What does it mean when a home is "For Sale By Owner"?
Most people do not know enough to sell their own house. Heres why.
1. They Cant List It! Only licensed brokers and agents can create a listing in the MLS sale-by-owner houses will be invisible to agents and unavailable on the Web.
2. Agents Wont Show It. Typically, a buyers agent gets part of the commission paid to the sellers agent. Sale-by-owner houses do not have that commission commitment so a buyers agent might not get paid. No agents makes the pool of buyers MUCH smaller.
3. It is Probably Overpriced. Most homeowners do not have enough data and emotional distance to put a market price on their own home. and overpricing is another deterrent to potential buyers.
4. Buyers Prefer Neutrality Buyers will spend less time in the home and be less likely to make an offer because owners arent neutral about the transaction.
5. Legalities & Complexities. Real estate transactions are complicated. Most homeowners do not know enough to avoid potentially expensive liabilities Overlooking a form or required disclosure exposes the seller to lawsuitsAFTER the transaction is closed. There are buyers with enough real estate experience to sell their own homebut if you havent ever sold someone elses home you probably shouldnt try selling your own.