Selling Your House FSBO
"What is the best way to sell my house?" is the conundrum facing many homeowners.
No one has more mixed feelings than someone selling the home that has been a treasured possession for many years. There are so many concerns. Is this the time to compound problems by becoming an amateur real estate agent? Many think, "no" but others say that selling your house FSBO is the best way to save money. Some would save enough to pay for a year's tuition at college. Others could save enough to buy a new car! In some markets the savings would be enough to do both those things and go on vacation. Real estate sales commissions range from a few percentage points to as much as 7% of the selling price.
Is simply placing the "For Sale by Owner" (FSBO) sign on the lawn going to be enough or does the home need to be placed in a Multiple Listing Service (MLS) catalogue? Well it's pretty easy to determine when these listings are needed. If there are regular bidding wars in near proximity to the home then it is likely to only need drive by traffic to advertise its market status. These properties sell quickly. Unfortunately, most of the world experiences some difficulty attracting prospective buyers to a given property.
Surprisingly, it is estimated that most homes do find their new owners from street traffic. People tend to drive past the neighborhood that they like and see the For Sale sign. If the seller has done his homework--there are no tax liens; no questions over good deed exist; no unsettled inheritances or outstanding divorce decrees--then the sale goes very smoothly. No commission paid out period! This FSBO can be cheap and hassle free. Many, however, are in areas which need a little advertising. Still others will get a better selling price when an open house is organized or the house is staged. Some will need to invest in local newspaper classified ads. All of these will help but if these costs are paid out individually the price totals more than anticipated. That's when a flat-fee listing can really be a good investment.
Still others can find many advantages to placing their homes in the hands of discount real estate brokers. Most if not all of the same services can be found from these businesses. A little research can go a long way toward making a sensible choice on this matter. Many will want to take the time to learn enough about the services of all kinds of brokers. Then pick the services that will help the most and be the most cost affective. Often a flat fee listing will be enough. This will give valuable MLS exposure and a selling agent may handle the more complicated aspects of the home sale. The selling agent will make half of the traditional commission and this will in turn be split with the brokerage firm he or she represents. This may be the best of both worlds since the selling agent may do a better job at closing than the seller could alone.
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