Save money by selling for sale by owner
The cost of selling a home can be prohibitive, and many homeowners choose to go the FSBO or For Sale by Owner route. Learn about the benefits of selling a home privately and how you can get started.
What do real estate agents do?
A real estate agent is a person who helps homeowners go through the entire sales process of buying or selling a home. A good real estate agent can help you connect with a full network of people who can help you sell your home, from contractors to real estate attorneys. The agent does not sell the house for you, but they help you through the sale, from consulting to contracts and everything in between.
There is nothing legal that says you must use an agent during the sales process. If you want, you can do all 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 typically around 5 to 7 percent of the home’s purchase price, but it varies between local markets and is fairly negotiable. The percentage seems insignificant, but compare it to the purchase price of a house. For example, if you receive $ 150,000 for your home using a real estate agent, even with a 5 percent commission, the agent will receive $ 7,500. This commission only increases with the increase in the sale price of the home. So there is the potential to save thousands, even tens of thousands of dollars, depending on how much your home is selling for.
Other reasons to sell with an FSBO process
Some owners like the control of knowing that every part of the sales process is in their hands. There is a latent fear among some homeowners who believe that even though the real estate agent is receiving a commission, the agent is not adequately involved in the sale of their home. Perhaps an agent has too many properties to provide adequate assistance or too little experience. Sometimes homeowners believe that an agent will spend more time and effort to earn higher commissions, leaving smaller, less valuable homes to collect dust.
Is it correct for you?
It is very important to find out if the FSBO route is right for you. No matter why you are considering selling a home without a Realtor, you should be aware that it is going to cost you a lot more time and energy than if you had sold the traditional way. You will be doing something that other people have done a career in, so you have to be prepared for a lot of work. The big reason you sell this way is because done right you can save a lot of money in the process. You will do the list yourself, do all the market research, schedule and meet the people for the exhibits, as well as make all the phone calls to complete the sales process. Even if your state does not require a real estate agent, you will have to involve a real estate attorney to handle the legal part of the sale.
Also, while everyone wants a quick home sale, the FSBO route traditionally takes longer to sell and homes sold this way are in excellent condition. If your home is badly damaged or you need to sell it quickly, consider contacting a real estate investor directly to see what they can offer before approaching a real estate agent.
Means
With the advent of the Internet, there has never been an easier time to sell your home on your own. FSBO sites are great 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.
