us a call at The Lugar Team (317-572-5033).  We’ll provide you with a no obligation consultaion about the current market and what it will cost to sell your home. We believe we can save you time, stress, and money. We’re here to serve you.

Posted on September 23, 2015 at 4:00 pm
Elisabeth Lugar | Category: Selling, The Real Estate Business

Leave a Reply

Your email address will not be published. Required fields are marked *