Why you won't save money by selling on your own
There are plusses and minusses in selling a home on your own. These are the minusses.
1. “For sale by owner” hunters want a bargain. The only reason why a buyer is going to shop purely FSBO is because she wants – what? – a bargain. She doesn’t want to just save the commission; she wants a bargain. You’ll notice they’ll offer you about 10% below what you have been asking. This is why you won’t save anything, and you are going to basically walk away with the same amount of money or less than If we sell it for you.
2. Third-party negotiating. By using an agent, you won’t negotiate directly with the seller -- agents will do all the negotiating. Shouldn’t you lean on a professional who has negotiated dozens or hundred of deals? Plus, agents have a vested interest in getting you more money because they benefit, too, via commission.
3. More available resources. You want the best possible price. To get the most money, agents need to get the most buyers through the door. To get the most buyers through the door, agents have to generate the greatest amount of exposure on the home, doing this through marketing tools. The more marketing tools you have, the more exposure a house gets. The most exposure, the more buyers through the door. The more buyers through the door, the higher the price you will get for the house.
Here’s one example. What is the best type of buyer? Relocating buyers. Why? Because they need to move and they have to buy, and they are most likely in a time crunch.
- Last edited November 14 2008
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