To understand the reasoning behind why a homeowner should not sell their home by themselves, we need to identify the motivation. Probably, more times than not, the homeowner wants to "save" the cost of the commission. It certainly represents a significant amount of money
.A real problem encountered by For Sale by Owners was exposing their home to the marketplace. They run the risk of selling the home for a lower price because it is not marketed to the highest pool of available buyers.
Negotiating on their own behalf is another concern many for sale by owners share. There are so many different things as well as people with whom to negotiate. For instance, besides the sales price in the contracts, other negotiable terms include financing concessions, closing and possession dates, inspections and earnest money. However, the negotiations could continue well up to the moment of closing with repairs, appraisals and other unforeseen things.
While the seller might feel uncomfortable negotiating directly with a buyer, there could also be negotiations with the appraiser, inspectors, mortgage company or escrow comp[s1] any. The layer of separation that exists between the seller and other parties is the real estate professional. They are trained to de-escalate sensitive areas so that feelings are not hurt as well as acting as a go between so the way something is said can be minimized.
In a seller's market, a FSBO can sell their home. The question will be whether they received the highest price with the best terms and the fewest problems. Protecting a large financial asset is important and sellers deserve the peace of mind that a real estate professional provides along with the fiduciary duties that accompany them.
The median price achieved by For Sale by Owners is considerably less than the median price sold by agents. While there may be other factors involved, it certainly introduces the question "is the FSBO is selling below fair market value?"
Before embarking on the sale of your home by yourself, talk to a real estate professional or possibly two, to get as much information as possible to make an informed decision. Your objective should be to maximize the proceeds from the sale. If you live in the Chicagoland area, please reach out to me if you have any questions. I'm here to help!