Thursday, February 25, 2021 / by Sam Gerardi
13 Reasons Why For Sale By Owner (FSBO) Can Be Worse Than Foreclosure
Even though foreclosure is one of the most catastrophic events any home owner can face, a For Sale By Owner (FSBO) can be much worse. With a foreclosure, the potential loss for a family is limited to their home or the amount owed to their lender, whereas an FSBO gone bad can leave a family in even bigger distress.
- The liability is often not limited to the value of the home:
In the case of false advertising, the liability is not limited to the value of the product. This is because the buyer can claim an opportunity cost associated with the purchase as well as that he or she was promised a certain return for their purchase. The liability can be as high as 300% of the purchase price. This could become a tremendous liability to someone trying to sell a home by themselves.
- You’re not saving money:
While it may seem like you’re pinching pennies by cutting out the Realtor from the selling process, that is not actually the case. Professional agents help in finding the best deal possible.
- Scams are more common:
When you are selling a home by yourself, it is hard to spot warning signs of potential scams. Realtors will be able to spot these for you.
- You’ll save time:
The process of selling a house takes a lot of time and energy. Hiring an agent will save you a lot of precious time and stress throughout the process.
- You may resort to an agent anyway:
Many For Sale By Owner situations turn into agent-seller transactions anyway. FSBO clients more than likely will inevitably realize how difficult the process is and seek out help before they are able to close a deal.
- You may not be aware of the details:
It makes sense that people seeking to sell their home may not be aware of all the details that go into it. It is much harder for clients to research the procedure on their own than it would be to simply to hire a trained agent.
- Paperwork may be troublesome:
If paperwork is not properly filled out, it may be cause for a potential lawsuit on the seller’s part. With any loopholes at all, a buyer may be able to legally target the FSBO seller.
- You may not be well-versed in inspections:
Inspections are an important part of selling a home, and someone trying to sell their home themselves may not be equipped to handle them. There is a lot that goes into home inspection, and only an agent can make sure it is done efficiently.
- There isn’t any marketing:
When hiring a Realtor, homes are able to be marketed across various real estate platforms, and thus can be sold faster. FSBO does not allow for any marketing strategies, and thus homes do not get sold as quickly as they would otherwise.
- There isn’t any representation.
Many people who are selling homes are drawn to big-name Realtors whom they feel they can trust. With FSBO, home buyers do not have that same security and therefore may be less willing to consider buying the home.
- Buyers want the best deal imaginable:
Home buyers are looking for the most affordable option when searching for a home, and chances are FSBO is not the cheapest choice. Only an agent will be able to provide a fair, affordable deal for all parties involved.
- Each party will benefit:
Both sellers and agents net more money when selling through a Realtor, than through FSBO. At the end of the day, it is the most obvious choice for that very reason. While it may seem like more sense to cut out the middle man, hiring a trained agent will help save time, money, and energy in the long run – all while helping you gain the best profit for your home, as well.
- Agents know what they’re doing:
Agents can not only save sellers time, money, and headaches, but also liability that in many areas can go beyond the property value.
Elizabeth Stone - July 11, 2017 12:09 pm