Many people who are ready to sell their homes think that For Sale By Owner (FSBO) is the way to go. After all, you get to cut out the real estate commission, so technically you can sell the home yourself cheaper and keep all the profits.
Many do not realize the headaches and costs of selling by owner. Certainly, you cut out the commission, but usually the realtor just adds this 5-6% to your asking price so that the buyer actually pays the commission.
By selling yourself, you assume all the costs related to advertising. A simple sign in the front yard just will not get the job done. What ever prospects you get are usually bargain hunters who see the sign and immediately think it is a distressed sale. Many of the prospects are not qualified and are merely lookers who also have a house to sell before buying yours.
You also are the one to show your house to prospects. It is true that this way you can set your own time for viewing, but you may find that it really interferes with things that you really want to do.
Another thing to consider is that unless you are well-versed in housing values in your neighborhood, you may over- or under-price your house. An overprice will result in your house being up for sale for an extended period of time. An under-price may result in a fairly quick sale, but you will have lost money that was left on the table so to speak. You will have also devalued your neighbors’ properties, as real estate values are often set by comparable sales within a neighborhood.
If you do make a sale, you then have to worry about what information must be disclosed to keep you within the law. There are certain disclosures, such as a leaky roof, foundation settlement repairs made after storms and others. Many of these will come out during an inspection of the house, but if not disclosed or discovered before closing you may leave yourself open to a lawsuit.
A realtor will be able to advise you as to where you should price your house. He will be familiar with similar sales in the general area, and if not familiar, will research similar sale. He will also know exactly what information needs to be divulged to keep you legal.
With a realtor, you do not have to worry about advertising costs, showing the house or entering negotiations until the end. A realtor will be able to show and negotiate on your home without an emotional attachment. She will want to sell it for the best possible price, as this is the way she makes her living. She will do his best to get the figure that you are expecting to net. She will pre-qualify prospects, get them signed and point them into the right direction for financing. She will see your sale all the way through closing. All of this is included in the commission that you did not want to pay. When you consider all of this, a realtor’s commission may well be worthwhile.
Many do not realize the headaches and costs of selling by owner. Certainly, you cut out the commission, but usually the realtor just adds this 5-6% to your asking price so that the buyer actually pays the commission.
By selling yourself, you assume all the costs related to advertising. A simple sign in the front yard just will not get the job done. What ever prospects you get are usually bargain hunters who see the sign and immediately think it is a distressed sale. Many of the prospects are not qualified and are merely lookers who also have a house to sell before buying yours.
You also are the one to show your house to prospects. It is true that this way you can set your own time for viewing, but you may find that it really interferes with things that you really want to do.
Another thing to consider is that unless you are well-versed in housing values in your neighborhood, you may over- or under-price your house. An overprice will result in your house being up for sale for an extended period of time. An under-price may result in a fairly quick sale, but you will have lost money that was left on the table so to speak. You will have also devalued your neighbors’ properties, as real estate values are often set by comparable sales within a neighborhood.
If you do make a sale, you then have to worry about what information must be disclosed to keep you within the law. There are certain disclosures, such as a leaky roof, foundation settlement repairs made after storms and others. Many of these will come out during an inspection of the house, but if not disclosed or discovered before closing you may leave yourself open to a lawsuit.
A realtor will be able to advise you as to where you should price your house. He will be familiar with similar sales in the general area, and if not familiar, will research similar sale. He will also know exactly what information needs to be divulged to keep you legal.
With a realtor, you do not have to worry about advertising costs, showing the house or entering negotiations until the end. A realtor will be able to show and negotiate on your home without an emotional attachment. She will want to sell it for the best possible price, as this is the way she makes her living. She will do his best to get the figure that you are expecting to net. She will pre-qualify prospects, get them signed and point them into the right direction for financing. She will see your sale all the way through closing. All of this is included in the commission that you did not want to pay. When you consider all of this, a realtor’s commission may well be worthwhile.
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