Buying and Selling a home is really difficult work. There are many times that I am asked by people "Can I save money if I sell my home without a Realtor?" The answer of course is "Yes", you CAN save money without using a Realtor's services, because you will not have to pay a commission. This could be a 6% savings. That is big money when you consider a $300,000.00 home for example - $18,000.00.
The catch of course is the "if" in If I sell my home without a Realtor. There are many financial risks in selling one's own home:
1. If you do not know how to price your house correctly (And checking the assessor's office or "Zillow" is not a good way to price your home), you could price your home too low and miss out on thousands or more likely. . .
2. Price your home too high and find that it languishes on the market while you carry the costs. One might expect to have carrying costs of $1800/ month in PITI on a $300,000.00 home in my area - that's 10 months of selling before you break even, not including the fact that the longer your property is on the market, the more likely people will think that they can "low ball you"
There are also legal risks:
Generally Realtors are licensed professionals who are familiar with the laws that govern the sale of homes. They can keep you out of trouble!
Once in a while someone will come to me with a "cash deal" and after I warn them of all of the above and more, if they insist that they want to sell the property themselves. In that case I will prepare an offer form and help the parties come to terms. I never get paid enough in these transactions!!!!
In order to prepare an offer for a FSBO property you will need the following information:
INTAKE:
Buyer Name and address
Phone/ Cell and Email address
Bank Contact Person (name and phone)
Seller Name and address
Property Address
Sale Price
Any closing cost credit?
Any gift of equity?
Deposit amount
Total down payment
Items going with the property (appliances etc.)
Any rented items (Ex. hot water heater)
Fuel for heat gas / oil
Well and septic or city water and sewer
Closing date
Explanation of the moving game plan, i.e. moving from apartment, relatives home, home that does not have to be sold simultaneously or home that does have to be sold simultaneously.
If I can help you with your FSBO or alternatively suggest a reputable REALTOR, please give me a call!
Thanks.
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