While having a realtor on your side has its benefits, there is the idea of realizing that as much as 7% of the profit from selling your home goes to them. Even for modest homes, the brokerage fees can easily account for over ten thousand dollars. This has led to a trend of houses being sold by the owner, or FSBO for short. While it can be profitable, it demands a lot of time and research to be successful.
Know What Your Home is Worth
First, you’re going to need to know your house’s fair market value or FMV. In order to gain that data, you should look at comparable houses for sale within your neighborhood and compare the pricing. An additional method is to call up a realtor and ask them to do a comparative market analysis on your home. While some will be wary of offering this information to someone trying to sell their home, be honest with them anyway; the good ones will help you out. With the information you gained from this light research, you should have a really good idea of what your home is worth.
Know State and Local Laws to Selling Your Home
The next, and perhaps the most grueling step, is to research state and local regulations concerning the buying and selling of property. You’ll also need to know a decent amount about how to draft a contract. If you are thinking of going without a realtor, you should strongly consider gaining the assistance of a lawyer. While a lawyer will charge for their services, the couple of hours needed for their advice will be considerably lower than a realtor’s fees. If you opt to utilize neither a realtor nor a lawyer, you’re going to be in for a bumpy ride; laws that codify the selling of property can differ greatly from state to state, and even from county to county. Law libraries aren’t exactly known for being an easy read, so proceed with extreme caution; it’s a lot easier to make a mistake here than you might realize.
Know When to Schedule Showings
The next thing you want to know is your own schedule. This sounds silly at first, until you remember that it’s going to be you selling this property. As such, it needs to be you that shows the property to prospective buyers. You can take time off from work if you have it to spare; just realize that unless that time is paid time off, you’re losing money every time you show the house. While minor individually, such losses can cut into the money you are attempting to save, so keep it in mind. Also, realize that you’re going to need to be comfortable with being alone with strangers as they are walking through your house. This can be a deal-breaker for some.
Be prepared to dedicate a lot of time and effort in the process of selling your home in the FSBO market. While the task can be daunting for some, others take pride in accomplishing such things themselves. It is highly recommended to gain the service of someone with a legal background before you proceed, but there is no reason that you can’t sell your home by yourself if you truly desire to.