FSBO – For Sale By Owner – has become more and more popular, especially when considering recent data that shows that real estate agents are able to get a higher price for their homes than similar properties that they sell for their clients. This is common sense, as there are advantages a licensed real estate person has over a first time home seller.
These advantages often are clear disadvantages to someone who is considering FSBO as a serious option to a real estate agent.
A good real estate agent has done extensive research on the area, general property values, and what a reasonable price for a home will be. For the average person, this will take more than a small amount of time, and that presumes they know where to get the best information.
Once the information is found, then it needs to be analyzed in order to be useful to the seller. Should the research and analysis be faulty, it will result in taking a longer time to sell the home or getting less for the property than enlisting the services of a qualified real estate agent.
Laws concerning the sale of property are considerably different around the country, so knowing them is essential before beginning an FSBO approach. Some laws are different from county to county or even town to town.
If a seller is not knowledgeable of the legal details of their particular state, an agreement to sell the house could collapse and further complicate what began as a simple home sale.
The whole idea behind the FSBO approach is to make more money – or save money, depending how you look at it. However, there is an old saying, that time is money.
The amount of time someone spends doing all the groundwork and making sure the proper paperwork is correctly filled out and completed also has a value. What a person determines their time is worth needs to be added to the general costs of the effort.
It is almost certain that a lawyer will be involved in the FSBO process, and that can be the biggest cost to the owner. Depending on the value of the property. a real estate lawyer and a tax lawyer may be necessary to be sure, all the loose ends are tied up.
Whoever the house is sold to, the seller will need to thoroughly check out who the person is and their capacity to adequately finance the purchase. It is common for financing agreements to fall through at the last minute, even with experienced real estate agents. Going it alone likely increases the chance that something will go wrong during the financial wrestling prior to the sale.
Selling a home is a time, money, and legal journey that is not for the inexperienced. There are those who have successfully used the FSBO approach and ended up with a substantial profit for their efforts. However, before thinking too far ahead, a careful assessment of your own qualifications is advised.