In the recent real estate market, people are already considering selling their property as a “FSBO” – For Sale By Owner. These are home owners who wish to sell their homes without the aid of an agent – who is usually paid a specific percentage (6%) of the property’s selling price. Flat fee MLS (Multiple Listing Service) is still considered as part of FSBO since the real estate agent is paid for his or her service on an agreed flat fee or rate rather than a percentage of the selling price.
Why Consider FSBO – For Sale By Owner?
On a normal transaction where a real estate broker is involved, a commission is given on an average of 6% (based on U.S rates) of the selling price to the agent/broker. If one decides to sell property on FSBO, he gets to keep the 6% or the supposedly commission to himself.
Things You Need To Know
If you decide to sell a property by yourself you have to be ready for a lot of work to be done. Since you don’t have an agent, all of the tasks that an agent should be doing would be shouldered by you. Some of the secrets in selling your house can be found on the previous blog post.
One crucial decision for you to make is the price of the house. You have a lot of factors that you need to consider for you to come up with just the right price that your house is valued for.
• Make sure that you prepare your house. Check any damages and have it fixed as soon as possible. Hire exterminators in case of rats or termite issues. If you want to have a good price for your house, you need to make sure that you would work on it to have the value that you want.
• Since you would be saving some money on commission, don’t be hesitant to shed some money for an expert who would assess your house. It is necessary too that you know which factors could affect the value or worth of your house so you could prepare to improve or work around.
• It would do harm if you check on prices of houses for sale in your area. This would allow you to compare and see on what range you should decide your selling price to be. Make sure though you consider the difference of the other houses and yours, including their location, accessibility to public transport and establishment.
• Decide on your price. Make sure it is not to high for the market, yet not too low that you would lose the value of your house. Once you have decided your price, advertise it. You don’t have to spend much on advertising.
• Stage your house first. Make sure that you would make your house beautiful, both interior and exterior. Potential buyers might just drive by and get attracted to the house from the outside consequently deciding to check your whole house. Put a few decorations but remove personal belongings such as picture frames and collections. You can also put a “FOR SALE” signage on your front yard.
• Take photos of your house. A great camera can be a great help. Take photos from the outside to each rooms inside. Make sure you get the right angles for each room, making it attractive.
• Use these photos and go online marketing. There are listings online that are for free where you can post your photos and provide more information how to contact your for visiting schedules. You can also go for social media platforms such as Facebook or Twitter. Don’t post your price though. It is best to discuss the price once they have visited the house.