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 advantages of selling a home privately and how you can get started.
Real estate agents What do you do?
A real estate agent is a person who helps homeowners go through the entire process of selling a home. A good real estate agent can help you connect with a whole 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 rather helps you through the sale from advice to contracts and everything in between.
There is nothing in the law that says you have to use an agent during the sales process. If you’re so inclined, you can do all the research to sell your home and handle the process yourself.
How much money can you save?
A real estate agent’s commission is typically between 5 and 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 home. For example, if you receive $150,000 for your house through 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 sales price of the home. So there is the potential to save thousands, even tens of thousands of dollars, depending on how much your home sells for.
Other reasons to sell with a FSBO process
Some homeowners like to be in control knowing that every part of the sales process is in their hands. There is a lurking fear among some homeowners that even though the real estate agent is receiving a commission, the agent is not properly 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 put in more time and effort in exchange for higher commissions, leaving smaller, less valuable homes gathering dust.
Is it right 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 real estate agent, you should keep in mind that it will take much more time and energy than if you had sold the traditional way. You’ll be doing something that other people have made a career of, so you have to be ready for a lot of work. The big reason you sell this way is because if you do it right, you can save yourself a lot of money in the process. You will do the listing yourself, do all the market research, schedule and meet the people for the showings, plus make all the phone calls to complete the sales process. Even if your state does not require a real estate agent, you will still need to get a real estate attorney to handle the legal side 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 your home quickly, consider contacting a real estate investor directly to see what they can offer you before heading to a real estate agent.
Resources
With the advent of the Internet, there has never been an easier time to sell your home on your own. FSBO sites are good places to look for advice, as well as a place to post your house. You can also use the same listing service real estate agents use by paying a small fee to get listed on the MLS.