Why For-Sale-By-Owner Is Likely To Fail

Posted on: 26 July 2018

If you are thinking of selling your home without a real estate agent, you should think again. Selling a home is not an easy thing; marketing issues, legal issues, and time constraints can all lead to a for-sale-by-owner failure. Here are some specific reasons for this:

Pricing the Property Poorly

Before you even list your home for sale, you have to come up with the right price for it. Property pricing is a delicate issue that takes into consideration multiple factors such as the neighborhood, the prevailing market condition, and even the economy, among other things. In a for-sale-by-owner project, you can easily end up overpricing the house. It is easy to do this if you are attached to the property because you may assume everyone else will be enamored by it.

Taking On Too Much Work

If you have never handled a home sale before, then you will be surprised at how much work it involves. You will need to be constantly available to potential buyers, organize marketing strategies, hold open houses or showings, and deal with appraisal and inspection issues, and this is not an exhaustive list of things to do. It can be overwhelming for a non-professional. In fact, you are likely to fail if you are selling the house while also taking care of your day job.

Failing To Screen Buyers Properly

Not everyone who shows an interest in your property is a buyer. Some of them are not actually buyers because:

  • They haven't and won't qualify for the mortgage
  • They are "just looking" and are not ready to commit
  • They are looking for properties above their budget

You need to screen everyone who shows interest in your listing and only deal with those you deem viable buyers. As an amateur, however, you may find yourself wasting your time on someone who eventually ends up not buying the property even though an agent could have seen it from the beginning.

Overspending On Sale Preparations

Lastly, you may also fail on your for-sale-by-owner project if you spend too much on the curb appeal and repairs. Maybe you have replaced the roof, installed a new kitchen, and overhauled your garden and now you are finding it difficult to recoup your investment. Your listing can stay on the market for a long time because of this.

Hiring a real estate agent will help you avoid all the complications above. In fact, you are likely to get a good price for your home if you use an agent than if you do it alone. For more information on how real estate agents can benefit you, talk to companies like C Edwards Real Estate.