The cost of selling a house can be prohibitive, and many homeowners choose to go through the FSBO or For Sale by Owner route. Learn what the advantages are of selling a house privately and how you can get started.
Real Estate Agents Does What?
A real estate agent is a person that helps homeowners go through the entire sales process of buying or selling a home. A good real estate agent can help put you in touch with an entire network of people that can help you sell your home, everyone from contractors to real estate lawyers. The agent does not sell the house for you, so much, as they help you during the sale from advice to contracts, and everything in between.
There is nothing saying legally that you have to use an agent during the sales process. If you are so inclined you can do all of the research to sell your home and take care of the process yourself.
How much money can you save?
A real estate agent’s commission is usually around 5 to 7 percent from the purchase price of the home, but it varies among local markets and is quite negotiable. The percentage seems paltry, but compare it to the purchase price of a house. For example, if you receive $150,000 for your house using a real estate agent, then even with a 5 percent commission, the agent will receive $7500. This commission only increases with the increased sales price of the home. Thus, there is the potential of saving thousands, even tens of thousands of dollars, depending upon how much your home is sold for.
Other Reasons To Sell With A FSBO Process
Some homeowners like the control of knowing that every part of the sale process is within their hands. There is a lurking fear among some homeowners who believe that even though the real estate agent is receiving a commission, the agent is not properly engaged in the sale of their home. Perhaps an agent has too many properties to give proper assistance, or too little experience. Sometimes homeowners believe that an agent will give more time and effort for greater commissions leaving smaller, less valuable houses to collect dust.
Is it right for you?
It is very important to figure out if the FSBO route is the right one for you. No matter why you are thinking of selling a house without a Realtor you have to take into account that it is going to take a lot more of your time and energy then if you had sold the traditional way. You will be doing something that other people have made an entire career out of so you have to be ready for a lot of work. The big reason you sell this way is because if done correctly you can potentially save yourself a lot of money in the process. You will be making the listing by yourself, doing all of the market research, scheduling and meeting the people for the showings, plus making all phone calls to complete the sale process. Even if your state doesn’t require a real estate agent you will have to get a real estate attorney involved to handle the legal part of the sale.
Moreover, though everyone wants a quick home sale, the FSBO route traditionally takes more time for the sale and the houses that sell this way are in excellent condition. If your home is heavily damaged or you need to sell your home quickly, consider contacting a real estate investor directly to see what they can offer before addressing a real estate agent.
Resources
With the advent of the internet, there has never been an easier time to sell your home by yourself. FSBO sites are good places to look for advice as well as a place to list your home. You can also use the same listing service that real estate agents use by paying a small fee to list on the MLS.