|
Is For Sale by Owner right for you? Is FSBO the right method for you? If you've never done it before, it certainly can be challenging, but if you are willing to do the work necessary to market your house and work with potential buyers, there are some advantages. The most significant of which is that you can potentially save thousands of dollars normally paid out in real estate fees. Additionally, you protect your equity in your home, you may sell your home faster, and FSBO allows for more control by the homeowner then through conventional real estate brokerages. Following are brief descriptions of the potential advantages to selling your home by yourself. Then we will outline some of the challenges that face those undertaking a FSBO home sale. Saving Money on Commission Fees Typically, a real estate agent or broker who lists and sells your home gets paid with a commission of between 5% to 7% of the selling price. That means that if your house sells for $300,000, you would end up paying him or her between $15,000 and $21,000. The commission makes up by far the biggest expense associated with selling your house. If you sell it exclusively through FSBO, without the help of a real estate agent, you save that money. Sell Your House More Quickly Depending on the choices you make and the real estate market in your area, FSBO may allow you to sell the house faster than an agent could. If a fast sale is a high priority to you, once you've figured out what the fair market price for your house should be, subtract the amount you would pay an agent if he/ she were to sell it at that price, and reduce your asking price by a like amount, effectively passing on the FSBO savings to the buyer. Your house will be priced lower than other comparable ones in your area, and buyers are likely to respond quickly and enthusiastically! Even if you do not pass all the FSBO savings on to the buyer, you may be able to sell your house just as fast or perhaps more quickly than an agent if the market in your area is particularly strong and houses are being snapped up rapidly. Furthermore, it may be that you are more motivated to sell the house than an agent, who may be busy with dozens of properties at a time. Protect the Equity in Your Home An real estate agent's commission, though based on the selling price, is ultimately paid out of the equity you have in your home. Therefore, if that commission costs you $15,000 and you only have $60,000 in equity in the home, the commission will take away 25% of your equity. If you choose FSBO, you maintain and protect your equity. Keep the Selling Process in Your Control If you choose FSBO to sell your home, you will make all the decisions about when your house is available to be shown, about the correct price for the house, about the escrow company you use. All the advertising decisions - where and when your ads will run, what aspects of your home they emphasize - will also be yours. You also control how leads are followed up. You have one house to sell, realtors typically have access to thousands of homes – why should your home be the one they show or sell. If you are the type who relishes being in control of all life's details, you will probably prefer selling your home yourself. Challenges That Come With Choosing FSBO Of course, FSBO is not the answer for all home sellers. It can take significantly more energy and commitment on your part than if you were to list with an agent. You will need to be able to show your house almost at any time if you are serious about selling. You will need to pay for advertising so that potential buyers know your house is available, and do some research to know how to price your house. You will need to find and hire a good real estate attorney to tell you what things by law have to be disclosed to the buyer prior to a sale, look over any contracts, and ensure you do not inadvertently discriminate against potential buyers. You will have to negotiate directly with potential home buyers, and with buyers' agents. You will need to find an escrow company to administer the closing. In short, selling by FSBO is not simple. But, neither is selling through a real estate agent. The FSBO option can certainly be worth your hard work, if you are committed to saving money, equity and quite possibly time. You will never know unless you try! Educate Yourself! Use the resources offered on this website by FreeFSBO.com and we think you'll be on your way to the smooth sale of your home. SELL YOUR OWN HOME – FREE FSBO Real Estate Products and Tips! |
 |
|
|||||||||
 |
 |
 |
 |
 |
 |
|||||
 |
 |
 |
||||||||