If you’re considering selling your home, then you’ve probably considered doing an FSBO deal. What is FSBO? This acronym means “For Sale by Owner,” which is where you handle the sale of your home, and you don’t enlist the help of a real estate agent.
Why do people choose to sell FSBO? Well, real estate professionals charge anywhere from 3-6 percent of the sales price for their efforts in selling your home.
If the budget is tight or a homeowner doesn’t want to pay for such services, they will list the home without such help. As the marketing trends change, there are websites devoted to those who wish to sell their home without the assistance of an agent.
While this is undoubtedly an option to consider, you must understand that the small percentage that a real estate agent makes from the sale is worth every penny. Sadly, the money isn’t the only consideration when handling an FSBO deal; there are some cons to deliberate.
Cons of Going for Sale by Owner FSBO
In the grand scheme of things, FSBO seems like the way to go. However, there is much more to consider than dollars and cents. Here are the cons of doing the sale yourself.
- No Marketing
Real estate agents do a great deal of marketing on your behalf. As a result, they have a vast network of buyers they’re already working with, as well as the ability to reach the masses.
Sure, you can put your listing on social media and in the newspaper, but marketing is a hard job that is better left for professionals. It can be very time-consuming, and your time is worth money.
- You’re Responsible for Showing the Home
Another benefit that many sellers overlook is hosting showings. Typically, when your realtor has someone interested in your home, you leave and let them handle it. However, when you’re doing FSBO, you must answer the 101 questions potential buyers have on their minds. These sessions can be time-consuming as well as a hassle that many don’t consider.
- Legal Protection
One of the most significant considerations when using a realtor is legal protection. They use contracts that are iron-clad and meant to safeguard you as the seller. If you try to do a deal without a realtor, it’s wise to hire an attorney.
Unfortunately, lawyers cost money, which is another expense. If you don’t have the contract worded precisely, the buyer can come back to you later. Disclosure agreements are something that needs to be verbatim.
You can and will be sued by the buyer if you leave anything out of the agreement or the disclosure that costs them money after closing.
- The Process Can Be Slower
When you sell your home, it can be a time-consuming process. You have a full schedule and must fit this into your day. However, a real estate agent makes this their career, and they love what they do.
They’re meant to hustle, so they work hard to close the deal. Unless you have time to devote hours each day to marketing, showings, and other things that go into this process, it’s better left to someone who does it as their job.
- You May Not Close the Deal
Unless you’re professionally trained in sales, you might not be the best at closing the deal. On the other hand, a real estate agent is well prepared to reel in potential buyers. They know how to negotiate on contracts, and it takes you out of the middle of things.
It’s much easier to reject an offer if you’ve never met or had any dealings with the potential buyer. However, closing the deal is not always as easy as it seems, especially when it’s a buyer’s market.
What to Consider When Going FSBO?
Now that you’re well versed in the cons of going for sale by owner FSBO, you should also know what considerations you need to make. Here are a few to deliberate:
- Property Tax Amount
You will need to collect the tax card for your local property. The potential buyer will want to know how much you pay in taxes each year, and they will want to see that everything is paid in full.
- Make Sure the Title is Free and Clear
You need to make sure your home has no liens on it. If you owe a tax debt or some other bill attached to your property, it’s important to pay those off so the title can be transferred.
- Do You Have a Septic Permit?
Is the home on public or private septic services? You will need to access the permit when your septic system was installed, as this is essential for the new homeowner.
- Prepare a List of Utility Costs
The utilities are another primary concern for potential buyers. They want to see if they can afford the home with the mortgage and operational costs. Remember, each home has different utility costs, so they will want to see the last year’s average.
- Is Broadband or High-Speed Internet Available?
As today’s society becomes more dependent on WIFI, you want to make sure you have a list of providers in your area that can service buyers. If the home cannot get fast-speed internet, you need to ensure you make that well known.
- Educate Yourself on School Systems and Crime Ratings
If the couple has children, they will want to know about the school systems and crime ratings. Having this information fresh in your mind and down on paper can help you provide quick answers to the most asked questions. Each school has a ranking, and these numbers are essential to parents.
Should You List for Sale by Owner?
Now that you know what to consider when going FSBO and all the cons of selling this method, you need to make an informed decision. It’s not the best way to sell a home. However, if you have a budget so tight that your market value and payoff amount don’t support paying a realtor, it’s an option.
Real estate agents work hard for their money, and the service they provide to you is valuable. However, before you list FSBO, make sure you have the energy to devote to the process, as it can be very time-consuming.
Contact Sheridan Solomon & Associate Realtors Today
If you any more questions about FSBO or need a little more guidance, the staff, and realtors at Sheridan Solomon & Associate Realtors are real estate experts in Macon, GA, and Warner Robins, GA. Call or email us today, and we can get you on the path to homeownership today.