Home Articles How to Do ‘For Sale by Owner’ the Right Way

How to Do ‘For Sale by Owner’ the Right Way

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The digital age has empowered more people than ever to sell their homes without the help of a real estate broker. The standard commission fee of around 5 to 6% of the sale price can add up to as much as $24,000 on a $400,000 home, making the for sale by owner  (FSBO) route an attractive option.

While there are some misconceptions about the FSBO market, it’s essential to do it right to save money and avoid costly mistakes.

Independent studies have shown that FSBO sales were 4-7% higher than if a realtor had been involved, despite what some people may believe. Furthermore, the selling process is faster with FSBO, and the listing will reflect your authentic voice as a homeowner. If you lack experience or knowledge, it’s easy to hire a legal professional like a real estate lawyer to take care of specific tasks for much less than the cost of an agent.

The increased use of dynamic technology has leveled the playing field for FSBO options. Homeowners can access and use local real estate data, stage their homes, snap photos for listings, and host showings all from their home offices. This means that homes, condos, and apartments spend less time on the market, and there’s no need to wait for a middleman to accomplish pressing tasks.

To successfully sell your home without a real estate broker, follow these tips:

Price your property right by doing your own market analysis using free online resources like Zillow Zestimate or Chase estimation. Researching the local housing market to get a better understanding of pricing and demand for properties in their area, and check your local tax records for recent sales data in your neighborhood to get an idea of going prices.

Be ready to show and prepare your home by clearing out any excess clutter, improving lighting, and making any necessary cosmetic repairs. Hire a professional real estate photographer to capture your home in the best possible light.

Market your home in as many places as possible, including online platforms like Zillow, Realtor.com, and Redfin.  Usually a flat fee of $99 to $900.

Be serious, be flexible, and be responsive to potential buyers. Shift your perspective from selling your home to selling a house and highlight your property’s features and benefits that are attractive to potential buyers.

Be prepared to negotiate the price with potential buyers. Consider all aspects of the offer, not just the price, and be open to negotiation.

Close the deal by yourself or hire a real estate attorney to guide you through the transaction, ensuring that everything is done correctly to avoid any potential issues or disputes.

Special suggestion: hiring a professional appraiser can be a low-cost way to understand the value of your home and what fixes need to be made before handing over the title to a buyer.

Ibuyer? If you’re looking to sell your home, one option to consider is working with an iBuyer. Companies like Opendoor and offerpad make cash offers for homes, providing homeowners with a quick and convenient way to sell their property.

The process is relatively straightforward: homeowners submit a short questionnaire about their home and receive a cash offer within 24 hours. If the offer is accepted, the iBuyer conducts a free home assessment to determine any necessary repairs. The homeowner can then choose to complete the repairs themselves or allow the iBuyer to do it and deduct the cost from the sale price.

However, not every home is eligible for an offer through an iBuyer. For example, Opendoor operates in 21 cities and typically only buys homes with values from $100,000 to $500,000, and it does not buy properties built before 1960. So, it’s important to check if your home qualifies for an iBuyer offer.

Selling a property on your own can be challenging, but with proper research, and preparation, it becomes easy to successfully close the deal and save money on agent commissions.