Indeed some people are able to sell their own homes in the Sarasota housing market without the services of a real estate agent. Some of these successful self-sellers are very experienced Sarasota home sellers. Others are transferring ownership of their home to a child, a coworker or a tenant who is already living in the home. Nevertheless, these circumstances are the exception, not the norm. For most people, a for-sale-by-owner (FSBO) transaction simply just is not in the offing. This article explores some of the reasons why FSBO is not so popular in the Sarasota housing market.

First, FSBO sellers cannot list their home in the multiple listing services of the Sarasota housing market. They are not permitted to put their home in the multiple listing services because these industry membership organizations are open only to licensed real estate brokers and agents. In addition, FSBO sellers are also locked out of many home search engines and Web sites. Of course, a determined FSBO seller can put a for-sale sign in his or her front yard and run a tiny advertisement in the local newspaper, but the home would not receive nearly as much exposure as it would through the multiple listing services.

Second, Sarasota real estate agents will not show FSBO homes. In a typical home sale, the buyer's agent receives a percentage of the commission that the seller pays the listing agent. Without a listing agreement, there is no guarantee that the buyer's agent will be compensated for his or her services, unless the buyer has signed a buyer's brokerage agreement that specifically provides for such compensation. Even if a FSBO seller offers to pay the buyer's side of the commission, most agents will not want to go through a transaction with an unsophisticated self-represented seller across the table. That means the pool of potential buyers for FSBO homes is curbed primarily to unrepresented and probably unqualified prospects.

Third, FSBO sellers usually overprice their home. Like most homeowners in Sarasota, most FSBO sellers honestly believe that their own home is worth more than comparable homes in the same neighborhood. Usually though, they are wrong. A Sarasota real estate agent can provide an update on market conditions, an assessment of the likely selling price of the home and tips for improving the home's buyer appeal. Overpricing a for-sale home in the Sarasota housing market, which is increasingly a buyer's market these days, is a guaranteed way to deter potential buyers.

Fourth, buyers will naturally feel intimidated. Potential buyers will spend less time in a for-sale home if the owner is present during the showing, and they will be shy about discussing its pluses and minuses with their own agent if the owner is within range of overhearing. Buyers will also be less inclined to make an offer if they know that they will be negotiating directly with the seller. Having an agent on each side creates an effective emotional buffer between the seller and buyer.

Lastly, FSBO sellers are likely to stumble into legal trouble. Sarasota real estate transactions are fraught with potential liability for unwary sellers, especially in cases wherein there are extensive disclosure requirements. A FSBO seller who overlooks even one required form or legally mandated disclosure could face a protracted and expensive buyer lawsuit after the transaction closes.

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