Selling your home can be one of the most rewarding, yet stressful processes you can go through. This is especially true if you decide to forgo the option of utilizing the services of a real estate agent. This is what’s known as For Sale By Owner (FSBO).
Many people weigh the options of selling their own home versus getting some help. But what are the factors that can influence your decision in either direction? It’s important to have all of the information when making an important decision like how you are going to navigate one of the largest sales you will ever make.
The easiest way to figure out which way you want to go is to weigh the positive and negative aspects of selling your own home. So, we’ve put together a list of the pros and cons you can expect should you decide to go the FSBO route.
Pros
- Saving on the real estate commission. This is the main reason people decide to sell their own home. FSBOs don’t use a real estate agent, which means they save on the commission that is generally paid for their services. A real estate agent will often charge a six percent commission based on the sales price of the final home sale. So in this scenario, if you sell your home for $250,000, the real estate commission will be $15,000. This is the money you would be saving if you sell your home on your own.
- Ability to reduce the price of your home. This might not sound like a great asset, but it is. Saving yourself the cost of a real estate agent means you have a window of profit to play with. And a home that is priced lower than comparable homes will sell much quicker.
- You’re not dividing your time. A real estate agent will likely have multiple clients. This means they can’t pay strict attention to the sale of your home. Selling your own home means you can devote a large portion of time to finding a suitable buyer.
- You can wait for a qualified buyer. Increased flexibility means you can wait for the perfect buyer. The closing process can be daunting, and many sellers like to get it over with even when they have the help of a closing attorney. This flexibility gives you the option of waiting for a buyer that could possibly pay in cash and close out the transaction quickly.
- They can meet your demands instead of the other way around. Many buyers have specific needs from the houses they buy. And sellers often try to accommodate these needs at the urging of their real estate agent. But you don’t have to do anything you don’t want to when you sell your own home. Maybe you have a specific date you’d like to move, or perhaps you simply don’t want to tend to unnecessary inspections and demands from a potential buyer.
- You can get a real estate agent at any time. Starting out the process as an FSBO doesn’t mean you can’t change your mind. You can always enlist the help of a real estate agent if you try your luck and are unsuccessful.
Cons
- There’s no distance between the buyer and seller. Many homeowners don’t want to navigate the interpersonal aspects of a sale. And without a real estate agent, you’re going to need to field every question and call from potential buyers.
- Marketing a home is difficult. Simply put, there are a lot of homes out there. And even though Nashville has a lot of people moving to the city every day, it can be tough to set yourself apart. A real estate agent will have the built-in mechanics of home sales through their experience with a real estate agency.
- Dispute resolution is more difficult. Disputes can occasionally be an aspect of home sales, which can be tough. Real estate agents can navigate these difficult circumstances. The services of an experienced closing attorney can also be a great help when these situations come up.
- You probably don’t possess a lot of industry knowledge. Real estate agents are professionals. This is what they do all day, every day. And you will probably still miss some things even if you research your market. For instance, pricing your home incorrectly can have some negative effects down the road.
- The closing process can be difficult to navigate. The general processes of selling a home—securing inspections, appraisals, and proper closing documentation—can be very intimidating for FSBOs. However, this can be mitigated with the help of an experienced closing attorney.
Rochford Law & Real Estate Title helps people navigate the FSBO closing process every day. Utilizing the services of an experienced closing attorney will save you the cost of a real estate agent while also saving you the chance of making a mistake in a very big transaction.
