For Sale By Owner Pros & Cons
You’ve decided it’s time to sell your home and it’s tempting to save a few bucks or increase your profit margin by doing it yourself.
On the plus side, for sale by owner (FSBO) properties allow the seller to call all the shots. You decide the asking price, the amount of flexibility in negotiating and even the times you want to show the house. While a realtor can learn the plusses and minuses of the home, the resident has lived them. You can showcase the house’s best selling points from a position of authority. In this Internet age, there are a number of resources available to FSBO sellers that can provide guidance every step of the way. And the biggest attraction is still the financial factor. FSBO transactions allow the seller to pocket the (usually 6%) commission fees or reduce the asking price to a more competitive number and still make a comparable profit.
Of course, real estate can be a complicated, high stakes environment. Realtors have a number of benefits to offer. Their experience and expertise can help you set a proper price and advise on touch-ups that can increase the home’s value. They usually have a sales network, contacts, marketing resources, an understanding of what the market will bear and time dedicated to reach the desired outcome. They also provide knowledge in areas such as selling procedures, paperwork and legal considerations that inexperienced sellers may lack.
If you have time, confidence and general understanding of the home selling process, FSBO might be a financially beneficial option. Otherwise, you could be better served following the more traditional course.