We thought we would put up a post about something that is really on the rise lately. That is selling your house yourself – or selling your house by owner. This is also sometimes referred to as FSBO (pronounced Fizbo) which is “For Sale By Owner”. With all of the sites and information on the internet, selling a property yourself is a whole lot easier.
Why Sell Your House By Owner
The biggest and most obvious reason to sell your home yourself is the amount of money you will save. Depending on the price of your house and what state your property is located in, you can save yourself thousands of dollars. However, by saving this money means that you will have to do some things yourself that a realtor would normally do for you.
Here is more on how much you can save by going the FSBO way:
These agents provide a service and need to put food on the table, so compensation in the form of commissions are involved. In residential real estate, commissions for the transaction are usually 3% to the listing agent and 3% to the buying agent. If listing agents can find a buyer without a buying agents help, they get both commissions (a conflict of interest you should try to avoid, as a side note). Real estate commissions are negotiable and can vary, but rarely do. The real estate company to which the agent attaches their name usually takes a small cut of the commission as well.
It’s been this way for a LOOONG time.
But times have changed. And the need for such agents (particularly listing agents) is less now than ever before, with the rise of internet and all of the data it provides. Sites like Craigslist, Zillow, and Trulia have made buying or selling “for sale by owner” (FSBO) much easier. Information is no longer a barrier to being able to buy or sell by owner.
Continue reading “Save 6% of your Home Price when Selling For Sale by Owner“
6 percent! That’s not peanuts. On a 100k – that’s 6 thousand dollars you get to keep in your pocket. That number is only valid though if your buyer doesn’t use an agent. Still, that’s an additional 3 thousand you can keep in your pocket per 100k.
How To Get Your House To Sell Quickly
If you do much research though you will find that there are many fear mongers out there that will tell you that all kinds of things can go wrong by selling a property yourself. The biggest thing you need to keep in mind if you want to sell your house fast is to price it right. Here is a snippet from a great article:
Pull Comparable Listings and Sales
- Look at every similar home that was or is listed in the same neighborhood over the past three months. Appraisers do not use comps older than 3 months.
- The list should contain homes within a 1/4 mile to a 1/2 mile and no further, unless there are only a handful of comps in the general vicinity or the property is rural.
- Pay attention to neighborhood dividing lines and physical barriers such as major streets, freeways or railroads, and do not compare inventory from the “other side of the tracks.” Where I live in the Land Park neighborhood of Sacramento, for example, identical homes across the street from each other can vary by $100,000. Perceptions and desirability have value.
- Compare similar square footage, within a 10% variance of up or down from the subject property, if possible.
- Similar ages. One neighborhood might consist of homes built in the 1950s next door to another ring of construction from the 1980s. Values between the two will differ. Compare apples to apples.
- Honestly assess desirability. If you are fortunate enough to own a dream home that will cause buyers to faint upon entering, you might get away with tacking on a premium.
Read all of “How to Price Your Home for Sale “
That’s just a small snippet from that article. If you are serious about selling your property on your own, we suggest that you read the entire thing.
You can sell your house on your own without using an agent. It will take some work and probably the biggest thing is to make sure you price it right. Get it right and you will have a buyer for your property in no time.