For sale by owner, is it worth it?

Are you looking to save yourself some money by dishing your own home when the time comes? I don’t blame you, in fact I wish you the best of luck.

The top questions I get by people contemplating selling their own homes are:

Will it save me money?

There are some things you should know before getting yourself into some potentially treacherous waters. Selling your own home may save you from paying a listing agents commission, however you’re still looking at 2-3% towards a buyers agent. Sellers pay the commissions in a real estate transaction and typically that ranges from 5-6% of the homes final sale price. If not done correctly that 2-3% you’re saving on a listing agent can easily come out of your own pocket just to market your home.

What do realtor expenses entail?

Realtors typically have several out of pocket expenses to get your home sold, if it doesn’t sell. I don’t get paid. Professional photography, all advertisements, marketing, print and mail outs can end up running you in the thousands just to market your home. Not to mention working with a realtor provides you with professional advice backed by an established Real Estate firm working on your behalf and representing you. Realtors brokerages also offer several different tools to their agents through partnerships that can typically run up your tab as well.

Would it take up alot of time to sell my own home?

A lot of expired or old listings I see, are FSBO. If you’re working a full time job consider that selling your home can be one as well. There is a good amount of time that can go into not only marketing your home, but also all the negotiating, behind the scenes conversations, setting up of showings, and holding open houses. That’s all before even obtaining an offer and working diligently through the escrow and closing process.

What’s the risk of trying to sell my own home?

Trying to sell your own home isn’t exactly a risk free option. The consequences of something as simple as checking a wrong box in your contract may completely kill the deal. Aside from all the legal stuff, if you’re unable to get the right audience and amount of eyes on your property it becomes that much harder to get an offer. The longer you sit on market, the more risk your homes has of becoming a stale listing.

Why use a realtor when I can save some money?

A realtor will give you a better shot at getting the highest and most amount of offers possible. While handling and setting up inspections and everything that is needed to successfully close your deal along the way. Chances are when you use a realtor, you will still end up netting more money then if you FSBO

This is just a brief over view of the difficulties faced by FSBO. If you’re thinking of hitting the Simi Valley housing market, ┬álet’s have a chat!

 


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