For sale by owner (FSBO) companies aid the process of selling real estate without representation by a registered real estate agent. Often sellers will explore this option with the intent of saving a few dollars, but what is the real cost of taking this route? Here are 5 things for sale by owner companies don’t want you to know.
They don’t have a governed code of ethics to abide by.
CREA is the Canadian Real Estate Association which holds all real estate professionals to a strict code of ethics. This means that REALTORS® are liable if they don’t follow these guidelines, which have been put in place to protect you, the client.
Your home won’t appear on the MLS® system.
Every visit realtor.ca to browse properties? Well yours will be missing if you choose to take the FSBO route. Every day thousands of people search for homes via MLS®, but a home can only be listed in the system by a licensed REALTOR. This is a key piece of the selling strategy: getting your home in front of as many buyers as possible.
No real estate license = no real estate advice
What you may not realize is that a lot of these companies are not licensed to trade real estate. They also aren’t permitted to give out real estate advice, such as pricing a home.
You will have a lot of work to do
Selling your home through a FSBO company will still leave you with a heafty fee (which may be an upfront charge, rather than paying when a transaction occurs). But that fee doesn’t mean you get to sit back and watch your home sell. Without a real estate license, these companies can’t technically represent you and sell your home. Which means you will be doing most of the work. Do you know how to negotiate the sale of your home? Host open houses? Fill out all the paperwork?
The benefit of working with a licensed REALTOR® is that they will handle all the details. Your REALTOR® will be hustling behind-the-scenes to make sure the selling process is stress-free for you.
“Private Sale” has some baggage
From a buyer’s perspective, it can be a little unsettling to walk into a private sale. First, often the sellers are home during viewings. Imagine trying to visualize your family in a home…while there’s another family following you around. It’s a little difficult. It can also lead to questions and concerns. “What aren’t they using a REALTOR®?” “Is there something we should know about the house?” “How do we ask that?”.
There are lots of DIY projects to be done once you sell your house and move into your new home. Don’t make selling one of them.