3 Things To Consider Before Listing Your House As A Fsbo

It isn't unusual for a person selling their home to want to try to sell it on their own, as a FSBO (For Sale By Owner), rather than work with a Realtor. With the typical real estate commission being 6% of the sale price, listing a house and not using a Realtor can definitely save the seller a lot of money.

That being said, there are several things you must consider before you go the FSBO route. Keep in mind, there is a good reason why more than 80% of all FSBOs ultimately wind up switching to the services of a real estate agent.

1. Marketing

To begin with, listing a house is without question a time-consuming process. It isn't as simple as posting an advertisement in Craigslist. Nowadays there are lots of real estate websites you will want to list your house on and while you can do most of this yourself, there is one website that only Realtors can post to which is in fact the most crucial website of all...the local MLS or Multiple Listing Service.

Not only that, but your Realtor will also have a lot of knowledge about online marketing tactics designed to get your house placed high in the major search engines. And it is by way of the internet that the majority of home searches start.

In addition, a first-rate Realtor should have a strong network of other Realtors and buyers that they deal with routinely as part of their day-to-day business.

2. Setting the Price

Among the big mistakes many FSBOs often is listing the house at the wrong price. Pricing is by far the main factor in marketing your home and if you don't understand how to do a CMA (Comparative Market Analysis) you will most probably not price your home correctly.

3. Contracts and Negotiations

Negotiating isn't for everyone. Most people are not trained negotiators which can quickly lead to deals falling apart when they shouldn't have. Realtors, however, possess quite a bit of negotiating experience and can use that knowledge to help you close the deal. Keep in mind, negotiating is not only about the cost of the house. Negotiating also includes other aspects including loans, inspection contigencies etc.

Likewise, if you're a lawyer then completing a contract isn't a big deal. On the other hand, for the majority of us, all that legalize is mind-numbing. Having a Realtor working for you to take care of all this will make you feel more at ease.

In a nutshell...if you want to sell your home you ought to genuinely take into account the 3 factors above before you attempt to do it on your own.