Reasons Home Buyers and Sellers Should Buy and Sell FSBO

By: Jan McBee
Submitted: 2007-01-17 16:16:36
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Why give away thousands of dollars in real estate commissions when you can do it yourself? The tools and resources used to help you buy or sell your home are now available to you through the Internet. And most of the information you’ll need to price your home competitively, information that was exclusive to real estate agents or otherwise difficult to obtain, is now at your fingertips.

According to the National Association of Realtors®, over 75% of people looking for a home start with the Internet. And only 10% of repeat buyers say they need a real estate agent's help with paperwork, negotiating and determining fair home prices. So you really can do it yourself.

Buying or selling a home can seem overwhelming. Which is why there’s such a strong temptation to turn everything over to a real estate agent and hope for the best. What most buyers and sellers don’t understand, however, is that the process requires some effort regardless of whether a real estate agent is involved. But in most cases, eliminating the middleperson can save both the buyer and seller time and a lot of money.

You take on a big responsibility when you choose to buy or sell a home. It requires planning and research. By eliminating the middleperson, you gain more control over the entire process. With your determination and our help, it’ll be well worth it.

Here are just a few reasons why you should buy or sell a home on your own:

Sellers

Preserving Your Equity When you sell your own home, you don’t pay a real estate commission. On average, commissions are about 6% of the selling price of a home, so on a $300,000 home, it means you save $18,000, which represents a high percentage of your equity. If your were to use a real estate agent, what would you get for your $18,000?

Stronger Negotiating Position You set your own price when you sell your own home. This requires research on your part and understanding what the market conditions are around you. Arriving at this price yourself gives you more negotiating confidence. Best of all, you’ll never be pressured by a real estate agent to accept a low-price offer.

Getting the Best Salesperson You can sell your home better than anyone. Real estate agents shuttle buyers in and out of homes knowing very little about them. But because you’ve lived there, you know all the charming, sellable features of the home, as well as details about your surrounding community, such as schools and shopping. This is important to buyers. Also, you set your own schedule and decide when and to whom you’ll show your home.

Sell It Quickly If you need to sell quickly--you’ve been transferred, you’ve found another home you like and need to move on it as soon as possible--you’ll set a lower asking price than if you have more time. Since you’re selling your home without a real estate agent, you’re not paying an average 6% commission, so you have a much greater degree of flexibility in pricing your home. If you need to sell quickly, you can price your home noticeably below the price of similar homes in your area to attract more buyers and still profit handsomely.

Buyers

Save Money If you use a real estate agent to buy from a seller who is selling on their own, your agent will require a commission, usually 3%. It's usually charged to the seller. But if the seller is set on getting his full asking price, you'll have to pay the commission or find another home. An agent could get in the way of buying the home you really want.

But if you buy directly from the seller, no commission is paid. If the price the seller is asking doesn't already reflect these savings, you’re in a good position to negotiate.

Look at What You Like Typically, the buyer’s real estate agent wants the buyer to buy the most expensive house they can possibly afford in the shortest time possible. At the very least, this means you’re whisked from one expensive house to the next before seeing homes more appropriate for you. At worst, it could mean you end up buying a home with a mortgage that stretches you financially.

Work Directly with the Seller First, you’re able to see a home in the presence of the seller. This can be invaluable as you walk through a house and need answers to even the smallest questions. In addition, you can negotiate the terms of the sale directly with the seller and without the interference and agenda of a real estate agent. For help with getting the right house for a good price, please refer to our Buyers Guide.

Summary

For Sale By Owner gives both the buyer and the seller control of the transaction. They can negotiate directly with each other and respond directly to each others needs, with no middleman in the way. And because no commission is paid, the selling price of the home can be lower than it would be otherwise, saving the buyer money while preserving a large portion of the seller’s equity.

Jan McBee is chief writer and research adviser for DwellWell.com.

Article source: Expert Articles