Marketing a property using "For-Sale-By-Owner" approach is constantly debated within the real estate world. We certainly don't blame you for trying to sell your home yourself, versus enlisting the help of a Realtor. Upon first glance, it seems like a smart idea to put up a for-sale sign in the front yard to see if you get any bites. You avoid the hassle of finding a real estate agent and avoid paying out any commission. However, most of the time, the "For-Sale-by-Owner" approach is not nearly as successful as using a Realtor, especially in a buyer's market like the Denver housing market.
According to a recent report from the National Association of Realtors, home sellers are staying clear of the FSBO approach. FSBOs decreased in 2010, making up only nine percent of total home sales, versus 14 percent of home sales in 2003 and 2004. A larger number of sellers are using experienced real estate agents for assistance with selling their homes, since they are coming to the realization that it is tough to sell their own homes. FSBO sellers often have a hard time with pricing, marketing, and staging their properties without the help of a real estate agent.
A large number of FSBOs are transferred between friends, relatives, or neighbors, which does make sense in many cases, but if you are not doing this, consider hiring a real estate agent for the following reasons:
– The Metrolist (MLS) is king. If you are listing your home yourself, you will not be able to list your home in the MLS, your area's database of homes for sale. Only real estate agents are permitted to list homes in the MLS. This dramatically cuts down your home's exposure to potential buyers and to their Realtors.
-FSBOs are also locked out of many powerful home listing sites, including Realtor.com.
-Many Realtors won't show FSBOs. In addition, if you try to sell your home yourself, you miss out on the tight community of Realtors, who often homes because they know the listing agent.
-You miss out on a Realtor's professional assistance in determining your property's listing price, along with how to stage the home for a quick sale.
-Realtors understand the twists and turns of everything involved in a real estate transaction, including listing the home, marketing the home, negotiating with potential buyers, closing the transaction, and the list goes on!
-Potential buyers are often intimidated by FSBOs and prefer homes attached to a listing agent. They like some sort of buffer between them and the seller – someone who is able to negotiate and close the transaction.
Regardless if you want to sell your home yourself, or list it through a real estate professional, we wish you the best of luck in selling your property. Happy home selling!