By: GINA DEWAR DRE#02057793 , NEWJOURNEY RE GROUP
“FSBO” stands for “For Sale By Owner.” It refers to the practice of selling a property (such as a house or real estate) without the assistance of a real estate agent or broker. In an FSBO transaction, the property owner takes on the responsibilities typically handled by a real estate agent, such as marketing the property, negotiating with potential buyers, and managing the sale details.
Selling a property as FSBO can be appealing to some homeowners because it allows them to avoid paying a real estate agent’s commission, which is usually a percentage of the sale price. However, it also means that the homeowner must handle all aspects of the sale process themselves, including pricing the property, preparing necessary documents, and navigating the legal and financial aspects of the transaction.
While some people successfully sell their homes as FSBO, others prefer the expertise and support that a real estate agent can provide, especially in complex or competitive markets.
For Sale By Owner (FSBO) has both pros and cons.
Pros:
Cost Savings: You can avoid paying real estate agent commissions, potentially saving money.
Control: You have full control over the sale process, negotiations, and decisions.
Cons:
Limited Exposure: Marketing and reaching potential buyers might be challenging compared to listing with an agent.
Complex Process: Managing paperwork, negotiations, and legal aspects can be complex without professional guidance.
Time-Consuming: Selling without an agent may require more of your time and effort.
If you decide to sell on your own, make sure you know this:
- PURPOSE: Outlining your objectives: why are you selling? What is your timeline? Where are you going?
- MARKET: The macro and micro market of real estate; supply and demand; trends and metrics; market research with updated information; personal timing and seasonal considerations; buyer strategy and analysis
- LISTING DETAILS: Improvements, stage or not, photography, launch time.
- MARKETING PREPARATIONS: Advertising, social media plan, open houses, etc.
- PROPERTY INTRODUCTION: Marketing plan, attracting qualified buyers, weekly reports.
- NEGOTIATION STRATEGIES: Written offers analysis, negotiation of terms, back up offers and multiple offers strategy.
- ESCROW PROCESS: execute contracts, complete disclosures, meet deadlines and contingencies, fulfill duties and responsibilities.
- CLOSING: make sure property is ready to be transferred, final documentation and actual closing
- IF SALE IS NOT COMPLETED: have a backup plan to start all over.
As you can see, it is not always as easy as it sounds. I suggest you schedule an appointment with a real estate agent and decide afterward if you want to go through with it “solo”.
