Thursday, July 29, 2010
The Advantages and Disadvantages of FSBOs
Many home owners think about selling their own home but relatively few attempt it. Why? Because it's an extremely time-consuming and often exhausting process, especially if you're working a full-time job! It's the Realtor who takes this burden off your back.
Nonetheless, I don't discourage you from putting your home on the market and attempting to sell it yourself.
But before you do it, I do encourage you to become extremely knowledgeable about the process and aware of the both advantages and disadvantages of it.
Below, I've provided information on the benefits and drawbacks of doing a "For Sale By Owner" (FSBO) sale.
Read it carefully and then make your decision!
Advantages of Selling Your Own Home
Of course, the biggest advantage a FSBO is that there's no commission to be paid to a Realtor. You get all the proceeds from the sale, minus any marketing costs you incur.
A second advantage is that you have complete control of the transaction. You don't have to rely on anyone else. You're totally independent.
A third advantage concerns your equity. If it's low, you have the possibility of selling your home without having to write a check.
A fourth advantage is that you don't have to rely on a realtor to schedule showings, answer inquiries, etc.
Disadvantages of Selling Your Own Home
Perhaps the greatest disadvantage is the tremendous amount of time you have to put into the sale.
It's a time-consuming process to do all the paperwork, the marketing and advertising, the showings, etc. by yourself - not to mention the hours it takes to get acquainted with all the legal, financial, and other issues. You must be prepared for this.
A second disadvantage is the costs in terms of marketing and advertising. If you don't exactly what you're doing, this can be very expensive!
A third disadvantage is that you won't have access to the Multiple Listing Service (MLS) unless you pay a fee to have your listing included. If you don't pay that fee, then you'll end up hunting for buyers one at a time, a very inefficient, ineffective, and frustrating process.
The fourth disadvantage relates to your knowledge of the market. If you're not knowledgeable about it, you may not price your house correctly.
That is, you may underprice it or overprice it. If you underprice your home, you lose money. If you overprice it, you lose buyers. By the same token, if you do find a buyer and you're not experienced at negotiation, you could be taken advantage of.
A fifth disadvantage relates to a belief of some buyers. They believe that since you're selling the house by yourself and not paying a commission, then they're the ones who should get the savings instead of you!
My Advice: Do your homework before considering selling your home by yourself! And, if you do decide to go the FSBO route, be fully prepared in all aspects of home sales!
If you'd like more information and advice on selling your own home as well as my real estate services, contact me.
Posted by Vyral Marketing at 2:36 PM