Things To Know Before Choosing FSBO
For Sale By Owner is often viewed as the smartest way to make more money on your home. Eliminating realtors’ fees makes sense, right? How hard can it be to schedule and conduct showings of your own house? Well, FSBO transactions are actually a lot more difficult than you can imagine at first glance. It is important to weigh the pros and cons before committing one way or the other.
FSBO PROS
Control: You have control over when people will be in your house. No more last-minute, surprise visits.
Enthusiasm: Nobody is as enthusiastic about selling your home as you are. With the current glut of houses on the market, realtors may be distracted and spread thin.
Competitive: With the savings on seller’s agent commission, you can offer a slightly more competitive buyer’s agent commission to entice more foot traffic.
No pressure: You are under no pressure to reduce your asking price, although this can be a double-edged sword if you priced too high to begin with.
MLS listing: Now is the most glorious time to do FSBO because you can get an MLS listing through a flat fee broker, without relinquishing control.
FSBO CONS
Fewer contacts: A realtor, particularly a well-seasoned veteran, will have more contacts in the market and may even have the perfect buyer waiting in the wings.
Less expertise: A realtor knows all the tricks to sell a home. Again, this is particularly true of a well-seasoned veteran who has been on the housing market roller coaster ride before.
More work, less time: FSBOs are a ton of work and stress. You must schedule the showings, hold the open houses, coordinate marketing and research the market to make sure you are pricing competitively. You must also handle the oft-intimidating negotiation phase all by your lonesome.
Who’s in your corner? FSBOs have a reputation for being underpriced, another reason to do research before deciding the asking price. As a result of this perception, FSBO sellers may be seen as easy targets to be taken advantage of. Have an attorney, banker, property inspector and appraiser all in on the process to protect yourself. The first two will help during the closing phase to ensure legalities and financial matters are in order. The latter two will help back up and justify your asking price.
