For Sale By Owner (FSBO)
FSBO (famously pronounced “fizzbo”) is the abbreviation of “For Sale By Owner”. In real estate, For Sale By Owner (FSBO) describes the selling of a property without help from a real estate agent or other representative. Homeowners will typically promote their homes via websites, word of mouth, and more.
In the past, home buyers and sellers have traditionally used real estate agents to take care of all the details of the transaction from beginning to end. However, technology has made it easier than ever to access information online whenever you want. You can find real estate listings, financing information, home inspectors, attorneys and more at your fingertips. It’s these resources that empower everyone to take advantage of all the benefits FSBO has to offer.
So How Do I Benefit From FSBO?
Those who have done it before are eager to do it again, and it’s easy to see why. The most obvious advantage of the For Sale By Owner process is that there are absolutely no agent fees involved.
Real estate agents work for a commission of the sale. This percentage can range from 4-7% or more, which means by selling directly (FSBO) you save literally thousands of dollars. To see this statistic in real numbers, consider a home valued at $250,000. Even a 6% commission fee amounts to $15,000. This is money that can be put down on another property, used to cover the costs of moving, or even placed in an emergency fund for you and your family. The commission you would spend on an agent goes right into your pocket!
An additional benefit is that listing, showing, and selling in the For Sale By Owner market means you are in control of the process. You and an agent may have different ideas about the price and timeline of selling. While their motivation is to secure a buyer as quickly as possible, your priority in a For Sale By Owner situation is pricing the property correctly so you can get the most out of it.
Some say they don’t feel prepared to show their home themselves, but you don’t have to become a salesman! Actually, it’s quite the opposite. You know much more about the intricacies of your home and the perks of living in your neighborhood. While a real estate agents will have “memorized” answers about property features, you can answer any buyer questions directly and personally.
A For Sale By Owner Timeline
Don’t feel intimidated about the FSBO process if this is the first time you’re selling on your own. Here’s a basic timeline of events to follow as well as some key steps you can take to be successful:
When it comes to deciding on the listing price, getting an appraisal prevents you from overpricing, which reduces buyer interest, and underpricing, which doesn’t give you the most out of the sale. It’s also smart to leave yourself a little wiggle room for future negotiations.
A home inspection, which is different than an appraisal, is an estimate of the costs and repairs needed to make the space more livable if it is not up to code. Repairing issues before they’re found by an inspector justifies the price you’re selling it for. Even something as simple as a leaky faucet can raise some eyebrows and drive your asking price down.
Document all of the features of your home. This includes inside marketability as well as outside. For instance, is the house in a great school district? Is it close to an area with restaurants, parks, and family-friendly activities?
Before you take photos, clear away the clutter! Staging for photo ops and showings make the house seem larger, more open, and allows buyers to see the potential. Make every space seem move-in ready by working on the curb appeal. This makes a person’s decision to purchase even easier.
More than likely potential buyers of your FSBO home will have an agent by their side. But just because you’re not using an agent, as a For Sale By Owner seller, doesn’t mean you can’t work with them! Make appointments to show the house and reiterate all the positive points you wrote in the listing.
Once you’ve negotiated and agreed on a final price, it’s time to take down the “For Sale” sign and get into a lot of paperwork! First, your buyer must secure the financing for the home. While they work on that, retrieve the deed and title as well as property records, insurance documents, and other legal papers they will need by closing date.
beycome a FSBO Success Story
It’s true that FSBO properties take time and energy. With the right kind of resources by your side, it’s absolutely possible to get the maximum rewards for all your efforts.
With beycome at your side, you can sell with confidence. It’s time for you to list your home on the fastest-growing FSBO site for free.