For Sale By Owner (FSBO) real estate transactions provide a prospective seller with the opportunity to sell their home on their own terms, but is this type of sale right for you? The following will delve into some of the pros and cons of a FSBO real estate deal.
FSBO: The benefits.
The seller does not need to discuss the best price or marketing strategy with a real estate agent. You are in complete control of how you price and market the property. In this day and age there are many online platforms available to showcase the property and draw in the attention of potential buyers.
A seller that chooses to list the property as a FSBO is also not required to share a commission with a real estate agent. As the commission is generally a set percentage of the home’s sale price, this can translate to some serious savings.
FSBO: The risks.
Real estate agents are professionals in their fields. They know the market and may be more likely to set your home at the right price. Those who use a real estate agent also generally hire a real estate broker. In fact, in most cases the real estate agent is essentially an employee of the broker. This means the seller gets a range of services, including access to prescreened buyers. This reduces the risk the seller ends up entertaining supposed prospective buyers that do not have any real interest in purchasing the property.
The final choice: What is right for you?
Only you can decide which option is best for the sale of your property. It is important to note that prospective sellers that choose to list their property as FSBO are wise to take steps to protect their interests. A real estate attorney experienced with FSBO transactions can provide counsel during negotiations, draft a sale agreement contract and prepare closing and title documents on your behalf. This can save you both time and money during the sale of your home.