Selling a home For Sale By Owner can either be a great decision or the worst. The real estate industry can be one of the most unethical industries out there. But that, in no way, suggests that agents are never good or honest. Some agents do actually take pride in maintaining high as well as ethical standards.
The Benefits of Selling For Sale By Owner
People sell FSBO in order to save all or a part of the traditional 6% that goes straight to the pocket of a Realtor. So although people selling FSBO pay a buyer’s agent, some several thousand dollars are still saved.
The Challenges and Risks of Selling FSBO (more than just the obvious ones)
Literature lays bare that 86% of the people who begin selling FSBO give up soon since they lose confidence. Such people then turn towards Realtors. So what exactly are the disadvantages of selling FSBO? FSBO is stressful because the seller needs to make sure that the house is priced correctly along with doing all of the paperwork. Besides, the seller is the one who is required to make the marketing materials and get online anywhere they can. A seller furthermore needs to deal with showings without having a lockbox tied to the MLS and so on. Nonetheless, you should not lose heart as such challenges can easily be overcome.
When houses for sale are priced or ‘Comped’, there are several aspects to look at. Apart from the market value of similar homes in the area, things that are taken into consideration are as follows: (1) the price of the home and (2) the commission of the real estate agent. Let us now take an example. If a home has been priced at $200,000, the buyer should know that the seller is getting only $188,000. The rest $12,000 is kept for the agent involved.
However, if a $200,000 home has no agent involved, what should a buyer do? The buyer should, at all cost, bear in mind that the home is overpriced because its actual price should be somewhat around $188,000. There are times when the seller would try to justify the selling price. Yet a savvy buyer should talk regarding:
1. A real estate agent is endowed with the responsibility of making sure that everything is being done correctly. He also checks that no critical details are being disclosed. Hence when an agent has been done away with, the element of risk as well as liability to the buyer increases.
2. When an agent is being employed by a buyer, the contract will more often than not make clear that the agent collects a 6% commission. The agent should ideally try to collect the sum from the seller, but the buyer is entitled to pay any unpaid amount. Under such circumstances, a buyer might be left to pay up to a 6% premium!
Depending on your situation, you may finally choose any of the sales methods. This article primarily intends to disseminate information among sellers.