Potential Pitfalls of For Sale By Owner (FSBO)

By: Kaitie Moore Underwood | REALTOR®, Blue Collar Commercial Group

Selling your home can be an exciting prospect, especially in a seller’s market where the potential to upgrade, cash in profits, or downsize awaits. However, the allure of saving money through a For Sale By Owner (FSBO) transaction may quickly fade when considering the numerous challenges and potential problems that can arise.

FSBO sellers face various obstacles, with statistics showing that they are successful only about 14% of the time. Moreover, out of that small percentage, 7% of successful sales are to individuals already known to the seller, like friends, relatives, or neighbors. This leaves a mere 7% success rate for truly independent FSBO transactions.

One of the significant risks of FSBO is the lack of representation, leading to 71% of real estate litigation cases. In such scenarios, the buyer typically has their agent looking out for their best interests, while the seller lacks professional guidance. Consequently, FSBO sellers are more prone to legal disputes, potentially costing far more than hiring a real estate professional in the first place.

Real estate transactions demand meticulous attention to detail and knowledge of various documents and forms, all of which must adhere to state real estate laws. Without this expertise, FSBO sellers can easily fall into pitfalls with severe legal consequences. On the other hand, a skilled broker will navigate the process more effortlessly, providing invaluable guidance and support throughout the transaction.

An experienced broker brings multiple marketing channels to the table, ensuring your property receives optimal exposure and attracts suitable offers. The possibility of having multiple offers to consider has the potential to lead to a higher sale price. According to the National Association of Realtors, having a real estate professional can fetch a 10% to 13% higher price for your home compared to selling it yourself, thus compensating for any fees paid.

Furthermore, most buyers enlist the services of real estate professionals, whose fees are typically covered by the seller. In an FSBO scenario, the buyer has representation while the seller does not, further tilting the scale against the FSBO seller. Additionally, some buyers might be hesitant to engage in FSBO transactions due to potential complications, reducing the likelihood of a successful sale.

Ultimately, working with a professional can save you money in the long run, especially by avoiding litigation after the sale. Diligently adhering to the state’s real estate laws throughout the transaction is crucial, and real estate professionals are well-versed in these laws, ensuring a more smooth and legally sound process.

Licensed real estate professionals at Blue Collar Commercial Group undergo rigorous Federal and State exams, mandatory continuing education, and deal with real estate transactions daily, building extensive experience. Their expertise, coupled with a keen understanding of ever-changing rules and regulations, prevents critical details from being overlooked.

Just as you wouldn’t perform surgery on yourself to save a few bucks over consulting a qualified doctor, attempting a real estate transaction without professional help could lead to costly mistakes. Given that real estate transactions are among the most significant financial dealings in our lifetime, leaving them to chance is simply not worth the risk.

Working with Blue Collar Commercial Group agents ensures you have reliable experts by your side throughout the process. Their comprehensive knowledge and dedication will alleviate the stress and complexities of selling your home and ensure you get the best possible outcome. Don’t take chances when it comes to your home’s sale—consider working with us and experience a seamless and successful real estate journey.

(Data Sourced from: Mark Fuller, Fuller Home Options- https://fullerhomeoptions.com/for-sale-by-owner-fsbo)