When you list your home as “For Sale by Owner”, you have opted to sell without an agent. Sellers initially find this option an enticing way to save money on agent commission costs. However, selling a home by yourself comes with significant risks, from legal trouble to marketing issues. So before you decide to list without an agent, consider some of the dangers of FSBO.
When you list your house on your own, you need to figure out how you’re going to market it. Your home will not be listed in the multiple listing system, so how will people see it? That will be your first obstacle, and exposure is critical in getting your house viewed by potential buyers. The number one way is through MLS, and without that as an option, you’ll have to get creative.
When you sell your home unrepresented, there are many legal issues you are opening yourself up to. How are you going to work with your buyer’s agent? What will you do if you accidentally discriminate against a protected class? What contracts are you going to use? Do you have your own contract? These are all questions you need to be able to answer. Make sure you’re covered and understand the implications of your decision because you could easily do something that skirts the law without even realizing it.
Understanding The Market
You may think that in a market like today, you will easily be able to sell your home alone. The market is hot, houses are selling fast, and there’s not enough inventory. However, there are still downsides when it comes to FSBO. Are you prepared to choose the best option out of five offers? Do you know the questions to ask a mortgage broker? Do you know what to look for in each of the contracts to see which one has the most advantages and benefits to you as the seller? You’re going to have a lot of decision-making to do, and you’re likely going to become overwhelmed quickly. Real estate agents are educated and have a lot of education and knowledge under their belts.
When you’re thinking about selling your house on your own, consider the liability you’re opening yourself up to and have a plan to deal with the stressful situations that arise in real estate transactions. It may be in your best interest to pay a realtor to deal with the complicated transaction of selling a home. If you’re considering selling your home, contact us today to find out how we can help.