Pros Of Going For Sale By Owner (FSBO)
Technology is changing how people do businesses in so many industries including the real estate market. Many homeowners no longer rely on a street corner “For Sale” sign or a newspaper ad placed by the real estate agent they hire. Rather, they are going FSBO (for sale by owner).
In fact, many homeowners are now bypassing real estate agents and brokers and selling their properties without the help of anyone.
Thanks to technology! Many homeowners now have access to several real estate marketing tools available to real estate agents and brokers. Think about the number of websites and apps on smartphones available for homeowners to list their homes directly and close the deal without a real estate agent or broker.
So if you’re planning to list your property anytime soon, odds are you could be considering a ‘for sale by owner’ (FSBO). But then what are the benefits of going FSBO compared to hiring a real estate agent?
Benefits of going FSBO
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Avoid real estate agent commission
A real estate agent commissions can turn out to be a huge burden for the average homeowner. Usually, the commission fee on a $400,000 home sale could be upward of six percent or just about $24,000. Watching your $24,000 disappear into thin air isn’t an easy pill to swallow. There are so many things you can do with such a huge amount of money, especially when you’re moving to a new home.
But if you decide to go FSBO, you can hire a professional photographer to take high quality photos of your home. Then list your property on several different websites and even on social media, get a good buyer, close the deal, and keep the commission to yourself.
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Make the most of low equity situations
Low equity situations are some of the best reasons why you should consider going FSBO. For instance, if you recently bought a house or for some other reasons your house equity is low. If you decide to sell the property but then hire an agent to help you out, you may have to pay some or even all of the real estate agent commission.
Let’s play this out in a scenario.
For instance, your property is worth $500, 000. But you owe $490, 000 on the mortgage. You’ll be left with $10, 000 on the equity. If you decide to hire an agent to help you market and sell the property for $500, 000, and after paying off the $490, 000 you owe, you’ll be left with a $10, 000 profit.
But then the agent will expect a six percent commission. That’s a whopping $30,000. Where will you get the money from since you’re only left with $10, 000? This is the best situation to go FSBO.
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Devote your time to the sale of your property
Once you hire a real estate agent, you’ll have to keep up with her schedule which could be very inconvenient for you and your family. Whenever prospective buyers show up to inspect the property, you and your family could be asked to stay away during the showing. This could be very stressful. Because the agent will most likely choose a day and time that’s convenient for him or her and not for you.
But if you decide to go FSBO, you can choose the most convenient time for the home tour. Your family will be better prepared and you’ll get the chance to answer all the questions of potential buyers. So you should consider skipping the middleman to make life more convenient for your family.
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Have complete control of the sale
When you decide to go FSBO, you put yourself in control of the entire sales process. You wouldn’t have to play puppet to anyone. You’ll decide how to market your home, how to price it, how and when to negotiate the sale, who to sell to, and when to sell. It’s your property and you’re your own boss.
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Learn the trade
Going FSBO gives you the chance to learn how the entire home selling or home buying process works. Once you go FSBO and get things right, you probably won’t need the services of a real estate agent whenever you have a property to sell or buy. Going FSBO gives you the opportunity to learn how the real estate market works. You’l also learn how to make the most of your property while it’s listed.