For most homeowners, selling your home without a realtor is one of the best ways to maximize your return on investment. It can save you a lot of money on agent fees and commissions. However, a lot goes into the home sale process that a typical homeowner wouldn’t know.
For sale by owner (FSBO) can seem intimidating since there’s is a lot of paperwork involved, but that doesn’t mean you can’t do it. If you’re wondering if you can sell your house yourself, it’s prudent to weigh the pros and cons before putting up the FSBO sign.
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Sell Your House Yourself: What Does FSBO Mean?
For sale by owner, or FSBO is selling a house without the help of a real estate agent. A home FSBO sign means that the homeowner manages the entire process from the beginning to the end. Most people choose to sell their homes themselves to save much money that would have gone to real estate commissions.
How Does for Sale by Owner (FSBO) Work?
If you decide to sell your house yourself without a listing agent, you’ll be responsible for the whole home sale process. This is from putting up the FBSO sign or listing it to closing on the sale.
While FSBO will save you on commissions, it’s important to note that you won’t pocket the entire commission, which can go up to 6% of your home’s selling price. In most cases, the commission is usually shared with the buyer’s agent.
FSBO vs. Traditional Listings
An FSBO transaction works the same way a traditional listing would, except that the home seller is responsible for all the tasks that a real estate agent traditionally handles. Generally, an FSBO seller manages everything from start to finish.
On the other hand, traditional listing involves a real estate professional who does the heavy lifting for you. The listing agent will list your property and walk you through the necessary marketing steps to bring in offers.
Pros When You Sell Your House Yourself
Here are reasons why homeowners may choose to sell their homes without an agent:
Lower Commission Fees
One of the most obvious advantages of an FSBO is saving on real estate commissions. A typical real estate commission averages 4% to 6%, which is split between the seller’s agent and the buyer’s agent. However, you only need to pay a commission to the buyer’s agent in an FSBO transaction, which lowers commission fees by half.
You Have Total Control
Without an agent, you have the upper hand on what you have to say when selling your home. You’re the sole decision-maker when it comes to your listing price, who you let into your home, and whose offer to accept.
You Have Insider Knowledge About Your Home
As an FBO seller, you’re the neighborhood expert. You can share details with prospective buyers about the home and what it is like to live in the community. At the end of the day, you have all the insider information potential buyers want to hear about, which is a great selling point.
Cons of Selling Your House by Yourself
Selling your home without an agent can sound like a great deal, but there are downsides to consider before taking the plunge.
You Might Not Have the Expertise
Real estate transactions require expertise in the industry. From determining the home’s appropriate sale price to staging, taking photos or hiring a professional photographer, marketing, handling legal paperwork, and negotiating offers can be intimidating if you have no prior experience.
Marketing Your Home Is More Expensive Than You Think
Putting up a home FSBO sign in your yard is not enough to bag yourself a buyer. To find the right buyers, you need to market your property on social media platforms like Facebook or Instagram. Targeted marketing strategies can be helpful in a competitive market but can be way more expensive.
Submit an online application form to inquire about Angel Oak Mortgage Solutions financing options.
Buy a home or refinance your existing mortgage with Zero Mortgage.
Older homeowners can get peace of mind and added financial security with a reverse mortgage from AAG.
It Would Eat Up Your Time and Energy
Selling your home yourself requires much work that could eat up your precious time. From repairs and home improvements, staging and listing your house for sale to closing can feel like a full-time job. If you don’t have the time to work on the home sale process, selling your house without an agent may not be a good idea.
You Might Not Get the Best-Selling Price for Your Home
Listing agents typically have access to data not available to the public. For example, they can see what price homes are selling for based on market conditions. Without access to pricing data, setting a realistic sale price for your home can be difficult.
Severely Restricts the Potential Market Pool
Most home buyers find their dream homes through a real estate agent. But, without an agent, you might miss out on a potential market pool that can get your own home off the market faster.
You’re More Susceptible to Mistakes
If it’s your first time selling a house without an agent, chances are you will make several mistakes, especially if you don’t know how real estate transactions work.
Some Tips If You Do Decide to Sell Your House Yourself
If you’ve decided to sell your home yourself, here are some steps that can help you navigate the home sale process.
Determine the Market Value of Your Home
Pricing your own home is one of the most important steps. When you price it too low, you’ll walk away with less money than you should. On the other hand, you can struggle to find a buyer if you price it too high. The best way to determine the fair market value of your home is by:
- Using online real estate valuation sites, such as Zillow and Trulia
- Hiring a licensed appraiser
- Requesting a competitive market analysis from an agent
Make the Necessary Preparations to Sell Your Home
Once you know the market value of your home, it’s time to prepare for the sale. Determine what needs to be fixed to make your home market-ready. Preparations can range from minor fixes like lawn mowing to boost curb appeal to major ones, such as a basement remodel to increase your home’s value.
Adequately Market Your Home
The next step is marketing your home for sale. A home FSBO sign in your yard is a great place to start. You can go the extra mile to advertise your home online, list it on the MLS database, create sales flyers and distribute them, or even host an open house.
Screen Potential Buyers
You’ll probably have several potential buyers. Some of these are serious home buyers, while others simply gather information. Some of the questions you can ask during the screening include:
- Are you working with a real estate professional or on your own?
- Do you currently own a home or lease it?
- When do you plan to move?
- How long have you been searching for a home?
- Have you received a preapproval letter from a lender?
Negotiate the Sale
Depending on the number of offers you get, you can negotiate the sale with the prospective buyers. And if you’d like to change the terms of the sale in the offer, provide a counteroffer.
Research On House to Close the Sale Properly
Finally, it’s time to close the sale. But it’s not as easy as such. It’s a legal process, and you may need to hire a real estate attorney to finalize the purchase agreement.
