For Sale By Owner (FSBO) – What Are the Risks?

The decision to sell a property can be a daunting task. Some sellers consider “For Sale By Owner” (FSBO) with the thought that they will save money by not paying a commission to the selling agent and have more control over the process. That said, it is important to understand the risks involved with FSBO as well as the advantages of using a professional Realtor® to manage your real estate transactions.

Expertise and Knowledge

Local real estate agents bring a wealth of knowledge and have a deep understanding of the housing market, property values, and the legalities involved in the sale of your home.  It is this experience that makes them effective in assessing your property’s value, suggesting a listing price, handling negotiations, and most importantly, guiding you through the legalities of your real estate transaction. FSBO sellers often undervalue their property (leaving money on the table) or overvalue (limiting or deterring potential offers), which can hinder the selling process.  When negotiations are underway, an experienced agent has strategies to help close the deal and knows the process and paperwork that is required for a successful closing.   

Effective Marketing

A professional real estate agent is proficient in effectively marketing your property.  They have access to the multiple listing service (MLS).  By listing your property in the MLS, your property will reach all online channels and reach a vast network of potential buyers and Buyer’s Agents. FSBO sellers usually only reach a limited number of buyers through signage and the owners’ network of friends, family and business associates, which often leads to a prolonged sales process or a lower sales price.  A professional Realtor® understands how to market your property, including direct mail, open houses, Agent Property Tours, MLS, digital marketing and more.  They understand the power of multi-channel marketing and work to identify property’s target buyers and achieve the quickest sale at the highest sale price the market will bear for the homeowner.

Negotiation Skills

Real estate agents act as intermediaries and are skilled negotiators who can be objective while representing your best interests. Real estate transactions can be emotionally charged. By having a professional real estate agent negotiate the sale on your behalf, sellers have a professional Realtor® to apply time-tested tactics and experience to close the sale. With a FSBO seller, this could lead to unfavorable terms or no deal at all.

Time and Convenience

Selling property is time-consuming.  From listing to selling, there are a lot of steps in the process. From market research and marketing to showing the property and executing the appropriate paperwork among all parties involved, there is a lot that goes into achieving a successful closing.  FSBO sellers may find themselves overwhelmed, especially those with full-time jobs or other commitments.

Legal Guidance and Protection

Real estate transactions involve complex legal documentation and potential liabilities.  Licensed Realtors® are well educated in the legal aspects of selling property.  They can guide you through the process and ensure compliance with laws and regulations. They know what document to prepare, and when to execute.  FSBO sellers often run the risk of making costly legal mistakes which could lead to disputes or even lawsuits down the road.

Making the best choice

While the idea of FSBO may initially seem attractive, the advantages of using a professional real estate agent far outweigh the modest commission you’ll pay to your listing agent. To ensure you sell your property the fastest at the highest sale price without legal worries, a licensed real estate agent is the best way to achieve your real estate investment goals. 

Newman-Dailey Resort Properties has been managing real estate transactions on the Emerald Coast since 1985.  Our boutique real estate agency located in Miramar Beach, Florida is comprised of local agents who pride themselves on their ability to provide their clients with an expert understanding of the area and market values.  Our team consistently ranks in the top 10% of agents in the Emerald Coast Association of Realtors®.

View recent real estate listings here or contact us at 850-837-1071 to buy or sell your dream home in Northwest Florida.

See you @ the beach!

Published on Monday, August 28, 2023