Each year homeowners who are selling their homes must make the decision of whether they will hire a real estate agent or sell their home privately. More and more homeowners are deciding that the benefits of selling their home without a broker makes sense. There are numerous advantages to selling one's home privately (commonly referred to as "For Sale By Owner or FSBO".
Perhaps the biggest advantage to selling a home privately is the savings you can make when you can avoid paying a sales commission to the listing agent. As you may already know, real estate agents work on a commission basis. The exact commission that an agent earns varies from one area to another; however, the average in most places is around 6%. This means that if your home sells for $300,000 then you must pay the real estate agent $18,000 when the sale of your home concludes.
Many sellers are also discovering that they like the fact that they are able to maintain complete control over the process of selling their home. When you choose to sell your home privately, you can control the frequency of showing your home. You are also able to maintain control regarding the way in which your home is presented when it is shown. If you want to light the fire in the fireplace, light candles, offer coffee or take any other action to set the right atmosphere, the choice is yours.
The fact that you, as the seller, are the sole expert regarding the topic of your home should not be overlooked either. There is really no one who is more informed regarding your home than you. As a result, you and only you can highlight the benefits and attractions of your home as well as the surrounding neighborhood to the best advantage.
Pricing Your Home Here's my motto when it comes to pricing - Don't just price to sell... price for PROFIT!
Pricing of a house is probably the most important, yet least considered aspect of selling your home as a for sale by owner - FSBO. The wrong price will cost you thousands of dollars any way you look at it!
A for sale by owner price that is "too low" will result in a "Net" that is thousands ($1,000's) less than what you could have gotten with a little research. A price that is "too high" will cause your house to sit on the market for a long time.... and possibly never sell!
Not selling means paying thousands more in mortgage payments, taxes, and insurance until you lower the price to what the market would have supported in the first place...or hire a realtor to sell it for you and pay an outrageous commission! To make matters worse, the wrong price causes your house to get "shopworn". The longer it stays on the market the more you'll be subject to really low-ball offers!
Incorrect pricing is the classic FSBO mistake! Getting the price right from day one increases your chance of a quick sale dramatically!
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