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Tuesday, May 2nd, 2023

Why you Should Avoid FSBO – By your Friendly Vancouver Mortgage Broker

Why you Should Avoid FSBO – By your Friendly Vancouver Mortgage Broker

Adil Virani Vancouver Mortgage BrokerWhat does FSBO mean? It means For Sale By Owner and can be a costly mistake. Some people think it might be a clever idea to sell the home on their own. The main reason they do so is to avoid paying the broker fees to a real estate agent.

As a Vancouver mortgage broker, we understand that everyone wants to do whatever they can to save money. But, you should be aware that there could be some huge risks in selling your home on your own, especially if you don’t know what you’re doing.

There are many reasons why a real estate agent can provide benefits you might not know about. Let’s look at some of the main problems and hurdles that you might encounter if you go this route.

1. Real Estate Listing Could be Poor

It’s not enough to just stick a sign on the lawn and hope for the best. You have the get the listing out there so you can screen potential viewers. Sure, there are plenty of sites on the internet you can advertise, and that means you will likely have to pay a fee. And, you will not be getting access to the main listing which is available only to licensed real estate agents which is the Multiple Listing Service or MLS for short.

Many people want to use bona fide sites where they know they will get a full disclosure about the both the good points and the bad points about a home. Providing full disclosure is legally required and is preferred by most potential home buyers.

2. Can you Afford the Time Required?

You can’t just show a home at your convenience, because if you can’t make yourself available to a buyer when they want to see the home, they’re just going to go elsewhere. So if you have an active work schedule and busy family members, are you going to be able to miss time from work? Are you prepared to give up your spare time on both the weekdays and weekends to show your home? Because that’s what you’re going have to do if you want to sell the home.

If you’re thinking you might make a private arrangement with a realtor to do it for you, then plan on making a lot of phone calls because most realtors won’t touch a situation like this with a ten foot pole. The risk simply is not worth it to them.

3.  Being Unrealistic

Do you really know what your home is worth? It’s not uncommon for homeowners who go the FSBO route to overvalue the home they want to sell. An over priced home is not going to sell. This is one of the reasons you should take advantage of a real estate agent who can more accurately peg the worth of your home to make it more attractive to a potential buyer.

4. FSBO Homes Lack Trust

Most people prefer to buy a home from an agent because they know what they are getting. Also, it’s a lot less nerve wracking for a potential buyer because they don’t have to engage in the negotiation process which tends to be more personal. Also, a potential home buyer will be more assured that they know what they are buying and that the owner isn’t withholding vital information about flaws or previous damage.

An FSBO owner can also be subject to a whole range of legal issues and possible suits if the new homeowner does encounter a problem. If you use a real estate agent than the issue of disclosure becomes their problem and not yours.

Take it from your friendlyVancouvermortgage broker and avoid all these hassles and use a professional real estate agent