If you are currently considering selling your home in this very turbulent real estate market the biggest question you may have is whether to use a licensed real estate agent or not. Going the route of for sale by owner, or fsbo, can be very challenging but rewarding for some individuals while being very frustrating and a waste of time for others.
The numbers are very interesting if you consider them! Every year thousands of property owners choose to sell their own real estate without the use of a broker or agent. These owners add up to approximately20 percent of home sales every year in the United States. These homeowners save thousands of dollars by avoiding the high commission fees paid to these professionals in the sale of their home. This is money, which would have been part of their equity, thus more of the property owner's money stays where it belongs; in their bank accounts.
Commission rates for real estate agents vary from state to state, but you can expect to pay 5 - 7% if you choose to use an agent on your property sale. For example if your home sells for $100,000 you will end up paying $5,000 - $7,000 in fees all of which ends up coming out of the equity you have built up in your property. If you are prepared to spend some time you can sell your home, save money, and maybe even get it done quicker in the long run.
One of the biggest hurdles once you decide to sell on your own to determine your asking price. Do some research on the internet to find out how many comparable homes are on the market in your area currently and what the asking price for these homes are. This will supply you with simple supply and demand information regarding your property. The more homes available on the market similar to yours means a high supply which will mean a low demand bringing the value down. While the opposite is true if there are only a few comparable homes. This will mean a low supply for a higher demand resulting in a higher value for your property.
Once you know what a realistic asking price is for your home, you can now see how much you will save by not using a real estate agent. If you really want to sell your home quickly you can pass some of the savings on to the buyer. If your home is priced lower than the other comparable properties in your market it will become more attractive to potential buyers. It is up to you to decide if you want to use this tactic to sell quicker and how much of a price reduction you are willing to part with financially.
Another advantage of selling your own home many people find is you know the property better than any real estate agent ever can, plus you have more motivation to get it sold. Who better to point out the positive things about your home to a potential buyer than you yourself. Maybe it is the way the morning sun lights up the kitchen during breakfast, or even how the house tends to stay cool in the summer even on the hottest days. It is so much easier to sell an item when you know it well!
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If you decide to go it alone you should ensure the transaction is documented as per your state's particular laws. Using the proper sellers agreement, sellers disclosure, and other legal forms is essential to cover yourself in a large transaction. The Easy Forms is a handy online resource to buy and download real estate forms for all 50 states quickly and conveniently.
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