What are the The Disadvantages of a FSBO | For Sale by Owner? Here’s an interesting little infographic from the National Association of Realtors showing the benefits of using a Realtor to sell your home. Many homeowners are under the impression they can save a bundle on commission fees by selling their properties themselves, but are in fact most likely to lose money on the final sale price.
There are many disadvantages of going the For Sale by Owner, or FSBO, route:
– FSBO sellers cannot list their homes on the popular Multiple Listing Service used in the real estate industry. This puts them at a huge disadvantage when it comes to marketing their property, forcing them to rely on traditional means of advertising such as real estate flyers and newspaper ads. While there are some fledgling online FSBO listing services, most of them charge fees and lack the reach of MLS.
– Selling a home involves a lot of preparation. FSBO sellers are expected to be in total compliance with all State and Federal laws associated with selling a property. They should be aware of financing options, tax-implications and many other aspects of selling a home. Not adhering to the many rules and regulations will open up the seller to all kinds of legal ramifications down the road.
– FSBO sellers will still need to hire a lawyer or solicitor to draw up the sales contract and represent them at closing.
– As shown in the infographic, FSBO’s on average sell for a whopping 20% less than a comparable property sold by a Realtor.
The Disadvantages of a FSBO | For Sale by Owner