Selling your house FSBO (For Sale By Owner) can have its benefits—but also its drawbacks. You may not realize what’s involved; “Choosing the right price, crafting a compelling listing, marketing to potential buyers, coordinating showings, preparing paperwork: All of these are tasks that, in the absence of a real estate agent, you will have to do yourself,” as Bankrate explains.
It’s important to go into your decision fully prepared and with your eyes open. Let’s look at some potential pitfalls of FSBO so that you can decide whether or not it’s right for you.
Pitfall 1: Sinking too much money into repairs.
When you’re selling a house on the market, you may need to make repairs and upgrades, especially if your house is dated or distressed. The thing is—not all upgrades have a good return.
If you don’t know the ROI of different upgrades in your area, it’s easy to sink too much money into repairs or upgrades that may not come back to you in the sales price.
Pitfall 2: Pricing it wrong.
Pricing your home too high and pricing your home too low are equally dangerous pitfalls. Nerd Wallet explains: “If your home is overpriced, you run the risk of buyers not seeing the listing… but price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house.”
If you don’t understand your local market, it’s easy to price incorrectly.
Pitfall 3: Failing to market properly.
Marketing a home isn’t as simple as listing it on Zillow. If you’re listing FSBO, you’ll need to stage your home, get professional photos, and write an appealing listing with all the right information. You’ll then need to create a listing on the Multiple Listing Service (MLS), and possibly run ads on social media. In addition, you’ll have to be ready to answer questions quickly when potential buyers call or email. You’ll need to be very flexible and accommodating with showings and open houses.
If you don’t do enough marketing, you won’t get enough eyes on your home—which means you won’t get the best price.
Pitfall 4: Fumbling negotiating and logistics.
Sales fall through all the time due to inexperienced negotiations or improper paperwork. When you’re selling FSBO, you’ll need to coordinate with the buyer, the buyer’s agent, the inspection company, the appraiser, and more. You’ll need to write up the sales agreement and include any necessary disclosures. You’ll need to gather all the right paperwork for the closing.
Selling FSBO means everything is on you. If you make mistakes, you’re not only risking the sale falling through; you can also be legally and financially liable for things like improper disclosures.
Bottom line:
We don’t mean to say that FSBO is never a good choice; it can be a great option for some people! For many without specific real estate experience, though, the time, work, and risk involved may not be worth it, especially if your house is dated or needs repairs.
Luckily, there’s another way to get a no-commission sale. When you work with MarketPro Homebuyers, you can get cash for your home as-is with no commissions or fees. You don’t even have to worry about repairs, pricing, marketing, or logistics! We provide a stress-free sale.
You may wonder:
Can I sell my house fast if it has foundation issues?
Can I sell my house fast if it needs extensive electric work?
Can I sell my house fast if it needs massive updates?
If you’re selling to MarketPro, the answer is yes! We buy homes in any condition. Selling to MarketPro has the benefits of FSBO—and more—without the risks.
Work with MarketPro:
We’ll give you a fast cash offer for your current home just as it is now; no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what your home would likely bring on the open market.
If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania or Florida, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a same-day, no-pressure quote.
