There comes a time in each homeowner’s life when the much-loved house must be sold. This could be reasons for having to relocate to a different city or state, or the house no longer fills the owner’s requirement due to a growing family. Reasons are varied.
When calculating the asking price of a property, there are many things to take into consideration; the year that the house was built, the square footage, the extent, and quality of renovations. Is there needed repair work to be done? - such as a new roof or HVAC. Is there a pool etc. Each house will have different attributes and different issues. Each of these items affects the selling price of a property.
A homeowner can hire a Real Estate agent/broker or sell him/her self. When a property is put on the market without the help of an agent, it is referred to “For Sale By Owner,” or FSBO.
In the mindset of an owner, FSBO listings are intended to cut out of the middleman, the agent/broker and avoid paying commissions to that intermediary.
FSBO listings require work on the part of the seller. The homeowner selling his own home has tools and information on the internet to make his own evaluation of what his house is worth. The Internet-based company Zillow.com is one such source, but depending on where the property is located and other circumstances such as features and condition, the data may be less than accurate. In fact, most self-sellers may undervalue their asking price.
The challenges for the owner is that many interested house buyers may be unqualified, bargain hunters, or merely nosey neighbors. Marketing, signs, showing and negotiation and documentation. All aspects of selling that an agent/broker is responsible for is now up to the self-seller.
Are there benefits of a For Sale by Owner listing? You decide if you want to start the sale process with the potential buyer. You take in the whole amount of the sale proceeds.
When a real estate agent is called in to sell to evaluate a property, he uses tools and data that are available to him/her that gathers information from a variety of sources. The MLS (Multiple Listing Service) captures only those houses sold through that system, not those that are still on the market and not those that are sold by FSBO. Therefore, the analysis that the agent provides, really shows what the market will bear and what a potential buyer is willing to pay. One of the agent’s important roles is to screen those buyers to make sure that they are qualified by their lenders to shop in a specific price range. The agent's commission is already part of that pricing.
So where does that leave us? Are FSBO listings superior to agent listings?
Would you prefer to have your local dentist do a dental restoration for you in his office, or would you rather look at a Youtube video, read a couple of articles and do it yourself? Would you like your flight attendant to be skilled and qualified, or do you think that a local diner's waitress could do the job if something unforeseen happens?
The answer comes down to you as a homeowner, and what you know, and how much time you can commit to self-selling considering your already busy schedule. Ultimately and hopefully you will end up with the same amount of money in your pocket (if you've done your homework correctly), but how much are you willing and able to tolerate during the process.
Take the time to decide how you want to proceed before setting out to sell your home.
I will make sure that the job is done right and that you get the most money for your house.
Looking forward to discussing this with you.
Have a great day,