How Much Money Can you Save?
Ever wonder how much you could save by selling your home yourself? Read more to find out!
1) Having an interested and realistic buyer
Even though this is rare, you can find a buyer even before you have even listed your house for sale. For instance, one of your friends had a colleague at work who was looking to buy a place exactly like yours.
Finding a credible buyer as soon as you decide to sell eliminates what is perhaps the biggest challenge associated with an FSBO strategy – marketing.
Spreading the word and promoting properties is a walk in the park for real estate agents, but a big ask for someone out to sell their home all by themselves. But if you already have a reliable party willing to buy, you can skip the advertising process and save yourself a lot of money, effort, and time.
However, it is essential to note that you should not count your chickens before they are hatched. Just because someone is expressing interest in purchasing your property does not automatically mean they will follow through.
Hence, if you are deciding to work without an agent, make sure to ask the buying party to attain a pre-approval for their mortgage. Also, get your attorneys involved right from the beginning so that they are up to speed and can assist you in case of a roadblock in the process.
2) Having your house in a high-demand region
If the property you wish to sell is located in a crucial city like Washington D.C. or New York, you might be able to drum up enough interest from potential buyers, even without an agent. It also helps if you are selling at a price to simply make a sale instead of making as much profit as you can.
It’s not rocket science that sellers have the upper hand in regions with high demand. With so much competition amongst buyers, properties sell like hotcakes, allowing the seller to leverage prospective buyers into paying a premium. This means that selling in a high-demand region will compensate for the absence of an agent.
But also remember that when you are selling in a high-demand area, you need to show your property off to the maximum – make it irresistible. Hire a professional photographer to click high-quality pictures that magnify every positive feature of your property.
Also, make sure to use multiple marketing methods, including social media and word-of-mouth. Since you are selling in a sought-after area, you will likely have multiple attractive offers within the first few days or weeks of putting up your house for sale.
3) When you can afford to be patient
FSBO generally does not go well with sellers who are in a rush to sell. Selling a house demands time, especially when you do not have the luxury of an agent who will do the grunt work for you. Even with their skill and connections, an agent might need around a week to effectively market your property, get decent offers for you, and then another 60-70 days to complete the sale.
Of course, the process is going to be even longer when you are going FSBO. Therefore, a for sale by owner strategy might work for you if you have time on your side. The sale procedure will still involve the same number of steps, but at least this way, you will be able to get it done on your own without having to scramble. For instance, you will be able to take the time to fix any issues with your house, declutter, and get it cleaned, which will tremendously increase your chances of getting a higher price.
4) When you want to develop a relationship with the buyer
If negotiation is one of your key skills, you might want to take the reins yourself rather than involving an agent. By ably dealing directly with the client, you might be able to land a higher selling price compared to a seller who is selling his property through a representative. Sometimes, involving a real estate agent might prove to be counterproductive. Meeting the buyer without an intermediary will help you establish a connection that would make both parties more willing to be flexible in order to get a deal done, even if your starting points are worlds apart. With an agent walking the negotiations, the buying party might not exhibit the same warmth or openness.
To conclude, if you have done your research on how to sell a house by owner and believe that FSBO is the way to go, do keep a few things in mind.
Firstly, do not overprice. You can look up recently sold comparable houses within your neighborhood. For a small fee, an appraiser might help you know your property’s fair value and help you to set a reasonable price.
Secondly, be honest and upfront. Do not conceal any ‘negatives’ about your house – even though you might be tempted not to. Along with the ethical obligation, there is also a legal obligation to disclose any all defects in your residence. Failure to comply can land you in incredibly hot water further down the road.
We hope that this article gave you a fair idea of the ways in which an FSBO can help you save money and whether your particular situation favors a for sale by owner approach.