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For Sale by Owner (FSBO) can be an extremely tempting prospect for home sellers. If you don't have to pay the real estate commission, you can put more of the money from the house sale directly into your pocket. But it takes more of a roll-up-your-sleeves attitude to successfully complete a home sale. We'll look at why the risks typically outweigh the rewards.
Can It Be Done?
Before going any further, it's important to acknowledge that selling a home without the help of a real estate agent can be done. In fact, some sellers will tell you it's the best decision they've ever made. You'll need to research your state and local laws before starting the paperwork, but owners have successfully sold their own homes in the past.
The Downsides
There are more than a few downsides when it comes to selling a home on your own, and they typically all boil down to time and money. An agent already has a good idea of how much homes are selling for in your area, who's buying them, and why certain ones are in high demand. They know how to price the home high enough so it doesn't set the wrong anchor, but low enough to inspire interest.
The Paperwork
From contingencies to appraisals to closing costs, the paperwork for a home sale has become unbearably lengthy for most sellers. In the past, homes might be sold with nothing more than a few sheets of signed documents. Today, the stack continues to grow with every passing year.
Most of the paperwork is an attempt to address liability. For example, if a seller failed to disclose that the property was in dispute by an ex-spouse, the buyer wouldn't have to enter into a lengthy legal battle after escrow was completed. Each neighborhood has its own restrictions and rules for buyers and sellers, and it's difficult to follow them all if you're not familiar with the local codes.
Limited Reach
A good real estate agent knows how to pull in buyers from a number of backgrounds. Rather than relying on an Open House sign, they use everything from social media to their own networks to get more people interested in the property. They also know how to showcase the property in a way that appeals to the common buyer. For example, they might stage your home for young families rather than retirees (or vice versa).
The truth is that FSBO is an option, it's just often not a very good one. While you may be able to successfully sell your home, the odds of making a mistake can land you in a hot water (which can ultimately end in court).
About the Author
Sheida Rezazadeh
Our Mission Statement:
Our philosophy is simple: clients come first. We pledge to be in constant communication with our clients, keeping them fully informed throughout the entire buying or selling process. We believe that if you’re not left with an amazing experience, we haven’t done our job. We don’t measure success through achievements or awards, but through the satisfaction of our clients.
About Me:
With over two decades of experience in the real estate industry, I derive immense satisfaction from assisting clients in realizing their real estate aspirations. My journey in this field commenced with personal investments and the management of multiple properties, providing invaluable insights into the dynamics of the real estate market. Over the years, I have refined my negotiation skills, accumulating extensive knowledge and experience that empower me to deliver exceptional service to my clients.
As a seasoned professional, I specialize in residential, luxury, multi-unit, and commercial real estate. I possess the acumen to secure top dollar for sellers and the best possible prices for buyers. Recognizing the significance of creating a home sanctuary as a mother and wife, I understand the security that real estate investments can bring. It's not just a transaction; it's a life-changing experience, and I am dedicated to guiding my clients through every step of the process.
Leading a team of highly-seasoned real estate professionals, we are committed to providing personalized service. We take immense pride in building enduring relationships with our clients and tirelessly work on their behalf to help them achieve their real estate goals. Our team comprises the best and brightest in the industry, consistently striving to lead in research, innovation, and consumer education.
As a trusted resource in the complex world of real estate, I am devoted to providing the best and most timely information to my clients. My team and I stay up-to-date with the latest trends and developments in the industry, utilizing this knowledge to help our clients make informed decisions. It's not just about buying or selling a home; it's about building a better future for you and your family, and I am honored to be a part of that journey.