for sale by owner
- Selling Your House For Sale By Owner – is not as simple as it seems at first sight.
In order to save money on realtor commissions, many people try their luck selling their house on their own. They usually hop on a FSBO.com or Fizber.com or Zillow.com and list their home as For Sale By Owner, hoping to speak to sellers themselves directly and negotiate a better deal without having to pay commissions to real estate brokers.
The biggest problem all For Sale By Owner Sellers encounter is the flood of calls they receive after they list their house for sale.
-They literally become a target for all real estate agents who start calling them in hopes to convince them of listing their house with them.
-They get many calls from real estate marketing services, who hunt for all and any kinds of seller leads, because they sell those leads to real estate investors.
-They also get calls directly from real estate investors who low ball them and offer them insulting cash prices.
-Sellers get so many calls, they get overwhelmed by it. They eventually end up ignoring all calls or discontinuing the listing.
After doing it for several weeks, usually For Sale By Owner Sellers end up listing their house with an agent anyway. And have real estate brokerage handle the selling of their home for them and agree to pay the commission, in exchange of having no stress of dealing with dozens of random callers on daily basis.
All in all, selling your house as For Sale By Owner is a great idea and can save you money. But in general you have to be a little more experienced in real estate and have a prescreening mechanism in place to weed out all the low ballers, otherwise you can go crazy from the amount of calls you will get. Especially today, when everything is on the internet and your phone number is accessible to people all over the world!
2. Common Issues When Selling Your House Using A Realtor
First and foremost downside selling your house while using a realtor is cost and time doing it. Realtors usually lock you into the contract ranging from 3 to 6 to 12 months. And usually give you zero guarantees that they will sell your house doing it. Once you sign the contract you can not just exit out easily, unless you negotiate that up front. Then most of the time, the realtor who listed your house, doesn’t really do much to sell it anyway. He just lists it and hopes that some buyer or buyers agent will find it on MLS (multiple listing service) and will come buy it from him.
Its a very passive selling approach. Which might work great if its a sellers market. But if the market isn’t all that “hot”, then your house will just be sitting there on market for several months without you being able to do anything about it (because of the contract) and you will have to wait for the contract to expire, or keep lowering the listing price or hope someone will appear out of nowhere to buy it, while still making your mortgage payment in the meantime.
In other words depending on the market conditions, your area, and condition of the house, selling my house with a realtor may not be the best option for you, especially if you are looking to sell your home fast!
Plus, selling your house with a realtor is the most expensive way to sell your house. You have to pay all the closing costs, you have to pay inspection fees, appraisal fee, all other fees, including realtors/brokers commission on both sides. In total selling your house with a realtor may cost you upwards of 10% if not higher depending on the state you live in.