There are basically two ways to sell a home – with the help of real estate agents or by you. The second process is called FSBO or For Sale By Owner. In the second process, there will be no agents acting as an intermediary and you will be the decision-maker. It is not going to be easy and you will need to first understand how the process works. If you have opted for FSBO then you will need to do a lot of homework, which is something that is taken care of by a real estate agent.
First things first, if you are in hurry then paying a real estate agent a 5% commission will be well worth it as they have the resources and experience to help you sell your home. You can choose FSBO if you have ample time on your hands and are not in a hurry to sell your home. Now let’s take up the job of demystifying the entire FSBO process. There are several aspects that you will need to consider in an FSBO situation as the more you understand the process, the easier it will be for you to sell your home.
So where do you start? You will need to first identify a list of professionals who will help you sell your home. You will need the services of a home inspector, real estate lawyer, and appraisers. One of the good things about the entire process is that due to the reach of the internet, you will be able to advertise and find 80% of your buyers online. So the next step would be to research the real estate market. Research is of primary importance because if you are unable to understand how the real estate market behaves then you might not be able to achieve success. You might end up selling the home before the market reaches its zenith or after it falls. Here are some steps that you can follow:
- You can start with the real estate section in your local daily and understand the current real estate market conditions. You need to identify when the market is hot and when it is cold. Read about expert opinions and what real estate agents predict regarding the market.
- If there are several other sellers in your neighborhood then talk to them and find out how they are handling the entire process. Find out more about their experience and get an overall feel of the process.
- You can even speak with real estate agents in your area. Just because you have chosen to go solo doesn’t mean that you can’t get information from the agents. It always helps to dangle a carrot and get the required information regarding the current market trends, the sale price of homes similar to your home. You can also be upfront and tell them that you are planning to go FSBO and need guidance. A reputed real estate agent will be able to provide you the guidance. Some agencies might even charge a small fee.
- Browse through property listings in your area or locality to understand how sellers have advertised their property. This will help you later on.
If your research is thorough then it will put you in an advantageous position!