Selling your home seems like a formidable task for many people. There are lots of choices and decisions to make. And in the back of everyone’s mind is the desire to do it right! No one likes making mistakes especially with so much at stake. One of your first decisions is whether to use a real estate agent or do it your self. Selling your home on your own is commonly called FSBO, For Sale By Owner. Lets consider the differences between the two… The net has opened the gateway for many people choosing the FSBO method. One of your biggest expenses when selling your property is paying a real estate agent’s commission. That can cost you as much as 6% of the sale price. But think about what you’re paying for when using an agent. An agent is usually associated with an established real estate agency. And you’ll benefit from their extensive resources. They’ll provide expertise about your local market and the overall selling process. They have extensive advertising resources and will help you to negotiate and close your deal. But lets look at an example with the numbers… 6% of $300,000 is $18,000. And a figure like that gets the attention of many home sellers! They understandably start thinking of all the things they can do with that kind of available cash. Lets talk more in-depth about your choices. You must know your market before you can quickly sell a property and earn a good profit. Having your list price 1% above or below the average can affect your results. You may sit on the property for a while, or your profit could be less than what was possible. You need to get a professional and accurate appraisal of your home. This is a requirement if you sell by FSBO or use an agent. And an agent can offer you a list of comparably priced homes that recently sold. That list is often referred to as a comps listing. Since selling homes is their business, they’re familiar with your local market and can tell you if your price is reasonable. On the other hand… You can research and find similar valuable information on the net. You’ll just need to educate your self a little so you can analyze the information. And naturally having this kind of option adds to the attractiveness of selling by FSBO. Agents use a database called an MLS, or Multiple Listing Service. And other agents, as well as potential buyers working with an agent, have access to the same database. But MLS data is usually not accessible for the average person going it alone. And some states even require a license in order to access MLS data. Also, in almost all situations, you’ll have to be a paying subscriber of the MLS listing service. But with the increasing numbers of websites advertising real estate, along with the traditional options, you may no longer need the MLS listings. It’s an area for you to investigate and decide what’s best for your situation. Selling your home by FSBO isn’t difficult to do. Some people are natural negotiators. Others have learned through much experience how to find buyers and close the deal. But you’re the only one who knows how effective you can be when negotiating an acceptable and fair price. After your property has been listed and a negotiated price has been reached, the most difficult part of the selling process will begin. Each state, and country, has their own unique laws concerning real estate buying and selling. Deposits must be made in the correct amounts and at the proper times in an escrow account and insurance regulations must be complied with. Title history is investigated along with many other details. And all these must be completed before the transaction is completed. Don’t let all that scare you if you’re not experienced. You can learn how to do everything on your own if you want. And you never know, you may discover an interest in learning how to buy and sell as an investment vehicle.
