There has been an emerging trend in the housing market where homeowners are taking it upon themselves to sell their properties without the enlisting the help of a licensed real estate agent – a trend called “for sale by owner” or FSBO (pronounced fizz-bow).
At first glance, selling your home on your own seems like a great way to have more control on the process and save thousands of dollars by eliminating agent’s fees. You need to have the ability to calmly and effectively manage emotional, complex transactions such as the sale or purchase of your home.
We’ve already discussed the benefits and drawbacks of buying a FSBO home. We will explore this topic to see if we can help you sell your home without the aid of an agent.
What are the best ways to sell your home with no realtor?
There are many steps to follow in order to quickly sell your house. The success of the FSBO route depends entirely on you. These are some things you should consider if you’re planning to sell your home yourself.
1. Make your property stand out in the best possible light
A good first impression is key to selling your house. If the property is well maintained and has a welcoming atmosphere, potential buyers will feel attracted to it as a place to call their home. It is possible to attract buyers to your property by presenting it in a positive light. Before you list your home, ensure that all repairs have been done.
Staging your home is another way to make it stand out. Styling highlights your home’s strengths while minimising its weaknesses. It doesn’t cost much to stage your home. You don’t have to hire a professional stylist to stage your home. There are many other options.
2. Set a realistic price.
Experts say that homeowners selling their property are more likely than not to set realistic prices. If the price is too high, your home might stay on the market for longer. If your home is on the market too long, buyers may start to suspect something is amiss.
Experts suggest that you investigate comparable properties in your local area to help determine the true value. It is also advisable to get a professional property valuation, so you can have an accurate estimate of your home’s value. An accurate appraisal of your home’s value will allow you to market it effectively and help you position yourself for negotiation.
3. Promote your home
Prospective buyers look online first when searching for a house. Many FSBO websites allow you to list your home for a minimal fee or charge.
Marketing is essential. If you can afford it, hire a real estate photographer to capture your property’s best features. Professional photos can attract more inquiries online. Give a detailed description of the property. You should include details like the number of rooms and size of your house. Important points such as recent renovations should be included. It’s also possible to include nearby amenities like schools, hospitals and shops.
4. Organise home inspections
A house inspection is an important step in the process of buying one. Buyers will need to be invited to your home. Buyers may need to visit your home after hours or even be absent from work in order to arrange inspections.
During an inspection, you should be ready to answer any questions. This where being the owner/seller reaps benefits as no one knows more about the property – and perhaps the neighbourhood – than you.
5. Negotiating with homebuyers
One of the biggest advantages of FSBO is the ability communicate directly with the buyer. Negotiating the sale price is easier. The face-to–face meeting with the buyer makes the transaction more personal and allows both parties to form a bond. This can result in a win-win situation for you and the buyer – the key is to keep an open-mind and be reasonable.
6. Finalising contracts.
Once you have reached an agreement on the price, it is time to sign the contracts. There are two ways to go about this task – you can either do it on your own or enlist the help of a licensed conveyancer or solicitor. Each option has its advantages and disadvantages. All it comes down to how you handle any problems that may arise.
What are the risks and benefits of selling your house yourself?
Although selling your home on your own may bring you some great rewards, there are potential dangers. Let’s look at some of them:
Reward: You can save money on agent’s commissions.
One reason sellers choose FSBO is to cut costs by removing their agent. Let’s face it, enlisting the services of a real estate agent often comes at a steep price. Agents are typically paid between 2 to 3 percent of the property’s final sale price. You should budget between $12,000 and $18,000 for commissions if your home sells for $600,000. This expense can be avoided by selling your home yourself.
Risque – Emotions can cloud judgement.
Because your home is where so many memories are made, selling it can be challenging. You will have a difficult time finding a buyer if your objectivity is lost during the transaction. It is important to be flexible, open to constructive feedback and to listen to others.
Although you may have an established price for your house, the market might suggest a lower price. It is important to be flexible. Flexibility can help you sell your house by being open to other offers.
Reward: You have more control over the transaction.
When selling your house, you have greater control and transparency. It is possible to see how many people visited your open house as well as how many inquiries it has received. It will allow you to collect buyer feedback as well as manage your expenses. Sometimes, a buyer will take over the whole process. This can help you sell your property quicker. In contrast, real estate agents handle several listings simultaneously.
Risque – It’s possible you don’t have the right skills to do the job.
Selling your property can be complicated and requires an in-depth knowledge of the housing market, as well as the processes involved. If you don’t have enough knowledge about the market or the selling process, the FSBO approach is a risky one. For smooth paperwork completion, you will need extensive experience. If you aren’t familiar with the process, you could make costly errors or delay your paperwork.