Thinking of selling your home, but do not want a real estate agent to handle the sale; then For Sale By Owner is the way to do it. By selling without a real estate agent, you can reap some significant benefits - including saving on agents commission and a maximum return on your home.
Yet, the road to FSBO can be challenging and confusing when dealing with the real estate vocabulary and legal paperwork.
Let us be clear from the outset, there are no laws requiring buyers and sellers to use real estate agents when buying or selling a house.
Here are a few of the pros in favor of selling your house without an agent.
1. Lower commission fees: Real estate commissions fluctuate from locale. Most range from 2.5% to 6% with half going to the buyer's agent and the other half to the seller's agent. In FSBO transactions, commission only need to pay the buyer's agent.
2. Total control: When selling the house, you have the last say on everything.
3. Insider knowledge: Potential buyers always want the inside 411 on the neighborhood and the service providers in the area.
Along with the pros FSBO does have its cons.
1. Limited pricing data: Real estate agents have access to current market data and can provide a comparable market analysis price for your house.
2. Lack of knowledge: This includes staging tricks to legal paperwork and technical aspects of the real estate transaction.
3. Reduced market pool: Statistics show that about 28% of buyers find their homes through real estate agents which reduces a FSBO exposure to the larger buyer's pool.
Bottom Line: It is important for you to recognize the pros and cons of For Sale By Owner before you start the sale process.
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