sold house with blurred family on background
Every year, over 5 million existing homes are sold in the United States. In 2018, a whopping 91 percent of sellers got the help of a real estate agent, with the rest selling on their own. So, if you’re considering taking the ‘For Sale By Owner’ (FSBO) path, you’re not alone.
But what does it take to FSBO? Why is it that only a small percentage of sellers take this path?
In this article, we’re taking a closer look at selling a house by owner. Continue reading to learn whether you’re making a good decision.
FSBO Saves You Money
Here’s the thing.
A real estate agent will help you sell your house faster, but you’ll pay for their services. On average, agents take a 6 percent cut off the sales price.
If you’re in a tight financial spot, you probably want to pocket as much money as possible from the sale of your home. Selling by owner takes out the middleman, so you don’t have to worry about paying commissions to anyone.
Owners Have Access to a Range of Selling Tools
A decade or so ago, FSBO was a no go. Without the help of a professional, homes would sit on the market for a long time. Owners just didn’t know how to go about marketing and selling their homes.
Times have changed, though.
Today’s homeowner has unfettered access to a wide range of digital tools that make the home selling process far easier. For example, you can take 360-degree photos of the property and post on social media platforms. You can also place advertisements on various online channels.
When it comes to closing the deal, you can obtain all the information you need from real estate websites.
Although a real estate agent can fasten the selling process, there’s nothing to suggest that a determined individual seller can’t sell a property just as quickly.
FSBO Means You Don’t Get Professional Advice
As much selling a house by owner isn’t as hard as it was years ago, nothing can replace the input of a licensed real estate agent.
Real estate agents are trained specialists. They know what it takes to sell a house at the right price.
As such, when you go the FSBO route, you miss out on crucial professional advice. You could end up selling the house at far below its market value and you might expose yourself to legal risks.
In fact, some buyers (who’re being represented by buyer’s agents) might lose interest in your house once they learn that you’re selling without an agent.
The Paperwork Can Be Overwhelming
Selling a home involves a lot of paperwork.
Some of the documents you’ll need to have include: the original sales contract, certificate of occupancy, title of ownership, mortgage and financing records, inspection reports, and repair and maintenance records.
If you’re not an experienced seller, getting ahold of all the required paperwork can be challenging. This can increase the amount of time it will take to close a deal with a buyer and might even be a turn off for potential buyers.
Selling a House by Owner: There Are Pros and Cons
Selling a house by owner has its advantages, but also a fair share of downsides. You won’t have to worry about paying commission and there are a host of resources to help you sell the property. However, taking the FSBO path exposes you to legal risks and you might fail to fetch the maximum price.
Bottom line? You have the information to decide whether FSBO is a yes or a no go.
Keep reading our blog for more tips and insights.