Close to 25% of all the homes sold in the USA are sold for sale by owner (FSBO). With real estate commissions ranging from 4% to 10% it not surprising the figure is so high. A real estate agent commission can be several thousand dollars on just one property transaction.
Make no mistake; if you dream of making a larger down-payment on your next home, or want to retire, or simply want to hang onto the equity you have worked so hard for – then you could save thousands by selling your home for sale by owner.
Like anything in life, to do the job well requires some effort and knowledge. To help get you started; these are some of the questions you will need to ask yourself before deciding to sell your home FSBO:
1. Do you have the time, energy, know-how and motivation to sell your own home FSBO?
One of the keys to selling your home efficiently and profitably is complete accessibility. Many FSBO homes sit on the market for months on end because the owner is unwilling or unavailable to show the property to potential buyers. Realize that a certain amount of time each day is necessary to successfully sell your home FSBO.
2. Can you overcome the ‘emotional attachment’ that you may have for the property being sold?
Your home might be where your kids grew up, or where the family pet is buried. It might also have been designed, decorated, or landscaped to your personal tastes. Are you prepared to hear and accept buyer criticisms of your home? Are you unbiased as to what your home is really worth in today’s real estate market?
3. Are you prepared to deal with an onslaught of buyers who perceive a home for sale by owner as a potential bargain?
One of the challenges of selling FSBO is screening unqualified prospects and dealing with the bargain hunters. Selling for a bargain price may be worse than paying the real estate agent commissions.
4. Are you prepared to offer financing options to the buyer?
By offering financing options you give the home buyer the ability to work on their terms and open up the possibilities of selling your home quickly and more profitably.
5. Do you fully understand the necessary steps required in selling your own home yourself?
Many FSBO sales have been lost because of incomplete paperwork, lack of inspections, inadequate contracts etc. If you are not completely informed of all the steps necessary to sell a property, then contacting a legal professional is recommended. Ensure that there is no misinterpretation of what is negotiated.
6. Have you contacted the necessary professionals?
When selling real estate FSBO, several professionals may need to be involved to ensure a problem-free sale including: title company, inspector (home and pest), real estate attorney, and escrow company.
Do not be discouraged if you were a bit put off by any of the above questions. They are designed to help you think carefully before deciding to sell your home FSBO. The fact is; an increasing number of people are successfully selling their own homes, without the services of a real estate agent – why can’t you? You may well be able to do a far better job than a real estate agent, or broker, and save yourself thousands of dollars in real estate agent commissions. But, if you fail to do a competent job, it could cost you a lost sale, wasted time and the money you spent marketing the property on your own.
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