Should You Sell Your Home as a FSBO?

You may think deciding whether to sell your home or not is your only major decision. Once you make the decision, however, you also need decide if you will sell it as a FSBO home.

Should You Sell Your Home as a FSBO?

A FSBO seller is simply a person that is selling a home without a real estate agent. The term stands for the phrase "for sale by owner." Many people go the FSBO route for a variety of reasons. First and foremost, they cannot see the sense of paying tens of thousands of dollars to a real estate agent for helping them. Second, they feel they can handle the sale themselves without much effort. A third reason is the person has experience in real estate or some affiliated area such as law and do not really need a hand holding real estate agent. While you can save a ton of money going without a real estate agent, there are a couple of things to keep in mind before you make the decision.

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One of the biggest issues that arise with FSBO sellers is time. Selling a home takes time. You will have to hold and be present for open houses. When individual buyers are interested, you will have to make time for individual showings. Depending on the demand, this may happen more than you expect.

A second area you will have to deal with is the paperwork. The offer, counter-offer and ultimate agreement are all legal documents. While this may seem a bit scary at first, most of the paperwork is handled through pre-printed forms you can buy online or at an office supply store. If you are nervous about the legal documents, one solution is to hire a real estate attorney to handle them. An attorney will run you a few thousand dollars, but it is a lot less than the six percent commission an agent will charge.

A third area to consider is frustration. Simply put, the real estate transaction can be a frustrating one, particularly during escrow. A real estate agent often serves as a buffer between buyers and sellers. You need to determine if you have the temperament to remain calm and deal with the issues if they arise.

Ultimately, the decision to be a FSBO seller is not nearly as dramatic as some would think. If you have problems or the home does not sell, you can always switch to a real estate agent at a later time.

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