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Johnnie Creel & The Creel Group

865.694.5904 - 865.936.4116

To FSBO or Not to FSBO, That is the Question

Many times in this industry, as an answer to why people choose to go “for sale by owner” (FSBO), we hear “I don’t want to pay a commission” or “My [friend, parents, church connection, uncle] sold [his, her, their] home FSBO.”  But the real question we should be asking is not WHY you would want to sell FSBO, but WHAT is the value of the time you will spend on a FSBO?

First, there is marketing, because FSBO’s website is not free! You have to spend the time entering your listing, taking and posting photos, and making flyers and signs. And then what happens? You wait.

Next, you will receive few inquiries, due to the smaller sphere of marketing, and many of these inquiries will be inquiries about renting, lease/purchase, or owner-financing. More often than not, these situations do not work out in the favor of the seller, and then there is the time, headache, and even possible financial cost of rectifying these situations, if they go south.

Finally, should you get an offer, there are ALL the people you have to negotiate with to get the sale closed. Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies which work for the buyer
  • The termite company most buyers will hire to inspect a property, should there be challenges
  • The buyer’s lender if the structure of the mortgage requires the sellers’ participation
  • The appraiser if there is a question of value
  • The title company if there are challenges with certificates of occupancy (CO) or other permits
  • The town or municipality if you need to get the COs permits mentioned above
  • The buyer’s buyer in case there are challenges on the house your buyer is selling.
  • Your bank in the case of a short sale

Ask yourself these three questions, when you are preparing to sell your home:

1) What is the value of your time?

2) What is the value of your peace of mind that all of these complex situations have been taken care of by a professional?

3) What is the value of your best interests?

If you would like a no cost/no obligation market valuation of your property, click here or contact us today!

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