Are you thinking of forgoing the typical method of working with a real estate agent to sell your home? If you are thinking of going FSBO, here are a few factors that you should consider.
Being Your Own Agent Will Take Time
Being a real estate agent is a time-consuming job, even if you are only representing yourself. If you plan on listing your home and shopping for places to live simultaneously, it will take an immense amount of your time.
You’ll Need to Assess the Competition
Thinking that your home will sell itself? That’s probably not the case. You’ll need to assess the competition, which means taking note of homes that are similar to yours in the area and trying to figure out ways that you can make your home stand out from the rest.
Avoiding Commission? Maybe Not
Many homeowners sell on their own to avoid paying high commission fees to agents. Unfortunately, they are unaware that commission fees or listing agreements typically apply to agents who list the home on a multiple listing service (MLS).
If you put your home on the Multiple Listing Service, you will generally be required to pay a fee of up to 6% of the sales price.
Be Ready to Run All Your Own Showings
You will also have to be available to show your home to potential buyers. If you are planning a vacation or business trip, you’ll need someone reliable who can check on the house when there are no scheduled showings and look out for any signs of trouble.
You Will Act as Lead Negotiator
As a self-appointed real estate agent, you will be responsible for conducting the initial negotiations with a buyer. You are also responsible for working out contract signing details and all other aspects of negotiating, such as counter-offers and inspection periods.
There Is More Work to Do After the Offer Comes In
Without the realtor to handle the details post-offer, it will be up to you to make sure that those contract terms are met. Be prepared for long hours of negotiating, such as making follow-up calls or writing letters, until you can iron out every detail in your favor.