For Sale By Owner: Is it Right For Me?

For Sale By Owner, also commonly referred to as FSBO, is quickly becoming an option that some sellers turn to when it's time to put their home on the market. Money is the number one factor in making this decision. Some home sellers ask themselves why they should pay commission to a real estate agent rather than pocketing extra profit in the outcome.

While the prospect of receiving that bonus cash may seem alluring, keep in mind that there are both risks and benefits involved. It's important to do your homework before attempting to sell your home on your own.

No real estate fees? Sign me up!

Obviously the major reason to consider selling your house on your own is that there will be no fees associated with a real estate agent. Commission rates range anywhere from four percent up to seven percent, depending on the company that you're working with. When you calculate the anticipated selling price of your home and see the amount that you'll be paying to an agent, it's natural to take a step back and reconsider selling through a real estate company.

When you sell your home on your own, you are in complete control. You schedule appointments to your liking and communicate directly with the buyer. Any price changes and negotiations are made without the intervention of an agent. Without a contract looming in the background, you're free to take your time selecting a buyer. You can even take your home off of the market at the drop of a hat because you are in charge of the time line.

Who knows your house better than you? When it comes to fielding the numerous questions that buyers will have, you'll be the authority. No need to go back and forth with endless phone calls to an agent when you're there to provide answers to any inquiry your buyer may have.

Not So Fast....

Not convinced that selling your home on your own is the right avenue for you? You're smart to question. Hiring a licensed agent offers benefits that even an experienced seller isn't able to provide.

When you go through a real estate office, you are assured that any potential buyers who visit your residence are qualified to purchase your property. They have often gone through a credit check or are even pre-approved for a mortgage. These are serious buyers as opposed to strangers that just want to get a peek inside of your home.

Advice that an experienced real estate agent can offer you is invaluable. He or she can offer tips on how to make your home more appealing and increase its value. Your agent can also "coach" you through the negotiation process if you are new to this game. If your home requires any repairs, your agent can refer you to professionals who will give you fair pricing and deliver quality work.

An alarming and increasing number of home sellers are being sued by their buyers simply because they were not aware of all of the legal issues that go along with the process. While you may not know all of the legal risks involved, your experienced real estate agent will. Even with the smoothest of transactions, decisions regarding escrow terms, title transfers, contract matters, or any other number of issues, must be made. Drafting a contract yourself can prove to be difficult for even the most savvy of sellers. One false move when it comes to grammar or sentence structure can change the entire meaning of what was said and put you at serious risk.

Knowledge is Key

Whether you decide to navigate the real estate market on your own or leave it to the professionals, do your research. Selling your home by yourself is not a decision to be made lightly. Weigh all of your options and give careful consideration to both the risks and benefits. It's your future- protect it by being informed.

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