At first glance, some homeowners feel that selling their home is simple.Why should they pay a broker's fee when they can sell their homes themselves? Besides, who knows the home better than it's owner?
However, most For Sale By Owners(FSBOs) eventually hire a licensed professional to sell their home. Why? Because many homeowners do not have the time and energy to devote to selling a home. By the time FSBOs figure the fees for hiring consultants, appraisers, inspectors, loan officers, title lawyers, marketing, and advertising, they would have been better off paying the broker fees.
Selling a home requires an intimate understanding of the real estate market. If the home is priced too low, FSBOs loose out on money. If it is priced too high or isn't advertised or marketed properly, the property may sit. The final outcome will outweigh the commission you would have paid.
Another pitfall is many agents will not present their qualified buyers to FSBOs because of the possibility of outside negotiations behind the agent's back and FSBOs not wanting to pay the buyer agent's commission.
Before deciding to sell your property privately, consider these important questions:
- Do I have the time, energy, and proper knowledge of selling real estate? (The property must be readily accessiable to potential buyers which may become a major inconvenince.)
- Am I prepared to deal with unqualified or "low balling" prospects? (Some buyers may not be able to afford your property but taking up your time viewing the property.)
- *Very Important* Do I fully understand the necessary legal steps required to sell my property? (Many real esate sales fall through due to incomplete paperwork,lack of preliminary inspections, & not disclosing known defects of the property.)
- Am I prepared to handle any disputes with a potential buyer? ( All negotiations and agreements should be in writing. REMEMBER... If it isn't written, it never happened!)
My hope is to educate FSBOs on the pitfalls of selling your own home instead of hiring a licensed professional. It can become EXTREMELY costly to you in the long run... BE CAREFUL!!!
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