For Sale By Owner (FSBO) is a phrase that is used when the owner of a residential house sells their property without the help or use of a Real Estate Agent or Broker. A Real Estate Agent offers to assist you in selling your home for a percentage of the final price for which your house is sold. In case you are a buyer, a percentage may be charged on the final cost of your house.
Once you sign a contract with a Realtor or Broker, they are guaranteed a commission when your house is sold. In the event that you find a buyer through your own efforts and negotiate the sale, the agent is still entitled for the commission. The commission can be as much as 7% of the total price, and may amount to several thousand dollars. There is also listing fees associated when you list your home with a Realtor. However, if you sell your house ‘For Sale By Owner’, you can save on the commission and associated costs.
With little time and effort in marketing your home, a ‘For Sale By Owner’ approach could result in tremendous savings. Aside from saving on the commissions, you have many advantages in selling your home through FSBO. The savings you make on the commissions and other associated fees allow you to set a more reasonable price on the house. In other words, you won’t have to consider the commission when you price your house. You are free to take advantage of advanced home value evaluation tools available to help you determine a reasonable price on the house.
Homebuyers are also attracted to ‘For Sale By Owner’ listings. They understand that savings on commissions result in a more reasonable price on the house. They also prefer to negotiate with a homeowner directly, which is easy when a house is on FSBO listing.
Over 75% real estate transactions begin with searching for homes on the Internet, and this number is growing. If you are selling your home ‘For Sale By Owner’, you should seriously consider taking advantage of this highly cost effective medium. For a small fee, you can setup a beautiful presentation of your home on the Internet, complete with photos, features and amenities. Websites like HouseLocator.com are visited by thousands of potential buyers everyday, and when they come across your For Sale By Owner listing, they can contact you through the Website at anytime, even while you are away.