FSBO Tips Charleston SC: Netting Less Further Explained
Yesterday I outlined some common reasons why people choose to sell FSBO. In today’s post I will look further into why FSBOs typically net less than selling with an agent.
Another reason for FSBOs netting less is that they may not know how to correctly price their home. This is where the expertise of an agent can benefit the homeowner. A good agent not only knows the prices recent homes have sold for, they can also determine where the market is heading and what is the best price to list at.
Selling a home FSBO can be difficult in any market, even a hot market. The process has become more difficult over the years, especially in recent years after the bubble burst and mortgage meltdown. The state of South Carolina recently changed the standard real estate contract, and many agents are still trying to fully understand the differences.
Remember, if you do not hire an agent to sell your home, you are then taking on the job of Realtor. You have to determine the right price–price to high and you will never sell, price too low and you can lose thousands or tens of thousands of dollars.
You must handle negotiations and paperwork. Plus, there are many aspects of the process and protocols that you are not familiar with. A Realtor works to protect their clients best interests, but they also have a wealth of knowledge and experience to draw from.
Because the process of buying and selling real estate has become more complex over the years, it is not surprising that the number of homes sold FSBO over the years has continuously dropped. In fact, over the last 20 years, the percentage of homes sold FSBO has dropped to just 9%, down from 19% 20 years ago.
Another reason it is increasingly more difficult to sell FSBO is because of how homes are sold in today’s market. Specifically, where the buyers are coming from. Statistics show that 88% of buyers used an agent when purchasing a home. Remember the point I made earlier regarding commission offered….the majority of buyers go through an agent, so if you are invisible to the agents, there goes 88% of your potential buying pool.
92% of buyers use the internet for their home search. This is another key reason FSBOs often fail to sell–the marketing. A yard sign is not enough. You need to have your home on the internet–after all, that is where 92% of your potential buyers are. However, just being on a for sale by owner site isn’t enough. The majority of home buyers do not search FSBO websites.
So, even if you get your home online in a couple of places, that likely still won’t be enough. Chances are, you do not have a comprehensive web based marketing strategy that a professional real estate agent has. Remember, they must have this or they will not sell houses!
Stay tuned for more FSBO tips Charleston SC as I expand on the marketing angle and cover the second reason people choose to sell FSBO, the dislike/distrust of agents.
In the meantime, if you haven’t already, check out my helpful video of FSBO Tips Charleston SC.
Charleston SC FSBOs can get my “FSBO Help Kit” here.
And keep current with all things Charleston SC real estate at my website.