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What is FSBO? It is the acronym for “For Sale By Owner”. It is, therefore, the practice of selling the property directly, without the help of a broker.
One of the main reasons why some owners try to sell directly, without the help of a broker, is because they believe they will save the commission that the broker charges to do the intermediation.
However, a study published by Collateral Analytics reveals that FSBOs do not actually save anything and, in some cases, the owners may be losing money by not hiring a broker.
In this article 4 reasons not to practice FSBO are listed. Always seek the guidance of an experienced broker in the market who intends to sell your property. Keep reading to understand:
1 – You won’t save anything by practicing FSBO
FSBO owners often do not pay attention to the fact that the buyer knows that the sale is being carried out directly.
The buyer knows, therefore, that there will be no commission at the end of the sale. Certainly this information will be used to get discounts, especially if the buyer is being advised by a purchase broker, which is very likely.
2 – Are you prepared to negotiate with all these parties?
A person can be an excellent negotiator, but will hardly have the necessary experience to negotiate with the amount of professionals that a sales process requires. To liist some:
- The interested buyer himself;
- The broker hired by the buyer, who will do everything in the best interest of his client;
- The buyer’s lawyer;
- The inspection company, hired by the buyer and will make a “fine-tooth comb” on the property;
- The appraiser, in case any questions arise about the price of the property.
3 – FSBO brings very low exposure to the property
In article 7 disastrous mistakes when selling your property in Florida the loss of exposure of the property when being worked directly by the owner is explained.
By selling directly, your property cannot be listed in the MLS (Multiple Listing Service) system. It is an exclusive system of licensed brokers in Florida, where all properties in the market are registered and accessed by all brokers. There are more than 215,000 brokers in Florida.
Each of these brokers may have tens, hundreds or thousands of potential customers interested in your property.
In a quick account, your property will no longer reach millions of potential buyers.
The greater the number of potential buyers, the greater the chances of competition between them and, consequently, better offers for your property.
Also consider that all these brokers carry out the most varied marketing campaigns and strategies, including digital marketing. Your property, when being worked directly, would be ceasing to appear on all the social networks of these thousands of brokers, not to mention their websites and email marketing campaigns.
Your property would have a very low online exposure. More than 90% of people search for real estate first on the internet and, therefore, not being exposed to it is certainly fatal to the process of selling your property.
Research conducted in 2022 revealed that about 99% of real estate buyers between the ages of 24 and 57 used the internet to search for real estate. Among the oldest generation, from 77 to 97 years old, 84% of people used the internet.
4 – Your property will not be properly prepared for the market (Home Staging)
An experienced broker is familiar with the concept of “Home Staging”, that is, preparing the property for sale.
Staging provides from the redecoration of the spaces to the realization of small renovations or repairs.
Properties that go through the Staging process can get up to 20% more in sale value, in addition to being sold faster.
Learn more about Home Staging in this article
Do you want to know our strategic sales plan for your property in Florida?
AMG International Realty is a global real estate company specialized in Florida. If you are interested in knowing our customized strategic sales plan for your property, contact me right now and talk to me: +1 305 761 2655 (Heloiza Arazi).
