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| More rates and news from Information On For Sale By Owners(When you go to sell your home you have two main options two choose from regarding the transaction. )
You can hire a real estate agent to sell your property for you, or you can sell the property by yourself, also known as a for sale by owner (FSBO).
The choice is up to you, but obviously, selling the property on your own without any representation is going to require a bit more work than hiring an agent would entail.
But some people find that FSBO work quite well for them and would not conduct a home selling transaction by any other means.
The first obvious perk to FSBO is that you save money. Normally, homeowners are required to pay their real estate agent a six percent commission. FSBOs can eliminate this fee completely, thus saving quite a chunk of money.
An article posted on fsboamerica.org, “Sell my house without a realtor,” discusses the various options you have when selling your home without an agent.
First, let’s explain the FSBO in detail:
As mentioned before, money is a huge factor in this equation.
“The basic idea behind being a FSBO seller is to save money. Avoiding the payment of real estate agent commissions saves the money. In the typical real estate transaction, a real estate agent will get a six percent commission. If you hire a real estate agent to sell your home for $500,000, the commission will be a whopping $30,000. That represents a lot of equity and mortgage payments. From a financial sense, being a FSBO seller absolutely makes sense.”
For people who know a lot about home selling transactions, or are confident that their home will be easy to sell, FSBO may seem like an obvious choice.
But in today’s market, even the most wonderful home available on the market may not bring about a single buyer. We are definitely not in the same market we saw just last year, which makes FSBO transactions a little more risky.
“An insanely hot real estate market has made realtors somewhat irrelevant in many parts of the country. For instance, homes in San Diego, California were known to be on the market for less than two weeks on average in early 2005. Keep in mind, this was the average time it took to sell a home including the run down messes. In such a market, many homeowners started wondering why they were paying six percent commissions to a realtor who didn't have to do much.”
If you want to sell your home without an agent, there are also “FSBO kits” available that comes with many of the papers and documents that are necessary in a transaction.
There are also many websites and other venues out there that will list your property for a minimal charge.
Marketing the property is very important in a FSBO, because there is no agent pushing the sale.
“The decision to sell you house without a realtor is one you should make carefully. If you're comfortable with the sales process, going FSBO makes all the sense in the world. If you're not comfortable with the negotiating process, then you may want to consider using a realtor. Ultimately, your first step should be to buy a FSBO book in your local bookstore and read up on what is involved.”
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