Where are all the For Sale By Owner homes?
This was a great question that someone asked over the weekend.
With the Nashville Real Estate Market on fire, why are there not more For Sale By Owner (FSBO) homes.
If you had to explain it in one word, most Realtors would say Money. Though the real answer is more nuanced than that.
It’s also about time.
Marketing a home, negotiating a contract and getting the to the closing table takes more time than most people realize.
That time is hard to quantify. I’ve seen estimates as low as 50 hours and over 100 hours on the high side. Based on my experience, I would say it is somewhere in between.
These estimates are based on professionals who do this work every day. If you have to learn how to do these important tasks, you could easily spend double that amount of time and still not know if you are making mistakes
Do you have 100 - 200 extra hours over the next 60 days?
If you are like me, that amount of extra time in my schedule is an impossibility. I might have 5 to 10 extra hours in the week with multiple options all vying for that same time.
You might have considered this problem and have a way around it. If so, that’s awesome.
However, most people don’t consider opportunity costs. Even self-driven entrepreneurs miss this point.
What could you accomplish in your job or your business if you put an additional 100 hours into it over the next month? (and let someone else pay the bill to market your home)
Could you make more than you save?
If so, you already have your answer. I will come back to this question later this week and look at it from the money side.