For most of the real estate investors, buyers and sellers who have decided to go the FSBO way (For Sale By Owner) the primary objective is to save on the payments of commissions to the real estate agents. With the commission hovering in the range of 4% -6%, this also makes a lot of economic sense.
The realtors and the real estate agents often argue that in order to generate interest in your property in a slow and recessionary markets like the current one, you would require their real estate agent’s services.
On the other hand the investors, sellers and buyers have the argument that the Internet has its own ways of generating potential leads for fsbo homes. Add to this that the ease with which the process can be learnt and the speed of communication between the stakeholders.
Some of the benefits are:
Saves Time
Because you are dealing directly with the owner of the home and that that owner of the home is dealing directly with the purchaser the communication turnaround time is fast and secured. The entire process objective is achieved faster than usual.
Saves Money in the form of commissions
Many buyers believe that the services of the realtor are free. But in actual the real estate agent or the realtor has already loaded his commission / charges in the sell price. The selling offer price that you have got is loaded one. Direct purchase would be minus the commission value.
More Convenient
Communicating directly with the owner is easy and less frustrating than dealing with the middleman. The negotiations are more efficient and effective. The process becomes easy and transparent.
Make sure you consult an appraiser to arrive at a proper valuation of your property and hire a lawyer who is expert is real estate to prepare for your property papers.
I can see it being good in some ways and some ways not. A FSBO sellers may not be experienced in negotiations and easily offended by comments or price offered. They may also choose to list higher than appraisal price on house. Hiring a lawyer is a good step in this process.
A FSBO may be trying to recover there cost from a recent purchase within 2 years and maybe market has changed and drop since then and house is not the value they are asking. Someone paying cash would not be aware as without a loan no appraisal is required.
I couldn’t agree more with your benefits of going FSBO! They key is for the seller to utilize all of the right tools (marketing, contracts, appraisers, etc).