FSBO vs. Realtors®
Not too long ago, in a not so
distant land, people who were in need of selling their home hardly considered
doing so without that services of a Realtor®. It’s hard to believe, right? Back
then, prices were constant and real estate agent commissions were not as
outrageous as they can be nowadays. In today’s market For-Sale-By-Owner (FSBO)
listings are increasing. I would advise you to weigh ALL of your options
though.
So you want to sell your house? You
go to your local Home Depot, Lowe’s, or Wal-Mart and grab you a nice FOR SALE
sign. As you drive the stake into your front yard, you are feeling a sense of accomplishment;
you put an ad in your local newspaper, sit back and let the “magic” happen,
right? Wrong! True the majority of home
sales are made by word-of-mouth, passer-bys, local ads and such, but the truth
of the matter is your home is not equivalent to your ’57 Chevy sitting in a
vacant lot awaiting a collector of old cars to come along and show interest in
it. In fact, before even purchasing “FOR
SALE” signs a seller should be knowledgeable of
the trends in the local real estate market in hopes to set competitive prices
for their home. In addition to knowing the trends you have to also be familiar
with local and state laws, disclosures, closing points, statutes regarding
assessments, and title requirements. There are a lot of local resources such as
your local building commission and title offices, local web sites that list
FSBOs, and even some how-to books and manuals from your local library.
The real deciding factor on whether
to list as a FSBO or get a Realtor® to assist in the process could very well be
based on time vs money. With a Realtor®, you can be assured that your required
paperwork is properly filed, assessments and inspections are scheduled, and
that your property is properly marketed within your local Multi-listing Service
(MLS). An agent can also take the guesswork and hassle out of negotiating closing
costs, although the average for an agent commission is 4%-8%. Depending on the
price your property is sold for this can be around $8,000 or more (for a
$200,000 property).
I would strongly suggest using a Realtor®,
(not just because I am one! J)
but for the fact that Realtors® can speed the process up due to our knowledge
of handling loan and governmental bureaucracies. When looking for the “right”
agent, a seller should look for someone who has a nice history and leads in closings within their real
estate office, someone who is readily equipped with a list of neighborhood that
they have sold, and someone who has a list of clients that would highly
recommend them.
I hope this article made some impact in your decision to
choose a Realtor® or do a FSBO.
Feel free to contact me with any questions regarding Selling your home or with any real estate matter! I will be more than happy to assist
you in your decision, no matter what route you choose to go!
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