Selling your home is never an easy decision, but, when the time is right, all options should be weighed. Most homeowners, 93% in fact, follow the traditional real estate agent path, while only 7% sell the home themselves. Prior to embarking on a For Sale by Owner (FSBO) adventure, it is important to research all aspects of real estate sales.
For Sale by Owner (FSBO)
Owners that sell their own homes are generally looking to save money. These are the costs usually paid by the seller
Buyer’s and seller’s agent’s commission, 3% each property Transfer Tax, Recording fees, Repairs identified in Home Inspection, and Title insurance.
FSBO sellers will only be exempt from the seller’s agents commission, and the buyer’s agent if they prefer to only sell directly to a buyer. It is important to note, that a seller that doesn’t research the market well enough can easily price the home too high so that it doesn’t sell or too low so that they lose more profit than they saved by not using an agent.
Prior to placing a house on the market, an owner should do proper research on real estate sales in the area. Things to know:
Selling price for similar homes
How long houses sit on the market best season for sales what home improvements add value which home improvements decrease value legal terminology in regards to real estate necessary papers to file at close
If a home seller decides not to use a real estate agent, it is recommended to use a lawyer to ensure that the transaction is legal and legitimate.
Proper home staging and photography can help sell a home quicker. Potential buyers should be able to view the home in person or online and picture their lives in it.
Give the house a deep clean, Clear cabinets, drawers, and closets of all but essentials and wipe them down. Remove gunk and buildup around plumbing, water heater, and furnace. Have a heating/AC system professionally cleaned and maintained
- Remove excess furniture.
- Store knick-knacks
- Minimize pet and children’s toys and accessories.
- Remove all but essential items
- Remove family photos
- Remove unique and unusual art.
- Remove souvenirs from vacations.
Buyers should be able to project their personalities onto the house.
- Curb Appeal
- Weed and trim hedges
- Plant flowers
- Sweep walkways
- Clean concrete and decking
- Remove debris
If the owner is selling the house, it is necessary to be available to show the house on the buyer’s timetable. Open houses should be well advertised and visitors should be able to give feedback, formally or informally.
Remove barriers to showing the home. The more open your schedule, the more potential buyers will visit. Don’t hover or rush. Keep a comfortable temperature, with heat, AC, or open windows. Turn all lights on. A light, crisp smell like linen or fresh rain is preferable to a heavy, identifiable smell like pine or vanilla
Closing the final stage where a property title is exchanged for money. This is the most important part of selling a home by owner, and everything must be in order before sitting at the table with the title company.
Hire an attorney that specializes in real estate or learn the laws.
- Order title and arrange for escrow
- Pass appraisal and inspection
- Prepare paperwork
- Property tax
- Loan information
- Property survey
- Homeowners insurance
With proper research and little extra work, it is possible for a homeowner to sell their house without a real estate agent. As with any financial or legal endeavor, it is important to weigh all the options and potential outcomes in a detached, just-business manner.
Selling your home for sale by owner (FSBO) can be accomplished without the stress by selling it directly to sell house fast companies actively buying real estate in your area. If you follow the FSBO steps outline to sell your house fast you will get it sold faster than if you were to list it with a Realtor.