Defining FSBO (For Sale By Owner)

Dated: 10/01/2019

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When it comes to homeowners making the decision to put up their home for sale in Houston by themselves, this is typically the result of two different reasons: an overall lack of home inventory in the current market, as well as the rising costs of homes themselves. With that being said, however, a For Sale By Owner, or FSBO for short, generally may not be a good thing to consider for those who are considering selling.

Here are four important reasons why this is typically the case.

People search on the internet.

According to some of the most recent studies, approximately 95% of home buyers use the internet to search for a home for sale in Houston. Alternatively, 13% refer to printed newspaper advertisements to rely on their searches. When it comes to real estate agents, these individuals tend to use the internet as well in order to help sell homes for those who are looking to sell.

In terms of those who are seeking to purchase a home, statistics reveal the following information: 50% have found their homes via the internet, 7% have found their homes thanks to a yard sign, 28% were able to find their homes thanks to assistance from a trusted real estate agent, and only 1% had luck thanks to an actual newspaper.

You need to be able to negotiate with multiple roles.

Those who decide to rely on a FSBO should be prepared to negotiate with a whole list of different individuals, such as the buyer, the buyer’s agent, the buyer’s attorney, home inspection companies, and the appraiser.

There are a lot of requirements to a home for sale in Houston.

When it comes to utilizing a FSBO, the overall process involved in terms of paperwork has seen a dramatic increase thanks in large part to both regulations and disclosures becoming much more mandatory. Because of this, those who rely on FSBO have decreased from 19% to only 7% within the span of over 20 years.

Commission doesn’t make a difference.

A majority of homeowners are under the impression that they will end up saving the real estate commission if they choose to sell their homes on their own. On the contrary, the realization is that the biggest reason many buyers look at a FSBO is because they too are under the impression that they will be able to save commission for the real estate agent. Unfortunately, this is never the case whatsoever.

Collateral Analytics recently conducted a study, which reveals that a FSBO never actually saves anything just because someone doesn’t take advantage of the services of a real estate agent. In fact, many times, it can actually cost someone more if they don’t use those services.

All in all, the more people that look at a home who are interested in purchasing it, the more chances there will be that those same people will begin bidding on it until the sale becomes finalized. The same study that was conducted also found that the overall difference in price between homes of the same size and location currently stands at a 6% average.

Prior to accepting the challenge of attempting to sell your home on your own, it’s important to take the time to meet with an experienced real estate agent in order to discuss all of your specific needs. If you’re looking for a realtor in Houston, contact The Murray Group to meet with the best.

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Wayne Murray

Presenting Wayne Murray, President of WEICHERT, REALTORS® - Wayne Murray Properties Wayne Murray is President of the leadership team and owner of WEICHERT, REALTORS® - Wayne Murray Properties. ....

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