If you want to sell your home, you might be considering the “For Sale By Owner” route — or “FSBO” as it’s colloquially known. Selling your home as a FSBO can seem like the ideal way to save money, but homeowners often underestimate how complex the home selling process is.
Although selling your home without the help of an agent could save you thousands in commission fees, it can also be extremely stressful and time-consuming — especially if you don’t have adequate knowledge of the real estate sales process.
Here are three things that all homeowners should know before deciding to sell your house as a FSBO.
Real Estate Laws and Regulations
Real estate laws differ from state to state and even between counties. You can be at risk of liability if you don’t adhere to the local rules and regulations in your area. For example, some states require sellers to disclose known material defects of their home. This is often done with a document known as a “Sellers Disclosure.” Put simply, as a homeowner, you may not be aware of all of the real estate laws that affect your home. It’s important to educate yourself if you want to limit your liability.
Sales Price and Marketing Strategy as a FSBO
Accurately pricing your home is essential if you want a fast sale. No one wants to leave money on the table, however a home listed too high can also be an expense. From loan payments to utilities and general upkeep, when your home sits on the market, it costs you money.
If you want to sell your home quickly, it’s crucial that you list it at market value. One way to determine your home’s market value is to compare it to other homes in the area. This can you a good idea of how much your house might be worth.
In addition to accurately pricing your home, it’s also crucial that you market it appropriately. Different homes attract different buyers, so it’s vital to market your house to its intended audience. You have to consider who your potential buyer is, and what their real estate needs are. By having a proven marketing system, you can target the optimal buyer pool and ensure a faster sale.
FSBO Negotiation Tactics
If you’re selling your home as a FSBO, you should be prepare yourself to deal with many different people. Whether you’re hosting open houses, showing your property, or negotiating with potential buyers — selling real estate is a people business and requires lots of social interaction.
When it comes to selling your home without the help of a professional, it’s crucial that you’re confident and understands the nuances of negotiation. For example, many buyers choose a real estate agent to represent them and present their offer. Real estate agents broker many deals a year and are skilled negotiators, which can intimidate some sellers.
In addition, if you’re working alone, it’s essential to be able to understand the different offers that buyers present, as well as being able to interpret the terms. Buyer financing can significantly affect the strength of an offer, determining whether you choose to accept it. Understanding the basics of real estate contract law is invaluable when selling your home as a FSBO.
How To Sell My Home Without An Agent
Many homeowners are opting to sell their home without an agent. In fact, according to the National Association of Realtors, around 11% of home sales in 2018 were FSBO. However, if you want to sell your home without an agent — but don’t want to go the FSBO route — consider selling your home to a cash buyer. Many companies will buy your house “as-is” for cash, saving you thousands of dollars in agent commission. This can save you the time and effort of selling your home on the open market.