House for Sale by Owner: A Real Estate Guide
Despite cooling down over the summer, the real estate market is still surging on an annual basis. In fact, the number of homes sold in 2021 is 16 percent higher than the prior year.
Home prices are also on the rise. The median home now sells for more than $356,000. This represents a 15% increase from the year before.
With home prices soaring, this means that real estate commission fees are increasing in unison. As a result, many people choosing to list their home for sale by owner (FSBO) instead.
Read on if you are considering listing your house for sale by owner. Explore topics such as house selling tips and the advantages of choosing FSBO.
What Are The Advantages Of Selling Without An Agent?
The primary reason that homeowners choose FSBO is to save money. The commission fees to use a real estate agency are up to 6% of the selling price. On the average $356,000 home, this equates to more than $21,000.
Also benefitting the FSBO community is a nationwide inventory crunch. The number of active home listings is down 23 percent from the prior year.
With fewer homes on the market, FSBO homes naturally receive more attention. Homes are selling faster than normal and frustrated buyers are increasingly desperate. Buyers are looking off the beaten path and more willing to search for homes not listed with a real estate agency.
Some people also like to have complete control over the process. With an FSBO, you make every decision pertaining to the sale of your home.
This increased control manifests itself first with the listing price. Typically, a real estate agent is going to perform a comprehensive assessment of the local market.
Based on recent sales of comparable homes, your agent recommends a selling price. Often, this price is intended to sell quickly and it is not uncommon for homeowners to disagree.
By going FSBO, you get to set the listing price. You also have more control over the negotiation process and are not influenced by an agent.
Also, you retain control over the showing process. You schedule when potential buyers can see your house. You get to decide which home pictures to publish and show the world.
Without a real estate agent, you can opt for a quick sale as well. There are companies that buy houses for cash quickly and in “as-is” condition.
What Are The Disadvantages Of FSBO?
Choosing the FSBO route does not come without accepting certain risks. When you hire a real estate agent, you tap into their professional network.
Your agent will set you up with a trusted real estate lawyer, title company, home appraiser, and more. They will hire a photographer to take magnificent pictures of your home.
They also utilize their vast marketing and advertising tools to raise awareness of your home. Your home will be displayed on their website and social media pages. Due to their established following, thousands of people will instantly see that your home is on the market.
By choosing FSBO, you forgo all of these benefits. While you can find experienced professionals, the burden is now on you to make a good hire.
You may also miss the real estate agent’s vast experience in the field. If problems arise during the selling process, there is no one to guide and advise you.
Lastly, the old expression is that time is money. Selling a house takes a lot of time. There are many forms that need to be prepared and filled out.
How To Digitally Market Your FSBO Home?
The internet and social media have made it easier than ever to select FSBO. You can market your home on social media. Facebook has community groups that are the perfect place to advertise that your home is for sale.
There are FSBO websites that have access to the Multiple Listing Service (MLS). This allows other real estate brokers to know that your house is available. By paying a small fee that is significantly less than real estate commission, buyers will be aware of your home.
Today’s buyer does not look for homes in the newspaper or other print media. They are using real estate websites and social media tools to browse listings. Those that choose FSBO can tap into this audience the same way a real estate agent can.
You should also think about hosting an open house. This is another thing that you can promote on social media and other community forums.
This is a great way to show the house to multiple buyers on the same day. It may be easier logistically than planning dozens of showings at different times and dates.
Who Do You Need To Hire?
There are a number of professionals to hire for an FSBO. A photographer is the first person to hire. With online and social media as the primary way people find homes, quality photographs are imperative.
A professional real estate photographer knows how to show off your home. For example, they will use a wide-angle camera lens to make your bedrooms and backyard appear larger than they actually are.
You will also need a real estate lawyer to see the contract through to closing. Once a contract is in place, your lawyer is the point person for any issues and other real estate milestones.
One of the best ways to sell a house quickly is to pay for a pre-sale inspection. By doing a preemptive inspection, you can find potential issues early.
This approach often saves money because you can address problems in a cost-effective manner. If the buyer’s inspector identifies an issue, their lawyer will want it fixed to their client’s satisfaction level.
Your Guide To Listing A House For Sale By Owner
You are now ready to list your house for sale by owner. House selling tips like hiring a photographer and paying for the MLS go a long way.
With the current market conditions, you may be able to sell your house quickly. The biggest advantage is avoiding the real estate commission fee.
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