Purchasing or buying a home might be one thing you’d have to do at some point in your life. It’s either you’re moving to another neighborhood, or you’re downsizing to a smaller home. Whichever your reason is, you might be considering to sell your house to buy a better home that suits your tastes. Most home sellers would seek the assistance of a real estate agent to avoid all the hassles involves in such transaction. However, you don’t necessarily need a realtor to get the job done, and that’s the truth. You might need the help of an attorney for the clean deed of your property, but you’re not required to have some representation when selling.
There has been 8% of sold homes for sale by owner (FSBO) in 2014 according to data collected by the National Association of Realtors. This means that selling your home by yourself is virtually possible to do. If you’re thinking about carrying out a DIY sale, you need to know what are the advantages and disadvantages you may expect during the process.
Pros of FSBO (For Sale By Owner)
Avoid paying real estate commission.
Realtor commissions are expenses that you should cover during a sale, and they are not cheap. On most cases, you’ll need to pay 6% of the selling price which will be split evenly between the buyer’s agent and your agent. To sort out the best asking price for your property, you need to consider the commission fee involved to finalize your expected income. It should be enough to pay the remaining balance of the mortgage and of course, the real estate commission. If you don’t want to spend more money or if you don’t have much equity in your home, then doing a for sale by owner would prove to be advantageous.
The Existence of Online Resources
Before the innovation of technology, a home seller would rely on yard signs to advertise his or her property. Now, there are some online resources that you could utilize to get the word out about your home. You can search and print for legal forms about real estate purchase agreements on some websites and even ask a title insurance attorney about any legalities involved in the transaction. There are also some sites available where you can submit photos of your home and include vital information about the house such as square footage and the number of rooms.
Cons of FSBO (For Sale By Owner)
Deal with all the paperwork.
Selling your home is a complicated process. There’s a lot of negotiation involved, loads of paperwork and some legal terms might be overwhelming. You’d have to review the contracts by yourself and ensure that each suits your requirements. If you know how to do it efficiently, it might be simple for you. However, if it’s something alien to you, you might find yourself in a difficult situation. A realtor can do all of those above and will always do what’s best for you.
DIY Home Tours.
If you have to sell your property by yourself, you’d be in charge of doing home tours to show off your home. Aside from negotiations and marketing, this would be the task that would take up much of your time. The problem here is your schedule might not meet the timing of your buyers. This can give limited exposure to your house and can slow down the whole process. An agent, however, can coordinate open houses and give time for prospective buyers. It would be plausible if you have nothing to do most of the time, but if you’re pretty busy, consider hiring a real estate expert to get it all done.