6 Reasons Not to Use “For Sale by Owner” to Sell Your Long Island Home

Are you considering selling your home FSBO? For Sale by Owner seems like the best way to avoid real estate agent fees in Long Island, but there are at least six disadvantages to this approach.

 1.FSBO is costly and demands hard work

If you’re trying to sell your home via FSBO to save money, things might not work out the way you hope. You might save a little money, but you’ll have to work exceptionally hard to realize that savings. 

For example, FSBO means you’ll be responsible for creating and publishing all your ads. To place advertising, you’ll probably have to hire a professional photographer as well as a company to stage your home. 

You’ll also need to create 3D virtual tours for people to view the property online, which requires additional software and labor. When you have a real estate agent, all of these items will be covered.

 2.You won’t have help from an insider

 Real estate agents are insiders in the industry. They understand the process of buying and selling a home, and can offer expert guidance for selling yours.

For instance, selling a property on Long Island usually requires obtaining an inspection and appraisal. If you sell your home FSBO, you might not recognize the importance of this step.

The last thing you want is to meet with potential buyers who ask you for inspection records and an appraisal you don’t have. If that occurs, you’ll need to scramble to get your inspection completed and schedule an appraisal.

 A real estate agent will make sure you have an inspection and appraisal in the works before you meet with potential buyers. The agent will also research similar properties in the area to help you establish a competitive sale price.

 3.You’ll have to schedule open houses and showings

 The number-one benefit to retaining a real estate agent is not having to schedule or host open houses and private showings on your own. Showing your property to potential buyers will demand a lot of your time and energy.

 Showing your property isn’t ideal if you have other things you have to handle, such as a job, a business, hobbies, or a family. But if you choose FSBO, you’ll have to perform all those other duties yourself.

 4.Paperwork mistakes

 When you work with a real estate agent, he or she will draw up a proper contract for you and the buyer to sign. If your contract isn’t ironclad, you could end up in a lot of legal and financial trouble.

Things would get sorted out eventually, but they may have to be handled in a court of law, which can get expensive and time-consuming.

If you try to draw up contracts on your own, you may be tempted to copy contracts off the Internet. Some contracts online might be legitimate, the only way to know for sure is to have yours reviewed by a qualified attorney.

 5.You have full liability

 Unlike an agent who carries errors and omissions insurance, when you sell your Long Island home FSBO, you’re fully liable for any mistakes. For example, if you list your property as having hardwood floors, but your buyer finds out the floor is actually wood veneer, the buyer may demand a suitable amount of reimbursement.

 These kinds of mistakes might be innocent, but some people are litigious, and you don’t want to make yourself an easy target.

 6.Your property will probably sell for less

 FSBO homes generally sell for less than homes sold by an agent. Combine this with the fact that FSBO homes spend more time on the market, and you’ve got a sure recipe for frustration. 

Since FSBO home sellers don’t possess the experience of a real estate agent, it’s easy to miss vital details that could have a significant impact on the sale price. For example, determining the market value of a home takes work and plenty of research.

Without the requisite experience, you might misinterpret reports and unhappily undervalue your property. 

There are other options besides an agent 

If selling your home seems like a forbidding task, and you don’t want to have to bother with the process, there’s a pleasant option. Certain companies buy Long Island homes as-is for cash. These firms make selling your property easy and stress-free. 

Since cash offers are usually lower than what financed buyers offer, you can expect your home to sell for slightly less than your asking price, but in compensation, the process will be quick, easy, and stress-free.