Why pay someone else to do something you can easily do yourself? You’ve been on the buying side of the deal which meant all fees were covered by the seller, but what happens now that you are the seller? The best thing for you to do is weigh all the options available to you can make an educated and informed decision, which is exactly why we have compiled the 5 things you need to know about FSBO’s.
1) What is an FSBO?
FSBO stands for "For Sale By Owner" which means you save the fees you would otherwise be required to pay to both your agent, and the agent representing the buyer.
2) What You Can Do, I Can Do Better
When choosing to sell your home yourself, you are choosing not to work with a professional real estate agent. Understanding what the role of an agent is will help you make an educated decision. Here are some of the things they take care of:
-
Determine the best asking price.
-
Prepare your home for sale and ensure it is prepped for showings
-
Review offers and handle negotiations
-
Help ensure documents are correctly handled and signed on closing
3) No Risk, No Reward
While sometimes taking a risk can pay off, you need to understand the risks involved before making a decision. See below for some of the risks to prepare for when choosing to sell your home yourself:
-
Pricing that could turn away potential buyers
-
Misunderstanding the legal matters disclosed in writing
-
Safety concerns with showing your own home
-
Improper negotiation can lose you money or include something unrealistic in the deal.
4) Preparation is Key
If you want potential buyers to see your home, you are going to need to brush up on your marketing skills! Yard signs, brochures, and online advertising are all ways to get the word out, but ensure you are considering the cost of this when weighing the pros and cons of selling yourself versus working with an agent.
In addition to marketing, you will also need to make sure your home is ready to show! Cleaning, touching up paint, and decluttering are all helpful tips to help you get started.
5) Legal Matters
Once you have a buyer that is interested in purchasing the home, legal considerations must be made. The buyer will submit an offer, and once the seller accepts, a contract will need to be signed by both parties. A helpful tip would be to hire a real estate lawyer to help with this step of the process. The benefit of working with an agent is there is a good chance they already have a lawyer they regularly work with to ensure legal matters are correctly taken care of.
