Nowadays everyone has seen the signs in the front yard that say "For Sale By Owner," but what does this really mean? Is it going to be a legally correct deal for both parties? Does it really save money? The answer to both of these questions is, yes, but it does require a little bit more work from everyone involved˳
For Sale By Owner means simply that there is not going to be a Realtor involved in the process˳ The owner will handle everything directly from showing to negotiations˳ There is a range of about 10-20 percent of homes sold with a FSBO sale and the number goes up and down from year to year˳
Why Would You Sell With A For Sale By Owner (FSBO)?
From the sellers point of view the cost involved with selling this way are greatly reduced˳ When you deal with a real estate agent the commission cost alone can be between 5-7% of the final sale price of the house˳ As an example, if you had a home selling for 200K at 5% commission it would be $10,000 in commission fees˳ If the seller is able to sell their home without the use of a Realtor they would save all of that money˳
Why Buy A FSBO Home?
From the buyers point of view the process of buying is much the same as long as you are an informed buyer and know what is a good deal and what is not˳ The one big benefit is that you have direct communication with the person selling the home˳ Because there is no middle man involved you can call the seller directly without having to deal with a real estate agent as a go-between˳ This means that buying this way can often take less time then if there is an agent involved˳
Things To Think About
For everyone involved it is good to have a team of people helping with the sale even if no agent is directly responsible˳ Having a real estate lawyer on your side can help a great deal and will typically only cost a couple hundred dollars, but it will be some of the best money you spend in the entire process˳
Another thing to keep in mind is the price˳ As a seller it is easy for you to overprice your house to get the greatest profit on the sale of your home˳ For the buyer you have to remember that you will have to do more work yourself because there is no one guiding the process˳ For both parties it is important to ensure that you have done your homework on the local markets and ensured that you have the correct price on your home˳ Getting a valuation report can help the process and ensure that you are setting a good price for your home that will be competitive with the rest of the market˳
Resources
As of late there has been a lot of information put out about how to deal with the ins and outs of this type of deal˳ Sites like ForSaleByOwner˳com and Zillow˳com have a huge list of different FSBO homes and tips and advice to make the process easier˳ Going to library or other book store will show you that there are a lot of books on the subject as well˳ Buying and selling a home is one of the biggest financial transactions of most peoples lives but it does not require a real estate agent if you are willing to do some more of the work yourself˳
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